Hotels can be classified in several ways, including by size, star rating, location, and ownership. Size is determined by the number of rooms, with small hotels having 25 or fewer rooms and large hotels having over 300 rooms. Star ratings are assigned by a committee and range from one to five stars. Location categories include city/downtown hotels, suburban hotels, airport hotels, motels, resort hotels, and more. Ownership determines if a hotel is part of a chain, independent, or operates under a franchise or management contract. The document provides details on each classification.

1. By
DOMINGO AQUINO
PROF. PFJP

2. 
HOTELS CAN BE CLASSIFIED IN THE FOLLOWING
WAYS:
ON
 ON
 ON
 ON

THE
THE
THE
THE
BASIS
BASIS
BASIS
BASIS
OF SIZE
STAR SYSTEM
OF LOCATION
OWNERSHIP

3. 
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SIZE REFERS TO THE NUMBER OF ROOMS.
VARIOUS CATEGORIES ON THE BASIS OF SIZE
ARE:
SMALL HOTEL- A HOTEL WITH 25 ROOMS OR LESS
IS CALLED A SMALL HOTEL.
AVERAGE HOTEL- A HOTEL WITH 26 TO 99 ROOMS
IS CALLED AN AVERAGE HOTEL.
ABOVE AVERAGE HOTEL- A HOTEL WITH 100 TO
299 ROOMS IS CALLED ABOVE AVERAGE HOTEL.
LARGE HOTEL- A HOTEL WITH MORE THAN 300
ROOMS IS CLASSIFIED AS LARGE HOTEL.

4. 
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THE STAR CATEGORY TO THE HOTELS ARE
GIVEN BY THE COMMITTEE CALLED “HOTELS
AND RESTAURANTS APPROVAL AND
CLASSIFICATION COMMITTEE (HRACC)”.
ONE STAR
TWO STAR
THREE STAR
FOUR STAR
FIVE STAR
FIVE STAR DELUXE
FIVE STAR SUPER DELUXE

5. 
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CITY/DOWNTOWN/COMMERCIAL HOTEL:
These hotels are located in the heart of the
city.
These hotels are more expensive than the
suburban hotels.
These hotels are patronized by business men
and high income tourists.
These hotels are centrally located and at a
convenient distance from markets, railway
station, airport, etc.

6. 
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SUBURBAN HOTELS: These hotels are located
in the suburb of cities, moderately priced and
are of mostly medium, large or small size.
Normally these hotels are patronized by low
budget tourists.
The tourists who do not want to stay in the
heart of city as they want to be away from
hustle and bustle of city, prefer these hotels.
Usually writers, poets, low budget tourists etc
prefer to stay at suburban hotels.

7. 
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AIRPORT HOTELS: These are Hotels located near
the Airports, especially international airports.
Airport Hotels are popular because of their
proximity to major travel centers.
Airport Hotels vary widely in size and level of
services.
Typical target market includes business clientele,
airline passengers with overnight travel layovers
or canceled flights and airline personnel.
Hotel owned courtesy vans often transport
guests between the hotel and the airport.

8. 
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MOTELS: Motels are also called Motor Hotels or
transit hotel and are located alongside the
highways.
Motels are normally economical and they provide
comfortable bedrooms that motorists prefer to
stay on their way for a night rest.
Motels have facilities of proper motor garage to
service a car and a filling station to refill vehicles,
parking area for motor vehicles etc.
They also have road maps, dormitory for drivers.
These days Motels also provide various indoor
and outdoor facilities like Video parlor, Billiards,
Table tennis, Cyber café, Library etc.

9. 
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RESORT HOTELS: A resort located in the tourist
interest places like hills, forests, beaches, on an
island, or in some other exotic location away from
crowded residential areas.
The recreational facilities and breathtaking scenery
typical of most resorts.
Most resort hotels provide extensive food and
beverage, valet and room services, sight seeing to
vacationers.
Many resorts also provide special activities, indoor
and outdoor games for guests such as
dancing, golf, tennis, horse riding, nature
hikes, skiing and swimming, health club, steam sauna
bath, spas etc.
A more leisurely, relaxed atmosphere distinguishes
most resort hotels from other types of hotels.

