Categories of hotels are used to classify the various different types of accommodation available to guests. Hotels can be categorized according to their size, service standards, layout, ownership structure and more.

Breaking down the many different hotels into major categories helps to set guest expectations and define service standards. Guests know the level of service they will get and hoteliers understand what they need to offer.

In this article, you can learn more about the various types of hotels on the market, how they are defined, what hotels in each category have in common, and what they collectively have to offer guests.

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Understanding the Different Categories of Hotels

Categories of hotels are created and defined to help hoteliers and guests understand the different types of hotels on the market. Using standard definitions helps to provide clarity and manage guest expectations.

Hotel categories are determined based on the size of the hotel, the facilities on offer, the level of service provided, ownership, or the hotel technology used. These hotel categories group similar businesses together in a logical way.

Accommodation businesses can also be categorized according to the star ratings they have earned, or their typical room rates. Defined categories of hotels can help businesses to determine their place in the market and who their rivals are.

The Importance of Hotel Categories and Classifications

Clearly defining categories of hotels is important for managing guest expectations and establishing the service standards that need to be delivered. This can help to ensure customer satisfaction is not impacted by unrealistic expectations.

These categories can also play a key role in hotel marketing strategies. For example, the messages sent out by a luxury hotel will be very different from a budget hotel, because they appeal to different customers.

As a result, hotels can make more informed decisions about recruitment and staffing, while travelers can make more educated choices about the types of hotels they want to book and the facilities they will have access to.

Categories of Hotels: Exploring the Main Types and Their Features

In the following sections, you can learn about some of the main categories of hotels, including their features and characteristics, so you will have a better understanding of how accommodation is classified.

Chain Hotels

Multiple hotels operating under the same brand are considered to be part of a chain. These chain hotels can either be owned by the brand, or operated as part of a franchise agreement and will usually have shared characteristics.

This category of hotels accounts for a large number of all hotels worldwide. The hotels in a chain generally provide a very similar experience, using standardized service approaches and amenities.

Some of the best-known chain hotel brands include Marriott, Hilton, Best Western, and Wyndham. Different hotels in the chain will also often share marketing strategies, booking processes and customer loyalty programs.

Resorts

Resorts are a type of large-scale accommodation, which serve as a travel destination in their own right. Unlike other categories of hotels, resorts provide comprehensive services, so guests have everything they need on-site.

For guests, resorts play a valuable role in the hotel industry, providing everything a traveler needs in one place. This typically includes accommodation, restaurants, shops, bars, entertainment and leisure facilities.

Some resorts may go even further, catering to special interest groups. While there are no strict rules about where resorts are located, they are sometimes connected to major attractions, like theme parks.

Boutique Hotels

A boutique hotel is a relatively small hotel, with unique design features. These hotels are often located in city centers, are typically independently owned, and may have a specific theme, which can help them stand out.

Boutique hotels are one of the best categories of hotels for guests to opt for if they want personalized services. As the hotels are often smaller, services can be tailored to individuals to offer unique and memorable experiences.

Concierge services often go beyond other hotel types, while hotel restaurants may focus on unique cuisine. The interior design elements are often very trendy, which can increase the amount of photographs shared on social media.

Budget Hotels

As the name suggests, budget hotels are a type of hotel that focus on affordability. These properties generally offer fairly basic services and target travelers who are the most price-sensitive.

Like most categories of hotels, they will offer a clean and comfortable place to stay, along with the most crucial amenities. However, the range of services and level of personalization is unlikely to match high-end hotels.

Budget hotels generally maintain their low rates by minimizing their own operating costs. This could mean they operate with a relatively small workforce and they will prioritize critical services over the smaller details.

Luxury Hotels

A luxury hotel is an accommodation business that offers excellent service, facilities and amenities. These hotels will usually charge higher prices and appeal to customers who want the very best quality.

Compared with other categories of hotels, luxury brands go the extra mile with more personalization, more advanced technology and bigger and better rooms. Guests can expect additional comfort, great food, and more.

Luxury hotels generally compete less on price and more in terms of the overall guest experience. They will often have a higher number of staff, which means they can be more attentive to individual guests’ needs.

Business Hotels

Business hotels offer accommodation and a variety of additional services aimed at corporate travelers. They will usually provide specific business-focused facilities, including meeting or conference rooms.

While other categories of hotels may target business travelers too, business hotels place relevant services at the heart of their messaging. They will offer high-speed internet access, communication tools and work areas.

In many cases, a business hotel will provide printing and photocopying services, and will offer additional assistance with transportation. These hotels may also host major business conferences and events.

Bed & Breakfasts (B&Bs)

A bed & breakfast is a small-scale accommodation, which will offer overnight stays to a relatively small number of guests. These properties try to provide home-like comfort and service with a personal touch.

