1. Hotels are classified based on size, location, product type, and level of service. They can be full-service, limited-service, specialty accommodations, or institutional housing. 2. Full-service hotels are large properties that provide many amenities like restaurants, bars, meeting spaces, and room service. They include convention hotels, luxury hotels, resorts, extended stay hotels, and condo hotels. 3. Limited-service properties like motels, inns, and budget hotels are smaller and offer fewer amenities at a lower price point than full-service hotels. 4. Hotels can be independently owned, part of a chain where multiple locations share a brand, or franchises owned by

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Chapter 2
Hotel Classifications
Front Office
Operations & Management
By MC
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Hospitality Services : Food & Lodging
By: MC
Chapter 10
The World of Lodging

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Objective
After reading this chapter, you should understand:
How hotels are classified .
Describe the characteristics of full-service hotels, limited-service
properties, specialty accommodations, and institutional
housing.
List the three type of hotel ownership.
Hotel rating system.
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Introduction
• The hotel pioneers discussed set the groundwork for
many of the designs, services, and amenities
considered commonplace today.
• Criteria for identifying hotels are based on:
size location product type
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Hotel Sizes
• The industry use the following to determine a
hotel’s size based on its number of rooms.
Classification Number of Sleeping Rooms
Small 1 to 150
Medium 151 to 400
Large 401 to 1500
Mega 1501 and over
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• Management salaries increase as the number
of guest rooms increase.
• A larger hotel will theoretically be harder to
manage (due to a larger staff, more outlets, and
a greater amount of meeting space).
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• Larger hotel sizes will also necessitate a
greater number of specialized management
positions.
• A large-size hotel many have a front office
manager as well, but reporting to him/her may
be the following: (assistant front office managers, front
des managers, valet manager, concierge manager, PBX
manager, bell captain, parking garage manager, numerous
supervisors, and so on).
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7. Types of Lodging Businesses
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8. • Lodging businesses can be organized into four categories
based on level of service: full-service hotels, limited-service
properties, specialty accommodations, and institutional
housing.
• Full-service hotels pride themselves on their high level of
service and usually charge the highest prices.
• Limited-service properties focus on charging lower prices.
Providing fewer services.
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9. Specialty accommodations vary in their levels of service, but
usually proved less than full-service hotels.
Some specially accommodations provide guest rooms with
private baths, telephones, and televisions.
Institutional housing is provided for people who live in
institutions, such as schools, universities, hospitals, prisons, and
the military.
The names of the properties will include words such as hotel,
inn, motel, motor inn, lodge, resort and bed-and-breakfast.
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10. Full-Service Hotel
• A full-service hotel is large and provides many
services.
• First distinguish feature is architecture, two or
more stories and over 3,000 rooms.
• Second distinguish feature level of service.
Services may included: luggage assistance, concierge service,
one or more restaurants, bars, lounges, room service,
meeting/banquet facilities, spa services, and recreational
facilities. 10

11. • A concierge is a hotel staff member who helps
guest make arrangements, such as dinner
reservations. A concierge also advises guests
on what to do and see in the area around the
hotel.
• Five subcategories of full-service hotels:
convention luxury
condominium resort
extended-stay
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12. Convention Hotels
• Convention hotel is designed to provide for
the special needs of conventions and trade
shows.
• A convention is a large meeting, usually
sponsored by a group for its members.
Number of people attending 50 to 50,000.
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13. • Trade show is an exhibit during which people
who have goods and services to sell show
their goods and services.
• Exhibit hall is the place where trade shows are
held. Must be quite large.
• Convention hotels are often located near a
convention center. A convention center is
locally funded, or privately owned structure
that caters to large meetings, conventions and
trade shows.
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14. McCormick Place in Chicago
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15. Luxury Hotels
• Luxury hotel provides the highest level of
amenities, service, room furnishings, public
spaces, and technology.
• Provide more services, more personal
attention to guests, and more elegance than a
typical full-service hotel.
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16. Resort Hotels
• Resort hotel caters to the vacationer or leisure
traveler.
• A resort is a place that provides
entertainment, recreation, and relaxation for
vacationers.
• Located near seashores, mountains, and hot
springs.
