Chapter 2

Classification of
Hotels
Chapter 2 Classification of Hotels

Learning Objective
Type of Hotels

Heritage Hotels and Palaces

Types of Supplementary accommodation

Chapter 2 Classification of Hotels

Introduction, background and

Eligibility for classification
Hotel is an important part of hospitality industry.
It has now attained a much higher status in society
and demands high standards of work ethics and
efficiency from its employees.
To ensure a certain level of standardisation in
products and services hotels globally are classified on
various parameters which can include the location,
facilities, affiliation inter alia.
Chapter 2 Classification of Hotels

Introduction, background and

Eligibility for classification
The Star classification is provided by Hotel and
Restaurant Approval and Classification Committee
(HRACC), Department of Tourism in India.
The classification can be applied by existing and well
as new hotels in a prescribed time frame.

Chapter 2 Classification of Hotels

Classification on the basis of Target

Markets
Business Hotels
1. caters primarily to business travellers
2. Usually located in the downtown or business districts
3. Guest amenities at business hotels include
complimentary newspapers, morning coffee, free
local telephone calls, break fast etc.
4. Access to business centre, Wi-Fi and fax machines
are provided to guests
Chapter 2 Classification of Hotels

Classification on the basis of Target

Markets
Airport Hotels
1. Typically target business clientele, airline passengers
with overnight travel layovers or cancelled flights and
airline personnel
2. May offer free transport between hotel and airport
3. Provide meeting facilities for guests who travel to a
meeting by air and wish to minimize ground travel
4. Instead of charging guests by day basis, the guests
can also pay for their
room by hourly basis
6
Chapter 2 Classification of Hotels

Classification on the basis of Target

Markets
Suite Hotels
1. Latest trend and the fastest growing segments in the
hotel industry
2. Guestroom with a living room and separate bed room

3. Generally have fewer and more limited public areas

4. Guests categories are professionals, accountants,
lawyers who look for work as well as entertain in an
area besides the bedroom
Chapter 2 Classification of Hotels

Classification on the basis of Target Markets

Extended Stay Hotels
1. Similar to suite hotels but usually offers kitchen as a
part of amenities
2. Relevant for travellers who want to stay for more than
a week
3. Travellers who do not want to depend on service of
the hotel
4. This hotels do not provide any F&B service or
laundry service
5. Considered as Home
away from home
Chapter 2 Classification of Hotels

Classification on the basis of Target Markets

Apartment Hotels
1. Provide long term / near permanent accommodation
2. Guest makes a lease agreement with the hotel for
minimum of one month up to a year
3. Lease agreements are renewed on a yearly basis

4. Guest rooms include living room, bedroom, kitchen,

balcony etc
5. Housekeeping, laundry, telephone, restaurant and
lounge may be provided by some hotels
Chapter 2 Classification of Hotels

Classification on the basis of Target

Markets
Resort Hotels
1. Usually located in the mountains, on an island
2. These hotels have recreational facilities, scenery,
golf, tennis, sailing and other entertainment facilities

3. Provide enjoyable and memorable guest experiences

that encourage guest to repeat the resort

Chapter 2 Classification of Hotels

10

Classification on the basis of Target Markets

Bed and Breakfast Hotels
1. Houses with rooms converted into overnight facilities

2. The size can be 20-30 guest rooms

3. The owner of B&B stays on the premises and is
responsible for serving breakfast to guest
4. On account of limited service the price for room is
very less in comparison to full service hotel
Chapter 2 Classification of Hotels

11

Classification on the basis of Target Markets

Timeshare and Condominium Hotels
1. Guest who purchase the ownership of
accommodations for a specific period
2. Owners may also have the unit rented out by the
management company that operate the hotel
3. Units in condominium hotels only have one owner
instead of multiple owners, each for a limited amount
of time each year
4. An owners inform the management company if when
he / she wants to occupy the unit
Chapter 2 Classification of Hotels

12

Classification on the basis of Target

Markets
Casino Hotels
1. Hotels with gambling facilities
2. Food and beverage operations in casino is luxurious
their functions is secondary to and supportive of
casino operations
3. Casino hotels attract guest by promoting the
gambling and other entertainments
Chapter 2 Classification of Hotels