B&Bs are often included in the main categories of hotels, as they offer hotel-like services on a smaller scale. This will usually include private guest rooms, a bar, and access to on-site meals.

Many B&Bs are converted houses or pubs and have traditional design features. In some cases, the owners of the bed & breakfast live on-site or in an adjoining property, and B&Bs are often found in rural areas or smaller towns.

Airport Hotels

Airport hotels are accommodation businesses situated either within an airport or close-by. They primarily serve people using the airport for travel, and they may also cater to travelers facing delays or cancellations.

Most of these properties will offer specific services to facilitate air travel, such as transportation to different airport terminals. For airport users, they represent an extremely convenient option for overnight stays.

Airport hotels have unique challenges compared to most other categories of hotels, like the sound of airplanes and irregular check-in patterns. For this reason, properties are usually sound-proofed and provide 24/7 front desk support.

Video: Welcome to the Marriott Frankfurt Airport Hotels

Extended Stay Hotels

Extended stay hotels are hotel businesses that provide guests with options for more lengthy stays than other categories of hotels. Guests are able to stay for periods exceeding two weeks; perhaps even extending to several months.

This hotel business type serves an important function in the wider industry, offering accommodation for long-stay guests. After all, some people need accommodation for longer than a conventional one-week or two-week vacation.

Extended stay hotels also have other common features, such as layouts with large living spaces, resembling a home. Discounts are often available on long stays and on-site facilities may include a grocery shop.

Motels

A motel is a type of accommodation aimed at motorists. The name ‘motel’ is derived from ‘motor hotel’ and these properties usually feature rooms that are accessible directly from the parking area.

Like many of the categories of hotels in this list, motels have a clear target audience, appealing to people on lengthy road trips. Motels are usually situated along major roads and there is usually an emphasis on affordability.

Motels may lack some of the traditional hotel services, like on-site bars and restaurants, but many modern motels do offer free Wi-Fi and other key services for both leisure and business travelers.

Hostels

A hostel is a type of accommodation providing shared living spaces, including the sleeping area and kitchen facilities. The focus is generally on providing a basic place to stay, with few additional services.

Hostels can be compared with other budget-friendly categories of hotels and accommodation. These properties typically sell beds, rather than private rooms, and are often aimed at young travelers.

In many cases, there is a strong social component to a hostel, as the living arrangements facilitate meeting new people. Hostels can be of particular interest to backpackers, students and solo travelers.

Themed Hotels

Themed hotels are accommodation properties that use a theme for design, hotel marketing and/or on-site events. The hotel’s theme may revolve around a movie, novel, historical time period, or a specific real-world culture.

As the presence of a theme is the shared characteristic, this can be one of the most diverse categories of hotels. For example, a themed hotel may also be a resort, a luxury hotel, or a boutique hotel.

These properties have a unique niche within the hotel industry and may target a specific audience. Examples found around the world include Disney-themed hotels, Batman-themed properties, and Harry Potter-themed accommodations.

Spa Hotels

Spa hotels are hotels that make their spa services a key part of their offering to customers. This means a combination of wellness, beauty and relaxation services, intended to enhance the overall guest experience.

The role of spa hotels is usually to help guests to prioritize their well-being and comfort levels during their stay. Services may include massage treatments, skin treatments, meditation classes and jacuzzis.

One of the main ways spa hotels are distinct from other categories of hotels is the presence of qualified spa staff, like beauty therapists, massage therapists and other well-being experts.

Vacation Rentals

Vacation rentals are private homes, cottages, villas or apartments, which are able to be booked by guests for short-term stays. Vacation rentals may be owned by individuals or by accommodation businesses.

These properties play a vital role in the hotel industry, providing guests with an experience similar to their own home. This can make them an ideal choice for families, couples, business travelers, or digital nomads.

Unlike most categories of hotels listed, vacation rentals are offered on a self-service basis. Guests usually have access to a kitchen and multiple bedrooms, but must clean and take care of the house during their stay.

Historic Hotels

A historic hotel is a hotel business set up in a building of significant importance historically. Some of the most common examples include hotels converted from old mansions, castles, or factories.

Historic hotels may have more unique architectural features than other categories of hotels, and this can influence interior design. Some historic hotels play into the past uses of the building, adopting a theme or offering an exhibition.

Despite their rich history, historic hotels usually include modern conveniences and technology too. In some cases, the hotel itself is of historical importance, such as the first hotel in a major chain.

Categories of Hotels: A Guide to Hotel Classifications & Types

Exploring Common Hotel Classifications

Hotels can also be classified according to quality standards, service levels, size, or their primary audience for marketing. In the sections that follow, you can learn about some of the key hotel classifications.

Star Ratings System

One of the ways to browse the different categories of hotels is via their star rating. The most widely-used star rating system is operated by the Forbes Travel Guide, while the American Automobile Association operates a diamonds system.

