By Sumit Manwal, Founder, Hospitality Vacancy
Hotels come in many shapes, and one hotel can belong to several categories at once. A resort can also be a heritage hotel; a city hotel can also be a business hotel.
This guide brings together the main ways hotels are classified, with examples, so you can understand and explain them confidently.
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Classification is based on many criteria and classifying hotels into different types is not an easy task. The hotel industry is so vast that many hotels do not fit into single well defined category. Industry can be classified in various ways, based on location, size of property etc.
1. Based on location
- City centre: Generally located in the heart of city within a short distance from business centre, shopping arcade. Rates are normally high due to their location advantages.They have high traffic on weekdays and the occupancy is generally high.
- Example: Taj Mahal, Mumbai
- Motels: They are located primarily on highways, they provide lodging to highway travellers and also provide ample parking space. The length of stay is usually overnight.
- Suburban hotels: They are located in suburban areas, it generally have high traffic on weekend. It is ideal for budget travellers. In this type of hotel rates are moderately low.
- Airport hotels: These hotels are set up near by the airport. They have transit guest who stay over between flights.
- Resort hotels: They are also termed as health resort or beach hill resort and so depending on their position and location. They cater a person who wants to relax, enjoy themselves at hill station. Most resort work to full capacity during peak season. Sales and revenue fluctuate from season to season.
As name implies these hotels are established on luxury liners or ship. It is located on river, sea or big lakes. In cruise ships, rooms are generally small and all furniture is fixed down. It has long stay guest.
2. Based on Size of Property
The main yardstick for the categorisation of hotel is by size the number of rooms available in the hotel.
- Small hotel: hotel with 100 rooms and less may be termed as small hotels.
- Medium sized hotel: hotel which has 100-300 rooms is known as medium sized hotel.
- Large hotels: hotel which have more than 300 rooms are termed as large hotels.
- Mega hotels: are those hotels with more than 1000 rooms.
- Chain hotels: these are the group that have hotels in many number of location in India and international venues.
3. Based on the Level of Service
Hotels may be classified into economy, and luxury hotels on the basis of the level of service they offer.
- Economy/ Budget hotels: These hotels meet the basic need of the guest by providing comfortable and clean room for a comfortable stay.
- Mid market hotels: It is suite hotel that offers small living room with appropriate furniture and small bed room with king sized bed.
- Luxury hotels: These offer world class service providing restaurant and lounges, concierge service, meeting rooms, dinning facilities. Bath linen is provided to the guest and is replaced accordingly. These guest rooms contains furnishing, artwork etc. prime market for these hotels are celebrities, business executives and high ranking political figures. Example: Hyatt Regency, New Delhi.
4. Based on the Length of Stay
Hotel can be classified into transient, residential and semi residential hotels depending on the stay of a guest.
- Transient Hotel: These are the hotel where guest stays for a day or even less, they are usually five star hotels. The occupancy rate is usually very high. These hotels are situated near airport.
- Residential hotels: These are the hotel where guest can stay for a minimum period of one month and up to a year. The rent can be paid on monthly or quarterly basis. They provide sitting room, bed room and kitchenette.
- Semi residential hotels: These hotels incorporate features of both transient and residential hotel.
5. Based on Theme
Depending on theme hotel may be classified into Heritage hotels, Ecotels, Boutique hotels and Spas.
- Heritage hotel: In this hotel a guest is graciously welcomed, offered room that have their own history, serve traditional cuisine and are entertained by folk artist. These hotels put their best efforts to give the glimpse of their region. Example: Jai Mahal palace in Jaipur.
- Ecotels : these are environment friendly hotels these hotel use eco friendly items in the room. Example: Orchid Mumbai is Asia first and most popular five star ecotel.
- Boutique hotels: This hotel provides exceptional accommodation, furniture in a themed and stylish manner and caters to corporate travellers. Example: In India the park Bangalore is a boutique hotel.
- Spas: is a resort which provide therapeutic bath and massage along with other features of luxury hotels in India Ananda spa in Himalaya are the most popular Spa.
6. Based on Target Market
- Commercial hotel: They are situated in the heart of the city in busy commercial areas so as to get good and high business. They cater mostly businessmen.
- Convention hotels: These hotels have large convention complex and cater to people attending a convention, conference Example: Le meridian, Cochin, is a hotel with largest convention centre in south India.
- Resort hotels: These leisure hotels are mainly for vacationers who want to relax and enjoy with their family. The occupancy varies as per season. The atmosphere is more relaxed. These are spread out in vast areas so many resorts have solar powered carts for the transport of guest.
- Suite hotels: These hotel offer rooms that may include compact kitchenette. They cater to people who are relocating act as like lawyers, executives who are away from home for a long business stay.
- Casino hotels: Hotel with predominantly gambling facilities comes under this category, they have guest room and food and operation too. These hotels tend to cater leisure and vacation travellers. Gambling activities at some casino hotels operate 24 hours a day and 365 days a year.
Example:Las Vegas in United State is Famous for Casino hotels.
- Boatels: A house boat hotels is referred as boatels. The shikaras of Kashmir and kettuvallam of kerala are houseboats in India which offers luxurious accommodation to travellers.
Rotels
These novel variants are hotel on wheel. Our very own "palace on wheels" and "Deccan Odessey" are trains providing a luxurious hotel atmosphere. Their interior is done like hotel room. They are normally used by small group of travellers.
FAQ
What are the main bases for classifying hotels?
Common bases include location, size, level of service, length of stay, theme, target market, ownership and star rating.
Can a hotel fit more than one category?
Yes. Most hotels fit several categories at the same time.
Your next step
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- Hotels hiring: Register as an employer on Hospitality Vacancy.
Related reading on this blog
- Classification of Hotels by Location and Clientele
- Classification of Hotels by Size: Small, Medium, Large and Mega Hotels
- Classification of Timeshare: Traditional, Fractional and Points-Based Ownership
About the Author
Sumit Manwal is the founder of Hospitality Vacancy (since 2017) and has 20+ years of experience in hospitality. He received the "Excellence in Hospitality Sector of Uttarakhand" award, presented by Shri Dhan Singh Rawat ji (January 2023), and the Dainik Jagran inext Uttarakhand Ratan Samman for Excellence in Hospitality & Education, presented by Shri Bhagat Singh Koshyari ji (2023). He helps hotels build reliable teams and professionals grow their careers.
📧 Contact: manwal@hospitalityvacancy.com | 🔗 LinkedIn
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