10. 
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ROTELS: The hotels which rotate on wheels are
called rotels. It is also called motel on wheels.
Best example of rotel in India is Palace on wheels.
It is a luxurious train, fully air-conditioned, wellfurnished with attached restaurant and bar. The
fare is inclusive of train ticket, food, alcoholic
beverages and sight seeing. The train starts from
Delhi and covers the tourist interest places of
Rajasthan and Uttar Pradesh including Taj Mahal,
Agra, Mathura.
In Japan Rotels are parked in the parking slot in
the late evening and during day the rotel is towed
away.

11. 
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FLOATELS: The hotels which floats on water
are called floatels. The best examples of
floatels in India are House boats in Kashmir
Dal Lake. These are luxurious suites
consisting of drawing room, dining room, bed
room, sitting
room, balcony, kitchen, bathroom etc.
These days luxury ships are becoming
popular for travelling. The guests are offered
cabins to stay. These float on sea water and
these have all facilities of five star hotels.

12. 
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BOATELS: These are luxury boats/yachts
which can ferry people from one place to
another. The best example of yachts are in
Mediterranean or Caribbean, they can ferry
guest through canal-based narrow boat or
Broad-based cabin cruiser.
In Sirhand, Punjab there is restaurant on boat.

13. 
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TIME SHARE: This is a new concept in India but is
picking up very fast.
This is also known as „Vacation Ownership‟ or
„Holiday Ownership‟ concept.
These properties are in resort areas like
hills, beaches, forests etc.
Time share involves individuals who purchases the
ownership of accommodation for a specific week
or weeks.
The price of the property will depend on the
week, one tends to buy.
The guest can choose a peak season, semi peak
season or a lean season.

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The owner pays a fixed price for certain number of
years say 20 to 30 years and has a right to stay at the
hotel during rented week.
The guest also required to pay an annual contribution
towards the maintenance of apartment and public
areas, electricity, gas, water, safety, insurance etc.
The owner can also rent out the unit through
management.
The owner can also exchange their resort with any
other resort either directly owned by the company or
through contract signed with any other
company/management by paying a nominal fee.
Best example of Timeshare in India are Mahindra
Holidays,Sterling Holiday Resorts, Avelon Resort,
Nanda Tourist Corporation etc.

15. 
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CONDOMINIUM HOTELS: These are quite similar
to Time share. These units are developed on joint
ownership basis.
Each owner purchases and has full right of an
unit he has purchased and shares the cost
common to the complex, such as taxes,
insurance, maintenance and upkeep of public
areas including swimming pool, health club,
parking, security, air conditioning, heating, cable,
broad band etc.
Each owner can occupy or sell his unit
independently but is required to follow the rules
and regulations laid by the management.

16. 
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In some cases the management can help the
owner in renting out the property.
They take the full responsibility of the
owner‟s units safety and also pay to the
owner a major portion of the rent earned
from renting out.
The management earns a major portion by
renting out conference hall and from
catering.
Usually the management requests the owner
to rent out in case of major conferences.

17. 
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CHAIN HOTELS: A chain is usually classified as
operating under a management contract or as a
franchise or referral group.
Chains usually make certain rules regarding
standards, rules, policies, procedures of affiliation etc.
In general, the more centralized the organization the
stronger the control over the individual property.
Some chains own affiliated properties, but many do
not.
Some chains have strong control over the
architecture, management and standards of affiliated
properties.
Other chains only concentrate on
advertising, marketing, purchasing.

18. 
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INDEPENDENT HOTELS: Independent hotels do
not have ownership or management affiliation
with other properties.
They have no relationship to other hotels
regarding policies, procedures, financial
obligations, management, accounting etc.
These may be registered as sole proprietor-ship
or a private limited company.
The owner may decide the standard, type of
clientele, the tariff etc.
He may tie up with travel agencies to sell his
property against commission.