Both of these ratings systems are important for providing independent assessments of accommodation properties. Potential guests can check the star rating or number of AAA diamonds a hotel has and make informed booking decisions.

Star ratings and similar systems use consistent assessment criteria to grade hotels, based on the level of service they offer, the hotel amenities, the level of comfort they provide, and how clean the hotel is.

Video: Is your hotel 4- or 5-stars? Here’s how to tell them apart

Level of Service

Hotels may be classified according to the level of service they provide. These classifications differ but may broadly be: budget hotels, mid-range hotels, premium and luxury hotels.

Placing properties into these categories of hotels can help hoteliers to define their market position and prioritize services accordingly. For guests, it is a useful way to understand what level of service to expect.

At the same time, hoteliers can look at similar hotels and identify ways to differentiate their offering. It can make it easier to pinpoint direct rivals and these rivals can then be monitored for pricing and service adjustments.

Ownership Structure

The ownership structure of a hotel can also help to influence its classification. For instance, independent hotels are singular hotels, owned by individuals, while chain hotels are owned by a hotel group or company.

Understanding hotel ownership structures is important for everything from branding and advertising, to implementing procedures and processes. Chain hotels and franchises tend to have less flexibility to make changes in these areas.

For guests, ownership can also factor into booking decisions. As an example, if a guest has previously had a good experience at a Hilton or a Marriott hotel, booking another one is likely to result in a similar experience.

Target Market

Hotels may be classified according to their target market or the segment of the market they appeal to most. Examples of common target markets include business travelers, families, couples, and solo travelers.

Hotels being classified by their target market can help to focus internal efforts on the needs of that core demographic. It can also make it easier for guests to find and book a suitable hotel.

Target market-based categories of hotels can also help with marketing and branding. However, it is important to understand that many of these hotels may still target other demographics besides their core audience.

Property Size

Categories of hotels can also be determined by the physical size of the hotel itself. In many cases, the number of guest rooms and the total guest capacity are key factors in determining hotel classifications.

Grouping hotels according to their size can make it easier for guests to know what to expect during their stay. It also allows hoteliers to understand their own place within the market and avoid comparisons with much larger hotels.

As a general rule, hotels that provide fewer than 25 rooms can be classed as small hotels, while hotels that offer more than 300 rooms are large hotels. Everything in-between can be considered a medium-sized hotel. However, this is not an exact science, as the average room size will have a bearing on how many rooms are in a property.

Length of Stay

Hotels are sometimes classified according to the length of stay on offer. This most commonly helps to define short-stay hotels and extended stay hotels, rather than hotels offering fairly standard lengths of stay.

It is vital for guests to know the length of stay allowed before they try to book a hotel. This information can be used in marketing messages to attract the right types of customer, or to differentiate a hotel.

In general, extended say hotels will allow people to stay multiple weeks and perhaps even several months. On the other hand, short-stay hotels may be able to be booked for a single night, or sometimes for as little as a few hours.

Exploring Common Hotel Classifications

Understanding Hotel Room Types

The various categories of hotels on the market can also be influenced by the types of rooms on offer. Some hotels will offer a variety of different room types, while others will predominantly focus on a single type.

Single Rooms

Single rooms are designed for solo travelers and other individual guests. They are usually the most basic hotel room type, and they are a common feature of several different categories of hotels.

This room type is an important part of the hotel industry, catering to solo guests who do not need large beds or extra floor space. These rooms are also generally more affordable than other options.

Single rooms will usually have one bed, although the actual bed size may be either a single or a double bed. Single rooms are also a popular choice for business travelers and some hotels may equip them with a desk or workspace.

Double Rooms

A double room is a common room type offered by hotels and similar properties. It will contain either a double bed or a king or queen-sized bed, and can be booked by couples or by individuals who want more space.

Providing double rooms allows hotels to squeeze more guests into their property, which can be important for revenue management. Most categories of hotels will cater to couples, with the exception of hostels and similar budget accommodation.

One of the most crucial aspects for hotels to clarify when selling double rooms is the presence of one bed. This means if there are multiple occupants, they need to be happy to share a bed or offered an alternative room type.

Suite Accommodation

A suite is a type of hotel room with a layout that separates the main sleeping and living areas. This will most commonly mean the provision of a living room and a bedroom, while many suites include kitchen facilities, too.

Suites are an important option because they are often more spacious and luxurious than conventional single, double or twin rooms. They are a common feature in categories of hotels that offer luxury upgrades.

Some types of hotels exclusively offer suites rather than conventional hotel rooms, and these are known as all-suite hotels. Suites are also a popular option for guests who are getting married or on their honeymoon.

Standard Rooms

A standard room is the most basic room size offered by a hotel. It can generally be regarded as the default option within most hotels and will offer the most simple technology and comfort items.

