Classification and categorization of Hotel Industry

Hotel is an establishment selling service i.e. food, drink and shelter. The value and the potentiality of a hotel is issued by size, location, service, number of rooms and other revenue earning points it posesses. Hotel can be classified on different basis:
According to size:

• Small hotels- 25 rooms or less
• Medium hotels- 25 rooms to 90 rooms
• Large hotels- 80 to 250 rooms
• Very large hotels- 250 rooms and above

According to their location:

• Airport hotels: located near the airport.Provides standard service ang high cost.
• Motels: located in the highway. people on long tour stay here.
• Resorts: located in the place of natural beauty far from the city. Specially holiday makers come here.
• Downtown hotels: Located in the heart of the city.
• Floatels: These hotels are cruises/ships on the sea.High standard services with Expensive cost.
• Railway hotels: Located near the railway stations.

According to the degree of comfort:

• Low class hotels
• Middle class hotels
• Luxury hotels

OR

• One star Hotels
• Two star hotels
• Three star hotels
• Four star hotels
• Five star hotels

According to the ownership:

• Independent hotels: Independent hotels do not have any ownership affilation with other properties. The owner hires professional managers and staff who run the hotel operation.
• Owner operated: These types of hotels are operated and managed by the owner itself and his own family. These properties have no affilation with other properties.
• Owner managed: These are similar to owner operated hotels, the exception is that the owners may hire the professional staffs to run the property.
• Chain hotels: In the first type of chain operated hotels, the hotel actually ownes as well as operates it. In the second type, the different management firm agrees to manage the hotel for a specific financial period.
•  Franchised hotels: Such hotels are owned by the investors.the owner of the hotels does an agreement to use the brand name of the parent hotel. This helps to setup a uniform standard, quality, training, promotional and advertisement benifit of the organization.