DEFINING A HOTEL

A hotel or inn may be defined as an establishment whose primary business is providing lodging
facilities for the general public & which furnishes one or more of the following services.

Services

a) Food & Beverage b) Housekeeping c) Concierge d) Bell & Door attendant service e) Laundry
& dry cleaning f) use of furniture & fixtures.

Hotels range from 50 to 2000 rooms & sometimes more. Inns usually have b/w 5 to 50 rooms.

A hotel provides many services and facilities to its guests, yet hotels may have different
characteristics and assets. Most of the hotels do not fit into a single category because of the
services provided by them.

Hotels are classified into several distinct categories to help a guest in selecting the right
type of hotel matching his standard and requirement.

CLASSIFICATION OF HOTEL

A hotel provides many services and facilities to its guests, yet hotels may have different
characteristics and assets. Most of the hotels do not fit into a single category because of the
services provided by them.

Hotels are classified into several distinct categories to help a guest in selecting the right type of
hotel matching his standard and requirement. Hotels are classified on the basis of SIZE,
TARGET MARKETS, LEVEL OF SERVICE, & OWNERSHIP & AFFILIATION. 
 CRITERIA FOR
CLASSIFICATION OF
HOTELS

BY SIZE
TARGET
MARKET/CLIENTILE

LOCATION

OWNERSHIP

LEVEL OF SERVICES

DURATION OF STAY

SIZE : hotels are grouped in four categories i.e.

SIZE NO OF ROOMS
SMALL Upto 150
MEDIUM 150-299
LARGE 300-500
MEGA More than 500

TARGET MARKET : with the help of marketing research, tools, and strategies hotels seek to
identify TARGET MARKET, these are defined as group of people that the hotel hopes to retain
or attracts as guest. A hotel may targets many markets and can be classified according to the
market they attempt to attract and serve. The most common types of properties based on target
market include are:

 Commercial
 Airport
 Residential
  Resort
 Time share
 Bed and breakfast
 Casino
 Conference center
 Convention hotels
 Condominium. 

TYPE OF HOTEL LOCATION CLIENTILE SERVICES/FACILITIES EXAMPLES

COMMERCIAL Commercial area, Businessmen or WiFi facility in rooms, Vivanta by Taj, B’lore
down town areas, corporate
HOTELS Conference Rooms, Board
business districts
rooms, Service of Business
& also in the
centres
heart of the city.
TRANSIENT Near airports, Stopovers, Exchange rate / airport The Leela kempinski,
Seaports airline staff transfers,
HOTELS B’lore
travel desk (book tickets &
updated High Schedule),
more staff at night shift
SUITE HOTELS Not in VIPs, Highest level of personalized Burj Al Arab, Dubai
services to guests.
commercial areas, diplomats
but in posh areas.

RESIDENTIAL HOTEL Upmarket People who are Are like apartments .

residential area on a temporary
official visit to a Can have 1 to 4
destination
bedrooms.
Length of stay is
Usually have kitchenette
0-2 years
for cooking.

CASINO HOTEL Areas where Clients State of art facilities along Luxor Hotel, Las Vegas
gambling is legal interested in with specialty restaurants,
gambling, MICE bars and well appointed
rooms

BED AND Cultural centres Budget Have room and Breakfast

BREAKFAST HOTEL travelers Breakfast is served in room or
have a common dining table.

Very modest

Popular in Europe

Also known as Mom and Pop

stores

CONFERENCE HOTEL Usually Suburban Conference Rooms for delegates, Hotel Ashok,
delegation, MICE conference facilities with
(hotels with 400 or desired seating configuration New Delhi
more rooms)
And F&B requirements before
and after the conference

CONVENTION Usually Suburban Big Convention State of art convention centre Hotel taj Palace, New
HOTEL delegates, MICE with all facilities Delhi

Greater no of rooms to host

large number of attendees as
compared to conference
centres

Near scenic Holiday

beauty, can be by makers, Recreation&Leisurefacilities
a beach or travelers,
RESORTS Swimming pool,
mountains. families.
Gym, Indoor & Outdoor

Game, Sightseeing facilities,

Spa.

COMMERCIAL HOTEL: commercial hotels are situated in the heart of the city. Mostly the
businessmen or commercial executives patronize these hotels. Guest facilities at these hotels are
– complimentary newspaper, colour TV with cable, E-mail, fax connection, car rental, airport
pick up, coffee shop, bar, specialty restaurant, swimming pool, health club, room service,
concierge, business center, conference room etc. length of stay in these hotels are from one day
to few days.
AIRPORT HOTELS: these hotels are situated near the airport and are frequented by
businessmen, airline passengers, layover passengers, crew members etc. facilities provided are
similar to that of a commercial hotels but the only difference is that airport pick up is provided
from hotel to airport and vice versa. Length of stay in these hotels is from few hours to few days.