19. 
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MANAGEMENT CONTRACT: Management companies
are organizations that operate properties owned by
others.
Those other hotels may be owned by individual
persons, partnerships or private limited companies.
The individual hotel, under construction, may
contract with a professional hotel management
company to operate the proposed property.
These contracts are normally on a long-term basis.
Some management companies, when feel that they
must have a hotel in a particular location then they
approach prospective individuals to build a hotel and
operate under their managements contract.

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The management contract can even be signed
before the construction starts.
After paying the management fees, operating
expenses, the owners keep the balance cash
for paying their debts, taxes etc. and the
balance is their net profit.
The Management companies only take over
the management of the company, whereas
the franchising companies provide the
financial assistance, advertising, central
reservation facilities, marketing etc.

21. 
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FRANCHISE: Franchise is a system in which the
franchise owner grants another the right or
privilege to merchandise a product or service for
a specified return.
Franchise Agreement is an agreement under
which the owner operates as a member of the
chain, utilizing the brand image, name, goodwill
and obtaining for a certain fee some services of
marketing and operating nature support from
resources of a large organization, advertising,
sales promotion, technical and financial help etc.
The best known franchising companies are
Holiday Inn, Choice International, Quality Hotels
& Inns etc.

22. 
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Referral Groups: referral Groups consists of
independent hotels which have grouped together for
some common purpose.
Though the properties in the referral group may be
different from each other but there is sufficient
consistency in the quality of service to satisfy guest
expectations.
The member hotels recommend guests to other
member hotels.
Best Western International, one of the largest hotel
chains is the best example of referral groups.
The referral groups also extend benefit of more
extensive reservation and expanded advertising
through pooled resources.

23. ON THE BASIS OF LENGTH OF STAY:
TRANSIT HOTELS: Motels and airport hotels are the
best example of these hotels.
 These hotels are patronized by those guests who are
in transit and will be travelling further to their
destinations.
 Some times these hotels also charge room rent for
half a day as guests would like to stay just for a few
hours.
 At times these hotels have much more than 100%
occupancy.
 In India the motels have not become very popular as
people do not travel very long distances by their own
vehicles.

24. 
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TRANSIENT HOTELS: Rest
houses, Government guest houses etc are the
best examples of transient hotels.
In these hotels one is not allowed to stay for
a very long time as these hotels are very
economical and are patronized by the
employees either on transfer or on tour or on
vacations.

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RESIDENTIAL HOTELS: These hotels offer
rooms/apartments on monthly basis and even if
a guest stays for a part of the month, is normally
charged for the full month.
The best examples for these hotels are hostels,
paying guest houses for students, trainees,
working people etc.
Some big companies also hire them for
months/years for their company executives for
pleasure, business, training etc.
These can be located in any part of the country, it
may be a hill station, beach etc. for pleasure or a
big city or an industrial town for business.

26. 
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SEMI RESIDENTIAL HOTELS: Most of the hotels
in present days are semi residential hotels
and are located through out the country.
The guests, staying in these hotels, are
required to pay room rent on daily basis.
guest may hire the accommodation for
months or years together but the rent
charged will be on daily baiss.
The hotel may offer a special allowance on
room rent to these guests.

27. ON THE BASIS OF CLIENTELE:
HOSTELS: The students hostels are very common
both in schools and colleges.
 These can only be patronized by the students of
a particular school or college.
 The hostels can also be attached to offices,
banks etc.
 These are also called residential hotels as they
charge on monthly, half yearly or yearly basis.
 These hostels provide nutritive food, keeping in
view the needs of the residents.

28. 
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Heritage Hotels: The Government of India to
boost up tourism and to preserve the India
heritage, has started a scheme, where old
heritage buildings, palaces constructed
before 1935 were converted into hotels.
Heritage Grand Hotels are those which are
more than 100 years old.

29. 
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BOUTIQUE HOTELS: These are very small and
very expensive hotels and mainly cater for
elite class.
Though the hotel is small but still it has more
number of restaurants. Each one is decorated
keeping in view a theme and the food served.

30. 
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ALL SUITE HOTELS: The All-suite concept a
new addition to the hotel industry.
These suites provide living
room, bedroom, kitchenette etc.