Grouping hotels based on various criteria is known as classification.

Hotel classification serves the following purpose:

  • Lends uniformity in services and sets general standards of a hotel
  • Provide an idea regarding the range and type of hotels available within a geographical location
  • Acts as a measure of control over hotels with respect to the quality of services offered in each category.
  • Helps tourist select a hotel that meets their requirement.

CLASSIFICATION ON THE BASIS OF

  1. Size
  2. Location and clientele
  3. Star
  4. Ownership basis
  5. Degree of service offered

ACCORDING TO SIZE

  • SMALL SIZED HOTEL:  less then 100 rooms
  • MEDIUM SIZED HOTEL: between 100 to 299 rooms
  • LARGE SIZED HOTEL: between 300 to 599 rooms
  • VER LARGE HOTEL: between 600 to 999 rooms
  • MEGA: more than 1000 rooms

ACCORDING TO LOCATION AND CLIENTELE

DOWNTOWN OR COMMERCIAL HOTEL

Location: heart of the city / commercial area or busy business area

Clientele: mostly business man

Facility: modern facilities like 24 hr coffee shop, room service, business centre, travel desk

Avg. duration of stay: 3 to 7 days

TRANSIT HOTEL

Location: near the port of entry like bus stand, railway station, airport, sea port

Clientele: mostly people who are traveling, layover passengers, tourist, misconnection passengers

Facility: moderate to modern facilities

Avg. duration of stay: few hours too few days

RESORT HOTEL

Location: places with natural beauty like hill station, sea beach, forest etc.

Clientele: mostly holiday makers and tourist

Facility: moderate to modern

Avg. duration of stay: a week too few months

MOTEL OR MOTOR HOTEL OR FREEWAY HOTEL

Location: on highways

Clientele: motorist, tourist travelling by road

Facility: moderate to modern facilities

Special features: parking space against each room

Refueling station

Garage facility

Swimming pool

Avg. duration of stay: mostly over night

SUB- URBAN HOTEL 

Location: outskirts of the city or suburb

Clientele: who have to stay for a longer duration, away from the hustle and bustle of the city

Facility: moderate, budgeted

Avg. duration of stay: longer duration, months

FLOATEL

Location: lodging properties that float on the surface of water.

ACCORDING TO STAR CLASSIFICATION/ STANDARD CLASSIFICATION

The Star denotes the standards of the hotel. Department of tourism, govt. of India is responsible for the star gradation. An autonomous body (a committee) is responsible for star gradation of hotels known as Hotel and Restaurant Approval Classification Committee (HRACC), formed by the Ministry of Tourism, Govt. of India.  After receiving the application form from hotel HRACC visits the hotel, check the standards and grade the hotel.  The Department of Tourism prescribes the facilities which are to be provided in various star category hotels. The term for Star Gradation is for two years. The six grades of star are 5*Deluxe, 5*, 4*, 3*, 2* and 1*. The categories of various star hotels have some criteria or facilities, which are called END.

– Essentials (have to have)

– Necessities (should have)

– Desirables (may or may not have)

Following are the members of HRACC:

  • ​Secretary Tourism, Govt. Of India
  • Regional Director of Tourism, Govt. Of India
  • One representative from Federation of Hotels and Restaurants Association of India (FHRAI), who is generally the Secretary of the respective zone (of the four zones).
  • One representative of the Travel Agents Association of India (TAAI), who is generally the Secretary of the concerned region.
  • Director of Tourism of the state concerned
  • Principal of the regional Hotel Management Institute.

(If any of the six members is absent on the day of visit, they are permitted to send their own representatives)

HOTEL STAR RATING GUIDE

ONE  STAR

Typically small hotels , located near affordable attractions, with basic facilities, with a family atmosphere. Limited range and simple facilities and meals. Acceptable standards of maintenance, cleanliness and comfort.

TWO STAR

Economy hotel, small to medium size hotel, located near moderately priced attraction. Guest can expect little more than a one star, like comfortable well equipped room with attached bath, professional staff.

THREE STAR

Moderate hotel, spacious accommodation, well equipped room and decorated lobbies, located near business areas, moderate to high price attractions, usually have medium size restaurant that serves breakfast through dinner. Facilities such as direct dial phone, toiletries, Room service,  and pool are often provided.

FOUR STAR

first class hotel, large formal hotel, located near major attractions, above average service levels, more than one restaurant, 24 hrs room service, laundry, valet parking, travel desk, wellness center, pool, high class room décor.

FIVE STAR

superior hotel, high level of accommodation and service, large property, hotel lobby and rooms with stylish furnishing and linen, all modern and high end facilities and amenities,  at least three restaurant,  24 hrs room service, concierge to assist you 24 hrs. 

FIVE STAR DELUXE

Highest level of accommodation and service, this hotel provide all 5 star facilities like ultimate decor and high degree of personal service like butler service.

