6-1 Types of Hotels

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Hotels are classified according to the hotel size, location, target markets, levels of service, facilities, number of rooms, ownership and affiliation.

Size

Under 150 rooms
150 to 299 rooms
300 to 600 rooms
More than 600 rooms

These categories enable hotels of similar size to compare operating procedures and statistical results.

Target Markets

Hotels target many markets and can be classified according to the markets they attempt to attract. Common types of markets include business, airport, suites, residential, resort, timeshare, casino, convention, and conference hotels.

Business Hotels: These hotels are the largest group of hotel types and cater primarily to business travellers. They are 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, and breakfast. In addition, these facilities may also have guest access to a business centre, personal computers, Wi-Fi and fax machines.

Airport Hotels: These types of hotels typically target business clientele, airline passengers with overnight travel layovers or cancelled flights, and airline personnel. Some hotels give free transport between the hotel and airport. Some hotels also provide meeting facilities to attract guests who travel to a meeting by air and wish to minimize ground travel. Another attraction of these hotels is instead of charging the guest on a daily basis guest can sometimes also pay for their room on a hourly basis.

Suite Hotels: These kinds of hotels are the latest trend and the fastest growing segment in the hotel industry. The main attraction of these hotels is that guestrooms come with a living room and a separate bedroom. In exchange for more living space, suite hotels generally have fewer and more limited public areas and guest services than other hotels. This also helps keep suite hotel guestroom prices competitive. Professionals such as accountants, lawyers, businesspeople and executives find suite hotels particularly attractive as they can work and entertain in an area besides the bedroom.

Extended Stay Hotels: Extended stay hotels are similar to suite hotels, and usually offer kitchen amenities in the room. These kinds of hotels are for travellers who want to stay for more than a week and do not want to depend on the services of the hotel. Extended service hotels usually do not provide any food and beverage or laundry services. These hotels are considered by guests as a "home away from home".

Apartment Hotels: Apartment/residential hotels provide long-term or permanent accommodation for guests. Usually guests sign a lease agreement with the hotel for a minimum of one month or up to a year. The accommodations generally include a living room, bedroom, kitchen, private balcony, washing machine, and even kitchen utensils. Residential hotels also provide housekeeping, laundry, and a telephone. Some of these establishments will also include a restaurant and lounge.

Resort Hotels: Resort hotels are usually located in the mountains, on a beach, or in some other exotic location 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 guests to make repeat stays at the resort.

Bed and Breakfast Hotels (B&Bs): These are houses with rooms converted into overnight facilities. They are also known as 'home stays'. The owners of the B&B usually stay on the premises and are responsible for serving breakfast to guests. Due to the limited services offered at these hotels the price for a room is much less than that of a full service hotel.

Timeshare and Condominium Hotels: Another segment of the hospitality industry is the timeshare hotel. This is sometimes referred to as a “vacation-interval" hotel. Timeshare hotels have guests who have purchase ownership of the accommodations for specific periods of time. These owners may also have the unit rented out by the management company that operates the hotel. A condominium is similar to a timeshare, but the difference between the two lies in the type of ownership. Units in condominium hotels only have one owner instead of multiple owners. In a condominium hotel, an owner informs the management company if or when he/she wants to occupy the unit.

Casino Hotels: Hotels with gambling facilities may be categorized as casino hotels. Although the food and beverage operations in a casino are luxurious, their functions are secondary to and supportive of the casino operations. Casino hotels attract guest by promoting gambling and other forms of entertainment.

Conference Centres: These types of hotels focus on meetings, conferences and overnight accommodations for attendees. They also provide high quality audiovisual equipment and business services. These hotels are sometimes located outside of metropolitan areas and could have facilities like golf, swimming pools, tennis courts, fitness centres, and spas.

Convention Centres: Convention hotels are larger than conference centres and may have more than 1,500 rooms. These hotels need to have sufficient guest rooms to house all of the attendees of their conventions. They contain meeting rooms, ballrooms, and exhibit rooms.

Levels of Service

World Class Service: These are also called luxury 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, concierge services, and private dining facilities. Bathrooms are oversized with plush towels, large soaps bars, shampoo, shower caps and all amenities. Housekeeping services are performed twice a day including a turn-down service. Above all luxury hotels give personalized service to the guests and have a relatively high ratio of staff members to guests.

