The document discusses various ways that hotels can be classified, including by size, location, clientele, length of stay, facilities, and ownership. It provides details on classifications such as small, medium, large, and mega hotels; downtown, suburban, resort, airport, and motel locations; business, group, convention, youth, and casino clientele; transient, residential, timeshare, and condominium lengths of stay; and independent, chain, franchise, and management contracted ownership models. The purpose is to outline the American Hotel and Lodging Association's approach to categorizing different types of hotel and lodging properties.

1. Classifications of Hotels

2.  According to the AH&LA (American
Hotel and Lodging Association –
formerly the AHMA) there are several,
not necessarily exclusive, categories
of hotel and lodging property types.

3. Hotels can be classified as :
Size
Location
Types of Clientele
Length of Stay
Facilities Offered
Ownership and Affiliation
Theme Basis

4. Size
 Small Hotel: < 25
 Medium Hotel: 26-
100
 Large Hotel: 101-
300
 Very Large Hotel:
301-1000
 Mega Hotel: >1000

5. Location
Downtown Hotel:
 They are located in the heart of the city in
the busy commercial and shopping areas.
 Expensive with high room rates as the land
to make the hotel is costly.
 Quality hotel to cater to a moneyed
clientele, usually the business and corporate
community.
 Premium brands of hotels chains or
independent deluxe hotels of a very high
quality.
 The centre of entertainment with leading
restaurants , bars and night clubs.

6. Suburban Hotel
 These hotels are located on the outskirts of
city where the land is cheaper than
downtown locations.
 They attract clientele that are cost
conscious, thought not necessary budget
travelers.
 Promote their facilities for training programs,
conferences and seminars because of a
leisurely ambience.
 Have better room rates and facilities or
group like large lobbies and dining halls.
 Ideal hotel for groups.

7. Resort
 Resorts are located at natural or man-made
vacation sites e.g. hill station ,seaside,
waterfalls, safari parks etc.
 High seasonal depending upon climates and
holidays to get their clientele. They have to
make most during those times and charge
well.
 Provide heavy off-season discount to attract
budget conscious.
 Geared towards families and couples.
 Would possibly have one dining room with
meals that depend on local seasonal
vegetables.

8. Airport Hotel
 These hotels are located near the Airport.
 Cater mostly to the transient passengers
who may catching another flight to complete
their journey .
 Have 24 hour coffee shop(All Day Dining)
for quick meals.
 Have a shuttle coach service to the airport
and the city.
 The guest staying in these hotels need only
a room to sleep before the next flight.

9. Motel
 These hotels are located on principle
highways and road junctions.
 Small lodging facility with 15-100 rooms
for the automobile traveler.
 Low building maybe a story or two at
most.
 Provide ample parking space sometime
in front of their rooms.
 A diner and a bar at the most.
 Guest stay overnight at the most.

10. Camps
 Camps are located on the trekking
routes.
 Foods are cooked around a campfire.
 Large lots where caravans are parked.
 The camps will have common toilet and
bath facilities with hotel and cold water.
 Guest sleep in their own caravan.
 Potable drinking water fountains,
landscaped surroundings, barbeque pits
and snack food dispenser are other
facilities.

11. Types of Clientele
 Business Hotel
 Group Hotel
 Convention Hotel
 Youth Hostels
 Casino Hotel

12. Business Hotel
 These hotels specialize in providing those facilities and
amenities for the business travelers and corporate travelers.
 Business centre that provides meeting rooms, secretarial
services and modern telecommunication facilities including
the internet.
 A business lounge which allows executives to have private
meals. The lounge provides the latest newspapers and
perhaps a library.
 The rooms are equipped with high speed internet facilities,
ergonomic writing desk and chairs, minibar, safety lockers,
multi-channel television etc.
 Multi-cuisine restaurants and several bars are available.

13. Group Hotels
 These hotels are geared for volume
traffic at any given time.
 Large lobbies to accommodate groups
 Lobby staff that are equipped to handle
volume baggage
 Separate baggage elevators.
 Rooms that are all twin bedded.
 Large dinning halls to seat several
groups at a time.
 No frills in the rooms like that found in a
business hotel.

14. Convention Hotel
 A convention is an national or international
event that brings large number of people o a
similar vocation together to learn the latest
development in that field.
 These hotels are specially geared to hold
conventions.
 Large registration areas
 Meeting rooms for break-out seminars and
presentations
 Large dining halls to feed up to 2000 people
 State of the art communication, projection
system and lightning; translation services ,
sight seeing tours , gymnasiums and
swimming pools

15. Youth Hostels
 Youth hostels cater to the travelling
youth, the YMCA hostels are the best
examples of this type of
accommodations.
 Dormitory style accommodation and
may be some single rooms for the
discerning.
 Common toilets and shower areas.
 Large dining area with simple food.
 Gymnasium, games courts and fields.
 Assembly hall with a stage for youth
gatherings and entertainment.