HERITAGE HOTELS

A recent addition to the hotel industry in the country, heritage hotels are properties set in small forts, palaces or havelis. In a heritage hotel, a visitor is offered rooms that have their own history, is served traditional cuisine, is entertained by folk artistes, get a glimpse into the heritage of the region. According to the ministry of tourism, the heritage hotels are further subdivided as follows:

Heritage – built between 1935 and 1950

Heritage classic – built between 1920 and 1935

Heritage grand – built prior to 1920

OWNERSHIP BASIS:

PROPRIETARY OWNERSHIP / INDEPENDENT HOTEL:  owners’ hotel

Proprietary ownership is the direct ownership of one or more properties by a person or company. Small lodging properties are owned by family and large properties are owned by major international hotel companies. No affiliations or contract with other property, No tie up with other hotels. Owner has independent control

Profit goes to the owner. Quickly respond to market changes. Work with limited finances

MANAGEMENT CONTRACTED HOTELS: management by others

Properties owned by individuals or partners, operated by external professional organization for management fee.

Adv. – international recognition, operating systems, training program, marketing, international expertise, profitable operations, advertisement, reservation system, staff.

CHAIN HOTEL: a group of hotels that are owned or managed by one company is called chain hotel.

Adv.: Large central organization providing central reservation system, management aids, financial strength, expertise, manpower, specialties, promotions

FRANCHISE HOTELS/ AFFILIATED:

It is the authorization given by a company to another company or individual to sell its unique products and services and use its trademark according to the guidelines given by the former, for a specified time and at a specified place.

Franchise owner (franchisor) grant another hotel (franchise) the right use its methods & system, technical services, marketing trademark, signs etc. for fees.

Adv.-

Opening assistance- architectural, interior designs

Systems and procedure

Staff training

Financial assistance

Advertising and global marketing

Central reservation

Central purchase

REFERRAL CHAIN:

A referral chain is made up of independently owned and operated hotel and provides shared advertisement, joint reservation system and standardized quality. Virtually there is no shared management or financial functions

TIME SHARE / VACATION OWNERSHIP/ HOLIDAY OWNERSHIP:

Each room is owned by several people for different time period. Each owner gets a stay of specific period for a number of years. One time purchase is made by paying purchase price & payment of a yearly maintenance fee. Generally located at dream sites like beaches, hill, waterfall etc. Adv.- long term accommodation, comfort homes, economical, good location, international exchange possible.

CONDOMINIUM:

Joint ownership of a complex.

Type of accommodation where owner of a room or an apartment in a complex, of several such accommodations, furnishes it and informs the management of the times when he will be using it. He permits to rent out the apartments at other times and the rent goes to the owner. The owner pays the monthly maintenance fee.

DEGREE OF SERVICE OFFERED

  • UPMARKET/ LUXURY/ WORLD CLASS SERVICE HOTELS

Targeting the affluent segment of society, hotels in the up-market category offer world class products with personalized service of the highest standards. The emphasis is on excellence and class. These hotels provide upscale restaurant and lounges, exquisite décor, concierge service, abundant amenities.

  • MID MARKET/ MID SEGMENT SERVICE HOTELS

These hotels offer modest services without the frill and personalized attention of luxury hotels, and appeal to the largest segment of travelers. They offer services such as room service, round the clock coffee shop, pick up drop, multi cuisine restaurant and bar.

  • BUDGET OR ECONOMY HOTELS OR LIMITED SERVICE

Focus on meeting the most basic needs if guests by providing clean, comfortable and inexpensive rooms. Hotels have clean and comfortable guest rooms, coffee shop, a multi cuisine restaurant, in room telephone and channeled music and movies, swimming pool, health club.

CLASSIFICATION ON THE BASIS OF CLIENTELE:

  • BUSINESS OR COMMERCIAL HOTEL:cater to the business traveller, generally situated in the city Centre.
  • TRANSIENT HOTEL: cater to the needs of people who are on the move and need a stopover en route their journey, situated in close proximity of ports of entry.
  • RESIDENTIAL HOTEL: cater to the guest who stays for a long duration.
  • CASINO HOTEL:casino hotel provide gambling facilities.
  • CONFERENCE HOTEL: hotel cater and organize conference
  • CONVENTION HOTEL: who organize convention and cater to the guest who comes to attend the convention.
  • SANATORIA: hotel which has health club and spa, and caters to the people who came to these spas for treatment.

CLASSIFICATION ON THE BASIS OF DURATION OF GUEST STAY:

  • COMMERCIAL HOTEL: duration of stay is short, usually 1-7 days
  • TRANSIENT HOTEL: duration of stay from few hours to 1 day
  • SEMI RESIDENTIAL HOTEL: duration of stay range from few weeks to some months
  • RESIDENTIAL / APARTMENT HOTEL: duration of stay range from months to few years
  • EXTENDED STAY HOTEL: duration of stay few days to weeks.

CLASSIFICATION ON THE BASIS OF TARGET MARKETS

The 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 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 a 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 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 a 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.

Pension or guesthouse

These are very popular with tourists not wanting the large hotel with many facilities they may never use but are looking for a more personal place to stay which will cost less and have a ‘home from home feeling.

City hotel

City hotels are used by business travellers and tourists alike. Often the tourists require a hotel in the centre of the city, convenient for sightseeing, not necessarily expensive, whereas the business traveller will also need the convenient location but may need a hotel with relevant facilities.

Motels

Motels have enjoyed an increase in their business in recent years as the increase in private car owners has materialised. A motel is a hotel mainly for motorists and located conveniently near a major motorway.

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, Valetconcierge services and also private dining facilities. 

Mid-Range Service: Hotels offering mid-range or otherwise 3 to 4-star hotels service appeal to the largest segment of the travelling public. This kind of hotels does not provide elaborate service and have 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 a comfortable stay, without unnecessary paying additional cost for costly services.