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18. Extended Stay Hotels
• Guests who stay for 5 to 29 days are called
extended stay guests. Long-stay guests stay
for 30 days or more. Normally these are
business people.
• The major characteristic of these hotels is that
they provide kitchen facilities and more than
one room for each accommodation.
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19. • A suite is a hotel accommodation that
consists of more than one room.
• All suite hotels were developed to
provide more space at a lower cost.
• A suite in these hotels is usually tow hotel
rooms joined together. These suites
combine living space with kitchen
facilities.
• Extended-&-long stay suites provide a full
kitchen with dishes and utensils. Some
have grocery shopping service for guests.
• Residential hotels cater to long-stay
guests.
• The décor is usually more like a home with
a kitchen, living area, and bedroom
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20. Condominium Hotels
• New Condo Hotel Apartments at Manor Park
Resort in Hua Hin, Thailand
• They offer many amenities.
They have multi-room
apartments with full
kitchens.
• Usually individually owned.
• Property operated by a
management company.
• Many new, upscale hotels
are being build with condos
above them. The owners
can use the hotels
amenities (room service,
housekeeping).
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21. Park Hyatt in Chicago
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22. Two type of condo ownership:
1. Individual owner.
2. Time-share ownership.
A time share owner own the right to use the
unit for a specific time of the year.
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23. Limited-Service Properties
• Limited service property is smaller, provides
fewer services, and is less expensive than a
full-service hotel.
• A motel is distinguished from a hotel by it
architecture and level of service. Parking is
close to the rooms. Rooms are entered from
the outside and minimal services.
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24. • Motels offer a room with a bed, t.v.,phone,
private bath, and daily housekeeping.
• Many motels have begun to offer pools,
continental breakfast.
• Continental breakfast consists of breakfast
foods that do not need to be cooked.
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25. Inns refer to smaller
hotels.
Offer fewer amenities.
Limited service properties
are organized into two
categories:
limited service hotels
budget hotels
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26. Limited-Service Hotels
Limited Service Hotels offer
a medium level of service and
a midrange price.
Typically have 3 or 4 stories.
Has the word Inn in the name,
and offers more services than
a motel but fewer than a hotel.
No restaurant or bell attendant.
Ex.: LaQuinta Inns, Hampton Inns,
Fairfield Inns
Budget Hotels
• Budget hotels have the lowest
rate and least amount of service.
• Focus on comfortable, clean place
to sleep at the lowest rate.
• Motel 6 was the first of it’s kind
with room for $6 a night in the
1960s.
• Ex.: Microtel is a newer property
of this kind.
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27. Specialty Accommodations
• Conference center…lodging facility, 60% of occupancy is generated by
conference.
• Lodges…rooms and housekeeping for guest to participate in recreational
activities.
• Bed & Breakfast…private home offering one or more guest rooms.
• Hostels…an inexpensive place to stay rooms, kitchen, and bath are shared.
No linen or toiletries.
• Campgrounds…located in natural environment.
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28. Institutional Housing
• Dorms
• Hospitals
• Prisons
• Senior housing
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29. Ownership & Management
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30. Classified by the types of ownership:
independent, chains, franchises
Independent lodging property is a single-unit
business not connected with any other
business. Usually one owner.
The owner could be a single person, a
partnership, or a corporation.
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31. Hotel Chains
• Chains are multiple-unit businesses that have
the same brand name and the same
ownership.
• A franchise is a unit of a chain that has been
purchased by an outside owner. The outside
owner runts the franchise in the way required
by the chain owner.
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32. • Advantages of chains in brand name.
• The chain owner also work to develop brand
loyalty. One way is through frequent guest
programs.
• Ex.: Whenever you stay at a unit of the chain,
you earn points. Like health club privileges or
free nights stay.
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33. • Central Reservation Center is one office that
handles the reservations for all the units in the
chain.
• A guest can call one toll free number to
reserve a room at any hotel in the chain
anywhere in the country or the world.
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34. Hotel Management
• Hotel Management is the day to day running
of the hotel. Hotel management is often
called hotel operation.
• One person (or company) can own the hotel,
and another person (or company) can manage
it.