RESIDENTIAL HOTELS: these hotels provide long term or permanent accommodation.

Advance rent is collected while other charges are billed weekly. There may be a restaurant
serving all types of cuisine and there will be laundry service. These hotels normally work on
European plan. Recently these types of hotels are converted into cooperative hotels or
condominiums. Length of stay is from a week to one or more months.

RESORT HOTEL: A resort may be located in the mountains, on an island, or in some other
location away from crowded area. Most of the resort hotels provide extensive food and beverage,
valet and room service for the vacationers. These hotels also provide special activities such as
golf, tennis, horse back riding, nature hikes, sailing, skiing, swimming and dancing etc. resorts
also try to be destination within a destination by providing wide range of services, facilities and
activities giving a guests with many choices. A more leisurely, relaxed atmosphere distinguishes
most resort hotels from their commercial counterparts. Length of stay is for one week or more.

CASINO HOTELS: hotels with gambling facilities are casino hotels. Although the guest rooms
and F&B operations may be quite luxurious, but there function is secondary and supportive of
casino operations. Similar to resort hotels these hotels also cater to leisure and vacation travelers.
These hotels attract guests by promoting gambling. A recent trend in casino hotels now days are
to provide a broad range of entertainment opportunities, spas, golf, tennis court. These hotels
also have specialty restaurant. Length of stay is one week or more.

CONFERENCE CENTERS & CONVENTION CENTERS: Most of the hotels provides

meeting space & they also offer overnight accommodations and because meetings are their focal
point these centers place great emphasis on providing all services and equipment necessary to
ensure a meetings success- technical production assistance, high quality audiovisual equipment,
business center, flipchart, display chart and so forth. These centers also provides extensive
leisure facilities like golf course, swimming pool, tennis court, fitness center, jogging track
etc.guest amenities may not be plentiful at conferences centers since these centers concentrate
more on fulfilling the needs of meeting planners and organizers then on meeting the needs of
program attendees.

CONVENTION HOTELS : These are another segment of the lodging industry that has grown
significantly in recent years. These hotels have 50,000 sq; feet or more of exhibit hall space plus
ballroom and assortment of meeting rooms. These hotels also have sufficient no. Of guestrooms
to accommodate all the attendees of most conventions. These hotels are primarily directed
towards business travelers and offer business services such as secretarial assistance, language
translator, fax machines, computer room, tele- conference etc. convention hotels usually attract
the convention market from state, national and international association and other corporate
houses. ( PG)
TIME SHARE AND CONDOMINIUM HOTELS: 

Time-share hotels are referred to as the vacation ownership hotels. The concept is that for a set
period which may be one week or more in a year the person gets the right to enjoy stay and other
facilities and services in an apartment are any other type of lodging in a tourist complex. It is like
advance purchase of time in holiday accommodation.

Here the purchaser has to pay a one time capital sum and then annual contribution towards the
maintenance of the property. The fee usually covers services such as cleaning and maintenance
of apartment and public areas, electricity, gas, water, etc. Club Mahindra is the pioneer in Time
Share market in India. Another example is Sterling resort

Condominiums involve a joint ownership of a complex. Each owner has the full benefit of a
unit and shares the cost that is common to the entire complex such as taxes, maintenance, upkeep
of building etc. each owner can occupy or sell his unit independently but is obliged under the
terms of contract to contribute towards the pool of common facilities and services. The owner
can enjoy recreational exclusive to the complex and the management looks after the unit in the
absence of the owner and if permitted by the owner let it out to provide income to him. 

BED AND BREAKFAST HOTELS: These hotels are houses with a few rooms converted to
overnight facilities to small building having 20 to 30 rooms. The owner lives in the premises and
is responsible for looking after the guest, in these hotels only breakfast is served and meeting
rooms, laundry, lunch and diner and recreational facilities are offered in these hotels, however
some hotels do offer limited food service. 

LEVELS OF SERVICE: another way to classify hotels is by way of guest service and it is the
benefits provided by the hotel to its guests, which varies with the type of the hotels size. This
level of service is reflected in the guest room 

Three broad categories of hotels distinguished by levels of service are:

WORLD CLASS SERVICE : These hotels are also called as luxury service hotels. These
hotels targets top business executives, entertainment celebrities, high-ranking political figures
and wealthy clienteles. These have upscale restaurant, exquisite decor, concierge service,
oversized guest rooms and housekeeping service is provided twice in a day, and magazines and
newspaper in each room. These hotels also have different restaurant for different cuisines, and
they stress on personalized services and maintains high ratio of staff to guest. 

