Hotel is a place where a benefice traveler can receive food and shelter. He is in a position to pay for it and he is in a fit condition to be received.


Classification of hotel:

Hotel can be classified depending upon factors such as:

  • Size,
  • Location,
  • Type of Clientele
  • Length of Guest Stay
  • Type of plan
  • Facility that it offers


(1) Size-wise classification:

Hotel with 25 or less rooms are called small hotel.

Hotel with 25 to 100 rooms are called medium hotel.

Hotel with 100 to 300 rooms are called large hotels.

Above 300 is called very large hotel.


(2) Location-wise classification:

Down-town : Down-town/City hotel/Commercial hotels, these types of hotels are situated in the hearts of the city. Rates are normally very high and businessmen afford these kinds of hotels. {Down-town hotel:- It is located in the heart of the city within a short distance of the business contra, shopping areas, theatres, public buildings etc. Rates in these hotels are normally high due to their location advantage and also due to the fact that the rate of return on investment (R01) computed on this capital an intensive hotel is substantially high. Normally business clientele prefer such hotels.}

Resort hotel located in the hill area or beeches. {Resort Hotel:- This type of hotel is located in the hills or at beaches. It is mainly patronized by vacationers. Basic facilities are provided and the rates offered are often on American plan, i.e. room plus all meals included.}

Transit hotel situated near railways, sports, airports. Ideal for transit passengers. { Airport Hotel:- As the name suggests, these hotels are situated at the airport and are ideal for transit passengers who have only a few hours in the city making it impossible for them to stay in a downtown hotel. Rates are on European plan, i.e. charges for room only.}

Motels located near highways. Motel means parking and hotels. { Motel:- This term is derived from phrase, “motor hotels”, which are located principally on highways. They provide modest board and lodging to highway travelers. The length of stay is usually overnight, thus rates quotes are on European plan, i.e. room only.}

Rotel means moving hotel.

Floatel means floating in water, the rates are very high. Exam. – Star cruise, Star Virgo.

Bed and Breakfast hotel:- This type of hotel is also known as ‘B’ and ‘B’ hotel. It has 20 to 30 rooms, usually owner of the ‘B’ and ‘B’ lived on the premises and it is their responsibility to serve the breakfast to the guest.

Time share Hotel:- Time share hotel may be defined as an individual to purchase the ownership of that property for us specific period of time. Within that time he or she can do business in that property. In a time share hotel there may be multiple owner.

Condominium Hotel:- In a condominium hotel there is a single owner an individual trance the hotel in a rented presentations and that individual has a full right to do business on that property.

Casino Hotel:- This type of hotel gambling facility.

Convention Hotel:- Convention hotel is a large hotel where more than two thousand room is there and it is used for large convention.

Suburban Hotel:- Located in the suburbs, it has the advantage to low. Such hotels are ideal for budget travelers and also organizations who fine the quiet setting ideal for conferences, seminars, educational programs etc.

Inns:- They are smaller in size with modest board and lodging facilities. They may be located anywhere within or outside the city. They are the forerunners of the modern motel.


(3) Type of Clientele:- Group hotel, Commercial hotel, Family hotel etc.


(4) Length of Guest Stay:- 1. Transient hotel.                                                                                  2. Residential hotels where guest stay for a minimum period of one month the hotel signs a detailed lease with the customer.


(5) Type of plan:- EP, CP, AP, MAP and Go Plan.


(6) Facilities the hotels offers:- Facilities offered by hotels may be the most important criteria for classifying hotels.


Some countries adopt the star rating system. They may be excluded 4 a variety of reasons such as cost, level of business etc.

  • According to the levels of Service
  1. World class Service Hotel:- There are sometime called ‘Luxury service’. Guest come in this type of hotel are businessmen, entertainment celebrate, political figer etc. In this type of hotel there are more than one restaurant, bars, coffee shop etc. In the guest room there are fax machine, P.C, music system etc.
  2. Mid-range service Hotel:- These hotels are specified for middle class people. This hotel gives sufficient but modest service like F & B room service, laundry service, a small restaurant etc.
  3. Economy/limited service Hotel:- These type of hotels include minimum service to meet the basic needs of the travelling guest. The room rate is chief and with minimum amenities.


  • According to the ownership and affiliation
  1. Independent Hotel:- These hotels have a single of multiple owner who compiles and controls them efficiently to run the hotel. The advantage of these kinds of hotel is autonomy. So, it enjoys the brought advertising exposes.

Exam. – Hotels senator, Hotel as for in Kolkata.

  1. Chain Hotel:- These hotels are controlled by a particular company. They have many hotels throughout the country as well as in some foreign country also. They mainly concentrate on advertising marketing etc.

Exam. – Taj Group of Hotel, ITC.

  1. Management contracts: – Management company who operates employers’ rules and regulations of the hotel that has a separate owner. This type of hotel can be called as a management contracts hotels.

Exam. – Park sarovar, Plaza- Peerless inn.

  1. Franchise and Referral Group:- Franchise may be defined as a method of distribution of entity so as to develop the marketing pattern of business.

Referral Group- Referral Group consists of independent hotel which have banded together for common purpose.



Heritage Hotel means a type of hotel which is built a praises, castle, fort, have lies, hunting, lodges and it should be built before 1950. Any extension improvement should be done keeping similarity with the traditional style and it should be done 50% of the total hotel built up.

  1. General Heritage hotel (Built before 1950 minimum, 5 rooms and 10 beds)
  2. Heritage classic (Built before 1935 minimum, 15 rooms and 30 beds).
  3. Heritage Grand (Built before 1920, rooms 15, 30 beds).


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