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35. • As far as customers are concerned, they
identify the owner with the brand name on
the hotel.
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Hotel Location Classifications
• Hotel location types are classified by physical
positioning in relation to the customers in the
area and to their tangible locale.
• Hotel types/location:
Downtown Resorts Highway
Airport Suburban
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Downtown
Hotel Americas Houston, Texas
Located next to the George R. Brown Convention Center (GRB)
Apply to hotels located in
dense urban areas.
Traditionally they are located
in the center of a city’s
business district, near offices
an retail stores and close to
entertainment center.
Many are full service. Usually
attract business travelers
during the week and leisure
travelers on the weekends.
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Suburban
• Suburban hotels developed
because businesses moved to
the suburbs.
• Accommodations were needed
for business meetings,
conventions, and individual
business travelers and social
events.
La Quinta Hotel Kingwood, Texas
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39. Highway
As the highway system
developed, the
demand for lodging
along the highways
developed. Most
accommodations
along with highways
are limited-service
hotels and budget
hotels.
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Airport
• This is the easiest one to identify.
• The airport is the special attraction.
• Commonly provided complimentary shuttle service to and
from the airport to make it easy for the traveler. Hours for the
restaurants, lounges, and other facilities may be longer to
accommodate travelers.
• Multilingual staff a common to assist international travelers.
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• Gateway cities are traditionally those located in an area that make them
the first practical stop for an international flight coming into a country.
• In the USA, Seattle, San Francisco, & LA are gateways for Asia and the far
East.
• NY, Boston, & Washington are gateways to Europe and beyond.
• Miami is gateway to South America.
• Improvements in airplane technology are allowing for longer direct flights
from cities not commonly considered gateways (Chicago, Minneapolis &
Atlanta) are good examples.
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Resort
• Resort can be located near some sort
of special attraction that attracts
guests for a reason other than the
hotel itself. An ocean, natural
wonder, mountain, amusement park,
or golf course can be that attraction.
• Hotel that create their own special
attraction can also be considered
resorts. Health spas, private gold
and/or tennis facilities, expansive
poor areas, and other unique
signature attractions created by the
hotel itself allow for the resort
location classification.
Half Moon Bay Resort in Montego Bay
Jamaica
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Service Level
• A hotel’s service level is measured by the amount of actual
and perceived consideration a guest can reasonably expect to
receive.
• A consumer perceives a value in receiving quality service.
• In the hotel industry, the differences in service levels is often
(but not always) tied to incremental increases in cost.
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Full-service hotels, by definition, provide their guest with services, amenities
and facilities that they want or need to complete a total hotel experience.
Service include but not limited to:
restaurant(s) room service
meeting space business center
health club/rec. facility bell staff
Limited service hotels typically do not offer the above services. The most
notable differences are lack of food or beverage outlets and no meeting
space.
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Target Market
• A target market is the market segment the
lodging business focuses on.
• Market Segments:
business convention/meeting long-stay
leisure budget special
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Independent Hotel Ratings
• A star system is primarily used to denote the level of quality
and service, with one star being the lowest and five stars
being the highest level.
• International travelers can be reasonably confident about
what to expect by using these stars as a guide.
• The criteria by which each hotel is judged may vary from
country to country.
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• In the United States, the government does not
play any role in classifying hotel. This is left up
to independent organizations.
• Magazines, associations and other special
interest groups issue ratings based on their
won criteria.
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48. Lodging & Food Service
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49. • Food & beverage is an essential part of the
lodging’s service in the lodging properties.
• Many have restaurant (casual & fine dining),
snack shops, room service, and cocktail
lounges.
• Limited service properties often offer a
continental breakfast and coffee in the lobby.
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50. • A room rate that includes meals is called a
meal plan.
• Types of meal plan:
Full American…3 meals a day
Modified American…2 meals (breakfast & dinner)
Continental …breakfast that does not have to be cooked
European…no meals
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51. Lodging Concepts
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52. • Lodging concept is the whole idea of the
lodging property or chain. This includes the
theme, target market, décor, ambiance, and
level of service.
• Ex.: End of the Line Vacation Station in Lake
Geneva, Wisconsin, guests can spend the
night in an old caboose or in a Pullman-car
suite.
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