MID RANGE SERVICE : these hotels appeal to the large section of people, mid range service
is often modest but sufficient. These hotels have a specialty restaurant, coffee shop, room
service, and lounge service, which may have entertainment in the evening. Guest likely to stay in
these hotels is businessmen, individual travelers and families. Room rates are lower the world
class hotels since meeting rooms are usually available in these hotels people planning small
conference, group meeting and conventions may find these hotels attractive.
ECONOMY/ LIMITED SERVICE: These hotels provides clean, comfortable, inexpensive
rooms and meet the basic needs of a guest. These hotels are frequented by budget minded guests
who wants rooms with minimal amenities. These hotels have a very large market because large
portion of the population travels on limited funds. The clientele of these hotels include families,
groups, vacationers etc. Now a day these hotels offer cable television in the room, limited f&b
service, and small meeting rooms. 

CLASSIFICATION ON THE BASIS OF OWNERSHIP

Hotels can be categorized by ownership. There are six different ways hotels can be owned
and operated

Depending on who owns the hotels & type of ownership they’ve classified as:
INDEPENDENT HOTELS
In this there is only single property.
 CHAIN HOTELS
Multi - property owned by a group of individual
Advantage :
 Brand loyalty
 Sharing of losses
 Advantages of bulk purchasing
 Reservation net & marketing & advertising can be shared.
 Better & planned decision making.
 Experimentation
 Exchange of employees & training.
Disadvantages :
 Profit is shared
 Reputation at stake if 1 property does not perform well.
 Decision making is slow.
 Bureaucracy is applicable.
 No individuality
 Internal Competition may not be healthy.
MANAGEMENT CONTRACTED HOTELS
Owners hire management companies to run the hotel for them conditions are written in the
contract.
1. Pay Specific fee to Management Company the income is the owner.
2. The management company pays a specific amount to owners & the income is theirs.
e.g. Hilton.
 FRANCHISE
Using the name of a brand that has developed a distant way of doing business by paying a
fee.
The brand that lends the name - franchiser
The hotel that buys the name - franchisee
e.g. Hilton Towers, Grand Maratha Sheraton.
Advantage
 flexible
 quick decision making
 span of control
REFERRAL GROUP
The independent hotels get together & form an association to overcome the
disadvantage of being an independent property.
The hotels help each other getting business share reservation net; marketing & advertising
even purchases.
e.g. LHW (is a referral of leading hotels of the world).

SUPLEMENTRY ACCOMMODATION:  Consists of all types of accommodations other then

the convention type, it may be described as premises that provides accommodation but not the
other services which is provided by the hotels. The main distinguish features of supplementary
accommodations are:

•  Standard of comfort are modest as compared to that of a hotel,

•  They can sell accommodation at a very low price,

•  There is an informal atmosphere and freedom regarding dress code.

Supplementary accommodation plays a very important role in the total available tourist
accommodation in a country; it caters to both the international and domestic tourist traffic.

Types of supplementary accommodations are:

 Dharamshalas or sarae,
 Dak bungalows,
 Youth hostel,
 Dormitories,
 Sanatoria,
 Paying guest accommodation,
 Tourist bungalow etc. 

STAR CLASSIFICATION 

Department of Tourism, Government of India classifies hotels under star system in our country.
There is a committee known as hotel and restaurant approval and classification committee
(HRACC). Which comprises of representatives from the Ministry, Industry & the Institute of
Hotel Management of that area.
In the * Rating , 1 * is the min Rating and 5 * deluxe is the maximum. rating. 

5 * deluxe is considered to be equivalent of 1 st Class hotel by international standard. In America

hotels areClassified according to plans they offer.

In Europe they have

•  Deluxe Hotel

•  1 st Class Hotel

•  Economic Hotel

•  Budgeted Hotel

Once the hotel gets standard classification from HRACC they become eligible for various
benefits and relief's from Government of India.

 To be eligible to apply for classification hotel must fulfill the following minimum basic
requirements:

i) The Hotel must have at least 10 lettable bedrooms.

ii) Carpet areas in respect of rooms and areas of bathroom should by and large adhere to
the following limits:

Categories of Hotel Area standard for bedrooms/bathrooms

 5 Star/5 Star Deluxe Hotels

Single - 180 sq.ft.

 Double - 200 sq.ft.

Bathrooms - 45 sq.ft.
 4 Star & 3 Star Hotels

Single A/C and 120 sq.ft.

