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Classification of Hotels

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Classification is based on many criteria and classifying hotels into different types is not an easy task. The hotel industry is so vast that many hotels do not fit into single well defined category. Industry can be classified in various ways, based on location, size of property etc.
The main hotel chains of India are: The Taj Group of Hotels, the Oberoi Group and ITC Welcome group.


Some of the international chains are Hyatt, Marriott, and Le Meridien etc. these properties have also come up in India now.


1. Based on location

  • City center: Generally located in the heart of city within a short distance from business center, shopping arcade. Rates are normally high due to their location advantages.They have high traffic on weekdays and the occupancy is generally high.
    Example: Taj Mahal, Mumbai

  • Motels: They are located primarily on highways, they provide lodging to highway travelers and also provide ample parking space. The length of stay is usually overnight.
  • Suburban hotels: They are located in suburban areas, it generally have high traffic on weekend. It is ideal for budget travelers. In this type of hotel rates are moderately low.
  • Airport hotels: These hotels are set up near by the airport. They have transit guest who stay over between flights.

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  • Resort hotels: They are also termed as health resort or beach hill resort and so depending on their position and location. They cater a person who wants to relax, enjoy themselves at hill station. Most resort work to full capacity during peak season. Sales and revenue fluctuate from season to season.

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  • Floating hotels: As name implies these hotels are established on luxury liners or ship. It is located on river, sea or big lakes. In cruise ships, rooms are generally small and all furniture is fixed down. It has long stay guest.

  • Boatels: A house boat hotels is referred as boatels. The shikaras of Kashmir and kettuvallam of kerala are houseboats in India which offers luxurious accommodation to travelers.

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  • Rotels: These novel variants are hotel on wheel. Our very own "palace on wheels" and "Deccan Odessey" are trains providing a luxurious hotel atmosphere. Their interior is done like hotel room. They are normally used by small group of travelers.

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2. Based on Size of Property


The main yardstick for the categorization of hotel is by size the number of rooms
available in the hotel.
  • Small hotel: hotel with 100 rooms and less may be termed as small hotels.

  • Medium sized hotel: hotel which has 100-300 rooms is known as medium sized hotel.
  • Large hotels: hotel which have more than 300 rooms are termed as large hotels.
  • Mega hotels: are those hotels with more than 1000 rooms.
  • Chain hotels: these are the group that have hotels in many number of location in India and international venues.


3. Based on the Level of Service

Hotels may be classified into economy, and luxury hotels on the basis of the level of
service they offer.

  • Economy/ Budget hotels: These hotels meet the basic need of the guest by providing comfortable and clean room for a comfortable stay.
  • Mid market hotels: It is suite hotel that offers small living room with appropriate furniture and small bed room with king sized bed.
  • Luxury hotels: These offer world class service providing restaurant and lounges, concierge service, meeting rooms, dinning facilities. Bath linen is provided to the guest and is replaced accordingly. These guest rooms contains furnishing, artwork etc. prime market for these hotels are celebrities, business executives and high ranking political figures. Example: Hyatt Regency, New Delhi.

4. Based on the Length of Stay

Hotel can be classified into transient, residential and semi residential hotels depending
on the stay of a guest.

  • Transient Hotel: These are the hotel where guest stays for a day or even less, they are usually five star hotels. The occupancy rate is usually very high. These hotels are situated near airport.
  • Residential hotels: These are the hotel where guest can stay for a minimum period of one month and up to a year. The rent can be paid on monthly or quarterly basis. They provide sitting room, bed room and kitchenette.
  • Semi residential hotels: These hotels incorporate features of both transient and residential hotel.

5. Based on Theme

Depending on theme hotel may be classified into Heritage hotels, Ecotels, Boutique
hotels and Spas.

  • Heritage hotel: In this hotel a guest is graciously welcomed, offered room that have their own history, serve traditional cuisine and are entertained by folk artist. These hotels put their best efforts to give the glimpse of their region. Example: Jai Mahal palace in Jaipur.
  • Ecotels : these are environment friendly hotels these hotel use eco friendly items in the room. Example: Orchid Mumbai is Asia first and most popular five star ecotel.
  • Boutique hotels: This hotel provides exceptional accommodation, furniture in a themed and stylish manner and caters to corporate travelers. Example: In India the park Bangalore is a boutique hotel.
  • Spas: is a resort which provide therapeutic bath and massage along with other features of luxury hotels in India Ananda spa in Himalaya are the most popular Spa.

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6. Based on Target Market

  • Commercial hotel: They are situated in the heart of the city in busy commercial areas so as to get good and high business. They cater mostly businessmen.

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  • Convention hotels: These hotels have large convention complex and cater to people attending a convention, conference

    Example: Le meridien, Cochin, is a hotel with largest convention center in south India.
  • Resort hotels: These leisure hotels are mainly for vacationers who want to relax and enjoy with their family. The occupancy varies as per season. The atmosphere is more relaxed. These are spread out in vast areas so many resorts have solar powered carts for the transport of guest.
  • Suite hotels: These hotel offer rooms that may include compact kitchenette. They cater to people who are relocating act as like lawyers, executives who are away from home for a long business stay.


  • Casino hotels: Hotel with predominantly gambling facilities comes under this category, they have guest room and food and operation too. These hotels tend to cater leisure and vacation travelers. Gambling activities at some casino hotels operate 24 hours a day and 365 days a year.


Example: Las Vegas in United State is Famous for Casino hotels.


  1. lucyinthesky saidFri, 23 Jan 2009 14:43:02 -0000 ( Link )

    Extremely interesting lesson…I had no idea hotels could be classified in so many ways!

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  2. tappy saidSun, 25 Jan 2009 11:01:49 -0000 ( Link )

    great lesson!!!!!!!! i got everything in it.

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  3. krishnarules saidSun, 25 Jan 2009 11:55:50 -0000 ( Link )

    ITS awesome…..!

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  4. aki_kumar saidWed, 28 Jan 2009 13:06:36 -0000 ( Link )

    its provide gud information abt hotels…......!

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  5. PCHAWLA saidFri, 30 Jan 2009 11:17:06 -0000 ( Link )

    very nicely explained point by point…with appropriate images..

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  6. PINKCHAWLA saidFri, 30 Jan 2009 12:11:37 -0000 ( Link )

    nice information given..

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  7. abhijeet_3256 saidSat, 31 Jan 2009 12:04:59 -0000 ( Link )

    Thanks a lot :)))) i hope this lesson has helped you to know different types of hotels.

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  8. traun_marwah saidSun, 01 Feb 2009 13:57:51 -0000 ( Link )

    Definitely it was helpful. Would have been more useful if I was still in my 1st year :). 1st years guys wld love it :).

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  9. Rayan saidFri, 17 Apr 2009 02:58:51 -0000 ( Link )

    I`m realy happy that I did find this pag. It very helpful

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  10. leidee saidMon, 10 Aug 2009 12:08:45 -0000 ( Link )

    ..im confused about this classifications..because it is different from other calssifications stated by other sites.

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  11. siddy1008 saidSun, 30 Aug 2009 09:10:22 -0000 ( Link )

    Really nice classifications…. thanks. :-)

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  12. aishadaga saidWed, 18 Nov 2009 05:13:27 -0000 ( Link )

    :) well done…easy to understand and you got all the main points…thanks!!

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