Mid-Range Service: Hotels offering mid-range service appeal to the largest segment of the travelling public. This kind of hotel does not provide elaborate service. They provide uniformed service, food and beverage room service, in room entertainment, and Wi-Fi. The property may offer a speciality restaurant, coffee shop, and lounge that caters to visitors as well as hotel guests. The types of guests who like to stay at these hotels are businesspeople, individual travellers, and families. Rates are lower than luxury hotels as they provide fewer services, smaller rooms, and a smaller range of facilities and recreational activities.

Economy / Limited Service: These hotels provide clean, comfortable, safe, inexpensive rooms that meet the basic needs of guests. Economy hotels appeal primarily to budget minded travellers who want a room with the minimum of services and amenities required for a comfortable stay. The clients of these hotels include families with children, travelling businesspeople, backpackers, vacationers, and retirees. These types of hotels might not offer food and beverage facilities.

Ownership and Affiliations

Ownership and affiliation provide another means by which to classify hotel properties. There are two types: one is the independent hotel and the other is the chain hotel.

Independent Hotels: They do not have identifiable ownership or management affiliations with other properties. That means these properties do not have a relationship with other hotels regarding policies, procedures, marketing, or financial obligations. An example of one of these hotels would be a family owned and operated hotel that does not follow any corporate policies or procedures. The advantage of running an individual property is its autonomy. An independent hotel, however, does not have the advantage of broad advertising exposure or the management insight and consultancy of an affiliated property.

Chain Hotels: This kind of ownership usually imposes certain minimum standards, rules, policies and procedures that restrict affiliate activities. In general the more centralized the organization the stronger the control over the individual property is. Some chains have strong control over the architecture, management, and standards of affiliate properties. Others concentrate only on marketing, advertising, and central purchasing.

Vocabulary

Word	Meaning	Example
service	an act of help or assistance	Hotels are classified according to the hotel size, location, target markets, levels of service, facilities, number of rooms, ownership and affiliation.
affiliation	the act of becoming formally connected or joined	Hotels are classified according to the hotel size, location, target markets, levels of service, facilities, number of rooms, ownership and affiliation.
conference	a prearranged meeting for consultation or exchange of information or discussion (especially one with a formal agenda)	Common types of markets include business, airport, suites, residential, resort, timeshare, casino, convention, and conference hotels.
complimentary	costing nothing	Guest amenities at business hotels may include complimentary newspapers, morning coffee, free local telephone calls, and breakfast.
access	the right to enter	In addition, these facilities may also have guest access to a business centre, personal computers, Wi-Fi and fax machines.
personnel	group of people willing to obey orders	These types of hotels typically target business clientele, airline passengers with overnight travel layovers or cancelled flights, and airline personnel.
segment	one of several parts or pieces that fit with others to constitute a whole object	Suite hotels are the latest trend and the fastest growing segment in the hotel industry.
limit	as far as something can go	In exchange for more living space, suite hotels generally have fewer and more limited public areas and guest services than other hotels.
professional	characteristic of or befitting a profession or one engaged in a profession	Professionals such as accountants, lawyers, businesspeople and executives find suite hotels particularly attractive as they can work and entertain in an area besides the bedroom.
private	confined to particular persons or groups or providing privacy	The accommodations generally include a living room, bedroom, kitchen, private balcony, washing machine, and even kitchen utensils.
utensil	an implement for practical use (especially in a household)	The accommodations generally include a living room, bedroom, kitchen, private balcony, washing machine, and even kitchen utensils.
lounge	a room (as in a hotel or airport) with seating where people can wait	Some of these establishments will also include a restaurant and lounge.
scenery	the appearance of a place	These hotels have recreational facilities, scenery, golf, tennis, sailing, skiing, and swimming.
premises	land and the buildings on it	The owners of the B&B usually stay on the premises and are responsible for serving breakfast to guests.
equipment	an instrumentality needed for an undertaking or to perform a service	They also provide high quality audiovisual equipment and business services.
celebrity	a widely known person	Luxury hotels target top business executives, entertainment celebrities, high- ranking political figures, and wealthy clientele as their primary markets.
advantage	the quality of having a superior or more favorable position	The advantage of running an individual property is its autonomy.
advertising	the business of drawing public attention to goods and services	An independent hotel, however, does not have the advantage of broad advertising exposure or the management insight and consultancy of an affiliated property.
restrict	place under restrictions; limit access to	This kind of ownership usually imposes certain minimum standards, rules, policies and procedures that restrict affiliate activities.
architecture	the discipline dealing with the principles of design and construction and ornamentation of fine buildings	Some chains have strong control over the architecture, management, and standards of affiliate properties.