Module 1

Module 1
Classification of Hotels
Objective
 Classification of Hotels
Hotels can be classified into different
categories or classes, based on their
operational criteria. Following are some of
the categories:
1. Degree of Luxury
2. Size, Location & Clientele
3. Ownership Basis
4. Specific Features
Based on Degree Of
Luxury
 Refers to star rating of Hotels.
 Done by HRACC ( Hotel & Restaurant
Approval & Classification Committee).
 Members from the govt. & other trade
related to hotels.
 hracc guidelines attached
Based on Size
 Small Hotel : 10 to 100 Rooms

 Medium Hotel : Up to 300 Rooms
 Large Hotel : Up to 600 rooms
 Huge Hotel : More than 600 Rooms
Based on Clientele
 Corporate Hotel: Serving executives /Business
people. We offer continental plan to the guests i.e.
breakfast included as guests r on business and
lunch and dinners r scheduled by the company
 Leisure Hotels : People come for pleasure, holiday

or any personal relaxation purpose. We offer
modified american plan i.e. breakfast and one
major meal lunch or dinner as guests r there 4
sight seeing which they ll head for pre or post
lunch
Based on Location
 Commercial Hotel : Generally located in the heart of city
(where it reads o mile )within a short distance from
business center, shopping arcade. Rates are normally high
due to their location . They cater mostly businessmen
 Resort Hotel: They are usually situated in tourist locations

like on rivers, mountains, jungles, or the sea. They give
more privilege to sports activities, leisure and re-creation
activities like sightseeing, adventure sports, etc. They are
also termed as health, beach or 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.
 Transit Hotel: These hotels are set up near by the airport.

They have transit guest who stay over between flights.
 Motels : They are located on highways. Guest is given parking
right outside their rooms. They usually have a gas station /
workshop attached to them. The length of stay is usually
overnight. Motels should have min 10 rooms +gas station
+and 24hrs restaurant facility.
 Flotels : 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.
 Rotels :These novel variants are hotel on wheel. For e.g.: "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.
Based on specific features
 Apartment hotel: Rooms sold on longer term. .(kitchenette
attached but u not allowed to cook in there due to the hotels
norms which doesn't allow cooking in room and it is part of
the room) sold for longer duration rates r low.
 Ecotels: these are environment friendly hotels. These hotel
use eco friendly items in the room. Example: Orchid Mumbai
is Asia’s first and most popular five star Ecotels.
 Boutique Hotel: Each room distinctive & different. very
expensive linens, schemes etc. eg: the park Bangalore in
India
 Heritage hotel: Hotels built in palaces / fort etc. building
should have completed 100yrs, changes in infrastructure can
only b done by govt. color cant b changed.
 Lotels : Hotels with heli - pad facility. None in India due to
govt. regulations.
Capsule hotel
 The first capsule hotel

was the Capsule Inn
Osaka
 This style of hotel
accommodation was
developed in Japan and
has not gained
popularity outside of the
country
 These capsule hotels
vary widely in size, some
having only fifty or so
capsules and others over
700.
Capsule hotel
 The guest space is reduced in

size to a modular plastic or
fiberglass block roughly 2 m by
1 m by 1.25 m, providing room
to sleep.
 Facilities range in
entertainment offerings (most
include a television, an
electronic console, and
wireless internet connection).
 Good option for people
travelling alone and for shorter
duration
 Biggest hindrance for such
hotels in India is safety and
security in terms of civic
senses.
Based on Management
 Independent Hotel: Not affiliated or contracted through any other
property. They have no application with other properties. They have
their own management and are single properties with one owner.
 Chain Hotels: They impose certain minimum standards, levels of
service, policies and procedures to be followed by their entire
establishment. Chain hotels usually have corporate offices that
monitor all their properties and one management runs these
properties. That is all the hotels under the chain are completely
owned and run by the chain itself.
1. Management Contract
2. Franchisee
3. Multi Unit Company
4. Referral Chain
Mgmt contract
 A hotel management contract is an arrangement whereby a hotel’s
owner contracts with a separate company, or an operator, to run a
hotel.
 There r 2 parties the mgmt party which recruits the top heads like the
GM etc. they r experts from the field of hotel industry. eg:- sarovar
group., Hyatt corporation
 and the 2nd party is the owner which owns all the assets and carries
the operational cost. they also recruit people with the assistance of
the 1st party.
 The 2nd party pays mgmt consultancy charge as well as the salary of
the top people to the 1st party in return the 2nd party gains
international presence and recognition.
 Limitations
 moment the1st party feels that the 2nd party is not following D norms
prescribed by them it can remove it’s name.
 as the mgmt changes they mould the employees acc. to their
standards.
franchisee
 Franchisee is just like mgmt contract only
with an exception that under this the
franchisee fee is charged.
 1st party has no say in the profit neither do
they recruit top heads.
 2nd party has to follow the sop’s (std.
operating procedures) prescribed by the 1st
party which is audited continuously to keep
a check.
 E.g.- grand Hyatt in vasant kunj was a
franchisee of Hyatt.
Multi unit company
 Owner has his own hotels all over India as
well as abroad.
 For expanding beyond national boundaries
they need to enter into franchisee or mgmt
contract.
 The owners either build their own hotels or
take buildings on lease for a period of 30 or
99 years.
 E.g.:- taj, oberois.
Referral chain
 Independent hotels tie up together to

give business to each other.
 No tie up in terms of profit sharing or
mgmt.
 These hotels also tie up with airlines to
get business.

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Module 1

 Small Hotel : 10 to 100 Rooms

 Leisure Hotels : People come for pleasure, holiday

 Resort Hotel: They are usually situated in tourist locations

 Transit Hotel: These hotels are set up near by the airport.

 Flotels : As name implies these hotels are established on luxury

 The first capsule hotel

 The guest space is reduced in

 Independent hotels tie up together to

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