16. Casino Hotels
 These hotels service only one purpose
that is to serve the guests who want to
gamble.
 Large room fitted with twin-queen-sized
beds with bathrooms with separate
bathing, shower and toilet areas.
 Huge auditorium for entertainment by
world famous stars.
 Gaming halls(where gambling takes
place), sometimes the size of a football
field with all possible gambling including
banks of slot machines, black tables,
roulettes tables etc.
 Unique décor with great ambience.

17. Length of Stay
 Transient Hotel
 Residential Properties
 Time Share Properties
 Condominiums(condo)

18. Transient Hotel
 These hotels are those where guest
stay for short duration stays to
maximum of week.
 Example of transient hotels are
Downtown hotels, Motels, and Airport
hotels are good example of transient
hotels.
 Since the duration of stay is short the
guest need a comfortable room with
possibly in- room tea/coffee facilities.

19. Residential Properties
 These are equipped for longer stay.
 Hotel apartments are good example of
this and are found in many community
hotel complexes.
 These rooms are suite consisting of
two rooms –one living area and the
other a bed room.
 The suites are fitted with kitchenettes
for personal cooking.

20. Residential Properties
 The rooms are cleaned by outsourced
housekeeping service.
 The complex will have security service
with pass key to enter the building at
night.
 Guest may lease these
accommodation or anything up to a
year.

21. Time Share Properties
 Timeshare properties typically involve
individuals who purchase the ownership of
accommodation for a specific period of time
– usually one or two weeks a year.
 These owners then occupy the unit- usually
a condominium- during that time.
 Owners may also have the unit rented out
by the management company that operates
the hotel.
 These hotels are popular in resort areas.
 Owners may not be able to afford fractional
ownership(ownership of a unit for few weeks
a year).

22. Condominiums
 Condominium hotels are similar to timeshare
hotels, the only difference lies in the ownership.
 Units in condominium hotels have only one
owner instead of multiple owners.
 In condominium hotels an owner informs the
management company of when he or she wants
to occupy to occupy the unit.
 That way, management company is free to rent
the unit for the remainder of the year.
 Time share and condominium owner receive the
revenues from the rental of units and pay the
management company a fee for advertising,
rental, housekeeping and maintenance
services. The owners are also responsible or
furnishing the units.

23. Ownership & Affiliation
 Independent Hotel
 Chain Hotel
 Franchise/Referral
Group
 Management
Contracted Hotel

24. Independent Hotels
 Independent hotels have no identifiable
ownership or management affiliation with other
properties.
 In other words independent hotels have no
relationships to other hotels regarding policies,
procedures or financial obligations.
 A typical example of a individual property is a
family owned and operated hotel that is not
required to conform to any corporate policy and
procedure.
 From a business perspective some independent
properties are organized as a sole
proprietorships or partnerships, while others
incorporated by their owners to restrict
insurance risk and personal liability.

25. Independent Hotels
 The unique advantage of an
independent hotel is its autonomy.
 Since there is no need to adhere to a
particular image, an independent
operator can offer a level of service
geared towards attracting a specific
target market.
 An independent hotel however may not
enjoy the brad advertising exposure or
management insight and consultancy of
an affiliated property, and is unable to
take advantage of the volume
purchasing power of a chain hotel.

26. Chain Hotel
 Chain ownership usually imposes certain
minimum standards, rules, policies, and
procedures to restrict affiliate activities.
 In general, the more centralized the
organization, the stronger the control
over the individual property.
 Chain with less dominant central
organizations typically allow individual
hotel managers to exercise more
creativity and decision-making autonomy.

27. Franchise/Referral Group
 Franchising…
◦ Allows for a company to expand rapidly
◦ Uses other people’s money (franchisee)
◦ Franchisor
 The company
 Franchising
◦ Examples
 HFS - Hospitality Franchise Systems
◦ Choice Hotels International

28. Benefits for Franchisee
 Benefits…
◦ Set of plans and specifications for building
◦ National advertising
◦ Centralized reservation system
◦ Participation in volume purchasing
discounts
◦ Listing in the franchisor’s directory

29. Disadvantage for the
Franchisee
 Disadvantages…
◦ Lack of operational power; must conform
◦ Large fees
◦ Central reservations produces 17-26% of
reservations
◦ Must meet standards as set by franchisor

30. Management Contracted Hotel
 Management companies are organizations
that operates properties owned by other
entities.
 These entities range from individual
business people and partnerships to large
insurance companies.
 Under this type of contract, the owner or
developer usually retains the financial and
legal responsibility for the property.
 The management company usually operates
the hotel, pays its expenses and in turn,
receives an agreed upon fee from the owner
or developer.

31. Thanks and regards
BHAVVESH JOSHI
ASSISTANT PROFESSOR
BHIKAJI CAMA COLLEGE OF HOTEL
MANAGEMENT
SWAMI VIVEKANAND SUBHARTI UNIVERSITY