13

Classification on the basis of Target

Markets
Conference Centres
1. This hotels focus on meeting and conferences and
overnight accommodation for meeting attendees

2. Provide high quality audiovisual equipments,

business services, flexible seating arrangements
3. Hotels mostly located outside the metropolitan areas
4. Have facilities like golf, swimming pools, tennis
courts, fitness centres, spas
Chapter 2 Classification of Hotels

14

Classification on the basis of Target Markets

Convention centres
1. Larges in size compared to conference centres

2. Likely t have more than 1500 rooms

3. Hotels are huge and have sufficient number of guest
rooms to house all the attendees
4. Usually cater to convention market for state, regional,
national and international association
Chapter 2 Classification of Hotels

15

Classification on the basis of Levels of

Service
World class service
Also called a luxury hotels
Target top business executives, entertainment
celebrities, high ranking political parties etc.
Provide upscale restaurants and lounges, concierge
services and also private dining facilities

Chapter 2 Classification of Hotels

16

Classification on the basis of Levels of

Service
World class service
Guest rooms are oversized, heated and plush bath
towels, large soap bars, shampoo, shower caps and
all amenities
Housekeeping services are give two times a day
including turn-down service
Guests are provided personalised services
Chapter 2 Classification of Hotels

17

Classification on the basis of Levels of

Service
Mid-range service
Appeal to the largest segment of the travelling public
Does not provide elaborate service and have an
adequate staffing
Also provide uniformed service, food and beverage
room service

Chapter 2 Classification of Hotels

18

Classification on the basis of Levels of

Service
Mid-range service
Property may offer a speciality restaurant, coffee
shop and lounge

Typical guests are business people, individual

travellers and families
Rates are lower than luxury hotels as they provide
fewer services, smaller rooms and a smaller range of
facilities and recreational activities
Chapter 2 Classification of Hotels

19

Classification on the basis of Levels of

Service
Economy / Limited Service

1. Hotels provide clean, comfortable, safe, inexpensive

rooms and meet the basic need of guests
2. These hotels appeal primarily to budget minded
travellers
3. The cliental may include families with children,
travelling business people, back-pakers, vacationers
retirees
Chapter 2 Classification of Hotels

20

Classification on the basis of Ownership and

Affiliations
Independent Hotels
1. Do not have identifiable ownership or management
affiliation with other properties
2. Properties dont have any relationship to another
hotel regarding policies, procedures marketing or
financial obligations
3. Advantage of individual property is autonomy
4. An independent hotel however does not get the
advantage of board advertising exposure or
management insight
Chapter 2 Classification of Hotels

21

Classification on the basis of Ownership and

Affiliations
Chain Hotels
1. Ownership usually imposes certain minimum
standards, rules, policies and procedures to restrict
affiliate activities
2. More centralise the organisation the stronger the
control over the individual property
3. Some chains have string control over the
architecture, management and standards of affiliate
properties
Chapter 2 Classification of Hotels

22

Classification on the basis of Ownership

and Affiliations
Time Share
Also known as vacation ownership or holiday
ownership

Properties are in resort like areas like hills, beaches,

forests
Involves individuals who purchase the ownership of
accommodation for a specific week or weeks
Chapter 2 Classification of Hotels

23

Classification on the basis of Ownership

and Affiliations
Time Share

Guest chooses a peak season, semi peak season or

a lean season
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 nominal fee
Chapter 2 Classification of Hotels

24

Classification on the basis of Ownership and

Affiliations
Condominium
Similar to time share

Developed on a joint ownership basis

Owner has full right of an unit he has purchases

Chapter 2 Classification of Hotels

25

Classification on the basis of Ownership and

Affiliations
Condominium
Owner can occupy or sell his unit independently but
required to follow the rules and regulations laid by
the management
Management can help the owner renting out the
property
The management earns a major portion by renting
out conference hall and from catering
Chapter 2 Classification of Hotels

