Hotels are classified according to the hotel size, location, target markets, levels of service, facilities provided, number of rooms, ownership and affiliation etc.
1. Size – Or number of rooms
Under 200 rooms
200 to 399 rooms
400 to 700 rooms
More than 700 rooms
The above categories enable hotels of similar size to compare operating procedures and statistical results.
2. Target Markets
Hotel targets many markets and can be classified according to the markets they attempt to attract their guests. The common type of markets includes business, airport, suites, residential, resort, timeshare, casino, convention and conference hotels.
Business Hotels: These hotels are the largest group of hotel types and they primarily cater to business travellers and usually located in downtown or business districts. Although Business hotels primarily serve business travellers, many tour groups, individual tourists and small conference groups find these hotels attractive. Guest amenities at business hotels may include complimentary newspapers, morning coffee, free local telephone calls, Breakfast etc.
Airport Hotels: These type of hotels typically target business clientele, airline passengers with overnight travel layovers or cancelled flights and airline crews or staff. Some hotels might give free transport between hotel and airport. Some Airport hotels also charge the guest by the hour instead of normal daily night charges.
Suite Hotels: These kind of hotels are the latest trend and the fastest growing segments of the hotel industry. Such hotels have a living room and a separate bedroom. Professionals such as accountants, lawyers, businessmen and executives find suite hotels particularly attractive as they can work and also entertain in an area beside the bedroom.
Extended Stay Hotels: Extended stay hotels are somewhat similar to the suite hotels, but usually offers kitchen amenities in the room. These kind of hotels are for long-stayers who want to stay more than a week and does not want to spend on hotel facilities.
Serviced Apartments: Serviced Apartment / Residential hotels provide long-term or permanent accommodation for Guest. Usually guest makes a lease agreement with the hotel for the minimum of one month up to a year. Rooms generally include living room, bedroom, kitchen, private balcony, washing machines, kitchen utensils etc. Unlike normal hotels Serviced apartment only provide weekly one housekeeping service.
Resort Hotels: Resort hotels are usually located in the mountains, on an island, or in some other exotic locations away from cities. These hotels have recreational facilities, scenery, golf, tennis, sailing, skiing and swimming. Resort hotels provide enjoyable and memorable guest experiences that encourage guest to repeat to the resort.
Bed and Breakfast / Homestays: These are houses with rooms converted into overnight facilities, this can size up to 1 to 10 guest rooms. They are also known as ‘Home Stay’s’. The owner of the B&B usually stay on the premises and is responsible for serving breakfast to the guest.
Timeshare / Vacation Rentals: Another new type or segment of the hospitality industry is the timeshare hotels. These are sometimes referred to as » Vacation-interval» hotels. Timeshare hotels are where the guests who purchase the ownership of accommodations for a specific period. These owners may also have the unit rented out by the management company that operates the hotel.
Casino Hotels: Hotels with gambling facilities are called Casino Hotels. Although the food and beverage operations in the casino are luxurious their functions are secondary to and supportive of casino operations.
Conference and Convention Centres: These type of hotels focus on meeting and conferences and overnight accommodation for meeting attendees. They also provide video conferencing facility, audiovisual equipment, business services, flexible seating arrangements, flipchart etc. These hotels mostly located outside the metropolitan areas and have facilities like golf, swimming pools, tennis courts, fitness centres, spas etc.
3. Levels Of service
World class service: These are also called luxury / Five Start hotels, they target top business executives, entertainment celebrities, high- ranking political figures, and wealthy clientele as their primary markets. They provide upscale restaurants and lounges, Valet, concierge services and also private dining facilities.
Mid-Range Service: Hotels offering mid-range or otherwise 3 to 4-star hotels service appeal the largest segment of the travelling public. This kind of hotels does not provide elaborate service and have a adequate staffing. They also provide uniformed service, food and beverage room service, in-room entertainment’s and also Wi-Fi etc.
Budget / Limited Service: These hotels provide clean, comfortable, safe, inexpensive rooms and meet the basic need of guests. Budget hotels appeal primarily to budget-minded travellers who want a room with minimum services and amenities required for the comfortable stay, without unnecessary paying additional cost for costly services.
4. Ownership and Affiliations
Independent / Single Owner Hotels: They do not have identifiable ownership or management affiliation with other properties. Example of the same would be family owned and operated hotel that is not following any corporate policies or procedures.
Chain hotels: Hotels which are part of a hotel chain and these kinds of ownership usually imposes certain minimum standards, rules, policies and procedures to restrict affiliate activities. In general the more centralised the organisation the stronger the control over the individual property .