In most categories of hotels, the standard room is the main room type on offer and the starting point for a booking. When third-party platforms list a room rate for a hotel, they usually list the price for a standard room.

For furnishings, a standard room will usually provide a bed, a private bathroom and other essentials. Depending on the standard of the hotel, it may also include a television and other forms of in-room entertainment.

Deluxe Rooms

Deluxe rooms are regarded as an upgrade from the standard room in a hotel. As the name indicates, these rooms will be more spacious and will often provide additional amenities and features.

For hotels, selling deluxe rooms is a great way to make additional revenue and it is a common upselling option during a booking process. Hotels will often sell these rooms by promising improved comfort for a higher price.

Some of the other ways a deluxe room could represent an upgrade include a better view from the window, improved access to light, and better technology. In smart hotels, there may be more options for controlling room conditions.

Understanding Hotel Room Types

Comparison of Hotel Categories

Here’s a comprehensive overview of different hotel categories and their key characteristics:

Category Target Market Average Stay Key Amenities Price Range
Luxury High-end travelers 3-5 days Full service, spa $$$$
Business Corporate clients 1-3 days Meeting rooms $$$
Resort Leisure travelers 5-7 days Recreation $$$
Budget Cost-conscious 1-2 days Basic amenities $
Extended Stay Long-term guests 14+ days Kitchenette $$
Boutique Experience seekers 2-4 days Unique design $$$

Categories of Hotels: The Most Crucial Information

The following bullet points summarize important information and definitions for different categories of hotels:

  • Full-Service Hotels: Guest accommodation that provides a complete range of amenities and services, including concierge and room service, corporate offerings and an on-site restaurant.
  • Limited-Service Hotels: Types of accommodation that prioritize the essentials, like shelter, a comfortable bed and basic technology. These hotels are ideal for price-sensitive customers.
  • Extended Stay Hotels: Accommodation intended to facilitate longer stays, which could last several weeks. They will often provide kitchen facilities and an environment that feels like a conventional home.
  • Airport Hotels: One of the most convenient categories of hotels, located within or close to an airport. Ideal for travelers dealing with early flights, connecting flights, cancellations or delays.
  • Boutique Hotels: Unique hotels, often in urban areas, featuring unique design features. These properties are on the smaller side and will often prioritize personalization.
  • Convention Hotels: Larger categories of hotels, with significant space allocated to conference rooms, exhibition areas, and other facilities that can be used for larger business events.

Market Positioning and Hotel Target Audiences

The following bullet points offer a breakdown of common target audiences and positioning strategies:

  • Premium and Luxury Accommodation: Hotels and other accommodation properties targeting people who are willing to spend more for greater comfort and better service standards.
  • Upscale Accommodation: High-end categories of hotels, usually targeting leisure and business travelers, offering high-quality services and amenities that fall short of luxury.
  • Mid-scale Accommodation: Hotels and similar businesses offering a combination of comfort and upgraded service, usually with middle-of-the-road pricing strategies.
  • Economy and Budget Accommodation: Categories of hotels targeting the most price-sensitive customers. These hotels will usually place an emphasis on addressing basic needs.
  • Extended Stay Accommodation: Hotels and apartments targeting guests who want to stay for several weeks or even months. These properties usually provide self-service kitchen facilities.
  • Specialty Accommodation: Hotels and accommodation options aimed at people with specific needs or interests, including skiing resorts, eco-friendly hotels and spa hotels.

Exploring Different Types of Hotel

Hotels can be categorized in terms of type, size, star rating and more. However, it can be beneficial to dig even deeper into the main types of hotels, from chain hotels and boutique hotels, to motels and resorts. In particular, it is useful to understand what each of these categories of hotels has to offer guests.

In the “Types of Hotels: Exploring Classifications and Hotel Types” article, you can access a full overview of the different hotel types, with explanations of their services, facilities and business models.

Understanding Hotel Star Ratings

The hotel star ratings system is used to provide travelers with a guide for what to expect from accommodation. It can be applied to almost all categories of hotels and typically ranges from a 1-star hotel, with basic amenities and minimal services, to a 5-star hotel, with lavish rooms, luxury amenities and high-end technology.

In the “Hotel Star Rating System: Types, Benefits, Significance, Examples” article, you can read a full breakdown of what to expect for each star level and learn about the emerging hotel marketing concept of 7-star hotels.

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Categories of hotels serve to break the various different accommodation types in the hotel industry into distinct groups. Hotels can utilize these hotel classifications in marketing content, helping to control guest expectations.

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This article is written by:

Martijn Barten

Hi, I am Martijn Barten, founder of Revfine.com. With 20 years of experience in the hospitality industry, I specialize in optimizing revenue by combining revenue management with marketing strategies. I have successfully developed, implemented, and managed revenue management and marketing strategies for individual properties and multi-property portfolios.