Single Non A/C - 140 sq.ft.

Double A/C and (Extra area may be provided if twin beds are to
be provided)
Double Non A/C -
36 sq.ft.
Bathrooms -
 2 Star & 1Star Hotels

Single A/C and 100 sq.ft.

Single Non A/C - 120 sq.ft.

Double A/C and (All rooms should have proper ventilation

Double Non A/C - And ceiling fans)

Bathrooms - 30 sq.ft. Or

subject to local bye-laws

Failure to satisfy these conditions will disqualify a hotel for consideration.

The general features, facilities and services expected of hotels in the different star
categories are broadly described below:

GENERAL FEATURES

5 STAR CATEGORY
 

•  It must have atleast 25 lettable rooms with attached bathrooms having along bath and with
most modern shower chambers.

•  Construction, locality and architect of hotel should have a distinct quality of a 5 Star hotel.

•  All public & private areas, should be centrally air conditioned, carpeted and equipped with
high quality furniture.

•  There should be a well designed and properly equipped swimming pool having life guards in
attendance.

•  There should be adequate member of guest elevator & service elevator functioning 24 hrs. By
laws if more than 4 floors definitely lift should be there. Escalator also.

•  There should be well equipped ladies and gents cloak rooms and well designed and well lit
lobby area.

•  There should be a reception, information and a cash counter functioning 24 hrs and attended
by highly qualified experienced staff members. Also at the cash counter 24 hrs money changing
facility available.

•  There should be a shopping arcade having Flower shop, Beauty Parlour, Barber shop, Book
shop, Antique shop and a recognized travel agency.

•  Each room should be providing with telephone having STD & ISD facility. Also in the lobby
there should be pay telephones and house telephones

•  Should be a provision of channel music in public and private rooms. Each room is provided
with colour T.V. and refrigerator.

•  There should be well equipped specialty restaurants serving different cuisines.

•  There should be atleast one bar or atleast a permit room (whichever by law)

•  Pantry & Cold storage facility should be professionally designed.

•  Hotels should offer both national & international cuisines and F&B Service should be of
highest quality.

•  There should be professionally qualified, experienced trained staff members who are smart &
courteous having good communication skills.

•  24 hrs room service & coffee shop service.

•  24 hrs service for telephone

•  24 hrs service for hot and cold running water

•  Provision for laundry and any cleaning services.

•  There should be adequate parking facilities for guest cars.

•  Each room is provided with a vacuum thermos flask with iced cold drinking water.

•  H/k in the hotel should be of the highest stds. With plentiful supply of clean linen, towels and
blankets which is of the highest quality.

•  There should be a dancing facility in the restaurant of hotel having light music, ghazals etc.

•  There should be a business centre in the hotel.

4 STAR CATEGORY

•  Services provided in a 4 Star hotel are same as in a 5 Star hotel except there is no provision for
swimming, pool and also 50% guest rooms do not have guest baths.

3 STAR CATEGORY

•  Hotel must have atleast 20 lettable room with atleast 50% rooms AC and rest of the rooms are
well ventilated having a ceiling fan or air coolers.

•  Facilities provided are similar to that of 4 Star hotel.

2 STAR CATEGORY

•  At least 10 lettable rooms out of which 75% rooms must have attached bathroom having a
modern shower chamber and rest of the rooms will have a bathroom for every four of the
remaining rooms with modern sanitation and running cold water.

•  There should be an adequate supply of hot water, soap and toilet paper.
•  25% of rooms should be air conditioned & all the rooms should be ventilated clean and
comfortable. There should be a reception counter with a telephone and this is maintained by
trained staff members.

•  If all rooms are not provided with a telephone then each room should have a call bell and a
telephone on each floor corridor.

1 STAR CATEGORY
•  Minimum 10 lettable rooms out of which 25% with attached bathroom and a bathroom for
every 4 of the remaining rooms.

•  At least 25% of the bathroom should have a W.C. with adequate supply of hot and cold water.

•  All the rooms should be properly ventilated & all rooms are provided with ceiling fan.

•  Should be reception counter manned by trained staff members and a telephone for guest use.

The application for One, Two and Three star category Hotels should be addressed to The
Regional Director, Government of India Tourist Office, M. Karve road, Mumbai 400 020.

Where as the applications for Four, Five and Five Deluxe category hotels should be
addressed to The Assistant Director (Hotels), Department of Tourism, Government of India C-I
Hutments, Dalhousie Road, New Delhi, 110011.

For each of these categories of star classification the hotel have to fulfill three classes of
criteria, E - Essential, N - Necessary, D - Desirable. For each of these criteria there are maximum
marks allotted.