26

Classification on the basis of Ownership

and Affiliations
Management Contract
Hotels may be owned by individual persons,
partnerships or companies, however operated by
Management Companies
The contracts are generally on a long term basis

Chapter 2 Classification of Hotels

27

Classification on the basis of Ownership

and Affiliations
Management Contract
The management contract can be signed even
before the construction starts

After paying management fees, operating expenses

owners keep the balance as profit

Chapter 2 Classification of Hotels

28

Classification on the basis of Ownership

and Affiliations
Franchise
1. Owner operates as a member of the chain of hotels
under the franchise agreement
2. Utilises brand, goodwill and with fee some services
of marketing
3. Operating nature support from resources of a large
organisation available
4. E.g. Holiday Inn, Choice International
Chapter 2 Classification of Hotels

29

Classification on the basis of Ownership

and Affiliations
Referral Groups
Consists of independent hotels which have grouped
together for some common purpose
Properties differ from each other however the quality
of service is sufficiently consistent

The member hotels recommend guest to other

member hotels
Referral groups also extend benefit of more
extensive reservation and expanded advertising
through pooled resources
Chapter 2 Classification of Hotels

30

Classification on the basis of Location

City Downtown / Commercial hotels
Hotels are located in the heart of the city

Hotels are more expensive than the suburban hotels

Hotels are patronized by business men and high
income tourists
Centrally located and at a convenient distance from
markets, airports
Chapter 2 Classification of Hotels

31

Classification on the basis of Location

Suburban Hotels
Hotels are located in suburb of cities

Moderately priced
Mostly medium, large or small size

Normally patronizes by low budget tourists

Usually writers, poets low budget tourists prefer to
stay at suburban hotels
Chapter 2 Classification of Hotels

32

Classification on the basis of Location

Rotels
1. Hotels that rotate on wheels are called Rotels

2. Also called motels on wheels

3. Example could be luxurious train, fully AC and well
furnished with an attached restaurant and bar

Chapter 2 Classification of Hotels

33

Classification on the basis of Location

Motels
1. Motels is a contraction of motor hotel
2. It a lodging that caters primarily to guests arriving by
automobiles
3. Motels are located in any setting, but are usually
found in suburban or roadside areas
4. Motels can be two story or low rise building located
near major highways
5. Motels may contain pool areas with shrubbery tree
and children play ground
34
Chapter 2 Classification of Hotels

Classification on the basis of Location

Floatels
1. Hotel which floats on water is called floatels
2. House boats in Kashmir Dal lake could be an
example
3. Luxurious suites consisting of drawing room, dining
room, bed room etc
4. Guests are often offered cabins to stay and now a
days luxury ships are becoming popular for travelling
5. Floaters have all Chapter
facilities
similar to five star hotels 35
2 Classification of Hotels

Classification on the basis of Location

Boatels
Luxury boats / yachts which ferry people from one
place to another
Heritage Hotels
1. Initiated by Government to boost tourisms
2. Consists of old buildings and palaces constructed
before 1935 that converted into hotels

Chapter 2 Classification of Hotels

36

Classification on the basis of Clientele

Boutique Hotels

1. Very small and very expensive hotels

2. Mainly cater to the elite class
3. Hotel is small but it may have number of restaurants

Chapter 2 Classification of Hotels

37

Classification on the basis of Clientele

All Suit Hotels
1. A new addition to the hotel industry
2. These suites provide living room, bedroom and
kitchenette

Chapter 2 Classification of Hotels

38

Classification on the basis of Size or

Number of Rooms
1. Small Hotels 25 rooms or less
2. Average Hotels 25 rooms to 90 rooms
3. Above average hotels 80 rooms to 250 rooms
4. Large hotels 250 rooms and above

Chapter 2 Classification of Hotels

39

Summary
Hotel industry is growing on account of growth in
travel and tourism sector
Understanding the classification of hotels provides
the prospective guests a view about the facilities and
services he/she can expect from the Hotel
In addition to old one, new Hotels based on concept
of self help has emerged with limited services at
reasonable rentals

Chapter 2 Classification of Hotels

40