Hotel Management Definition, Categories, and Types of Hotels


Hotel is a commercial establishment that provides, accommodation, meals, and other paid guest services to their customers for a certain temporary period. 

Typically to be called as a hotel, an establishment must have six letting rooms-at minimum-, also at least half of those must-have attached private bathrooms. Even though hotels are classified into “star” categories, there is no such standard methodology to assign those ratings, and it is voluntary to comply with the needs and requirements of customers. Star hotels in the US usually look different from hotels in Europe and Asia having the same star rating also the amenities, facilities, and other services provided also may vary. However, hotel chains need to main the same standards throughout their branches. \

ROSEWOOD HOTEL BEIJING, CHINA | Hotel lobby design, Kitchen design ...

To meet their customers’/guests’ requirements and provide better services hotels usually hire professionals according to their budgets. As the industry is growing more and more hotel management professionals were hired in recent years. To get a better job opportunity it is suggested to pursue a bachelor’s degree from the best institute of hotel management, Hyderabad. Students desiring to get into this industry can choose Post graduation diploma in hotel management course after graduation.

These hotels usually were categorized based on their ratings and classified into different types based on size, the number of rooms, ownership, facilities offered, target market, etc. 

Categories of Hotels:


This category of hotels usually provides a limited range of facilities and services but adheres to a high standard of the facility-wide cleanliness.


These categories of hotels provide good accommodation and well-furnished bedrooms, each with a telephone and also with an attached private bathroom.


This kind of hotel has more spacious rooms and adds high-class decorations and furnishings and entertaining tools like TV. It also offers bar and lounge facilities too.


This hotel is much more comfortable and larger in space and provides excellent dining, room service, and other facilities.


A hotel in this category usually offers the most luxurious premises, a huge range of guest services, swimming pool, and sports, spa and exercise facilities



Based on the size (number rooms) hotels are divided into 5 categories:

  • Small: Hotels having 25 or less than 25 rooms
  • Medium: Hotels having 25 – 100 rooms.
  • Large: Hotels with a minimum of 101 rooms and a maximum of 300 rooms.
  • Very Large: More than 300 rooms.
  • Mega: Hotels having more than 1000 rooms.
  • Chain Hotels: Big hotel chains having multiple hotels in various locations.

2.Levels Of Service

  • World-class service:

This range of hotels also called luxury hotels, their primary targeted customers are top business executives, celebrities from the entertainment industry, high- ranking political figures, and wealthy clientele. They provide sophisticated and well-equipped restaurants and lounges, concierge services, and also private dining facilities. Living rooms and bedrooms are oversized and facilitated with amenities like heated and plush bath towels, large soaps bars, shampoo, shower caps, and all amenities. Apart from all luxury hotels give personalized services to their guests and strives to turn their stay into an experience.

  • Mid-Range Service:

Hotels in this segment usually concentrate on the largest segment of the traveling public. These hotels will maintain their business with adequate staff and provide limited services but not elaborate. Target customers for these kinds of hotels include business people, individual travelers, and families. These hotels usually offer food and beverage room service, coffee shop, lounge, wi-fi, special restaurant facility, entertainment equipment like TV in rooms, etc.

  • Economy / Limited Service:

These hotels are very cheap and inexpensive compared to mid and high range hotels. These hotels usually concentrate on providing clean and comfortable services to meet the basic needs of their guests, also ensuring safety. Many of the times these categories of hotels do not offer food and beverage facilities.

3.Ownership and Affiliations

Another way of classifying hotels is based on ownership and affiliation. In general, they are of two types which include individual hotels and chain hotels

  • Independent Hotels:

These kinds of hotels were considered as individual establishments without having any identifiable ownership or management affiliations with other facilities. Examples for these hotels are family owned and operated hotel which does not allow any corporate policies and procedures. The advantage of an independent hotel is ts autonomy and disadvantage will be not having a great chance of broad advertising exposure or management insight and consultancy of an affiliated property.

  • Chain Hotels:

This model of ownership, in general, imposes certain basic standards, rules, policies, and procedures to coordinate affiliate activities. Some chains have strong control over management, architecture, infrastructure, and other standards of affiliated facilities. 

4.Target market:

Based on the clientele and the range of guests they address hotels that were classified into different types. Below mentioned is the list of different types of hotels classified based on the target market:

  1. Business Hotels 
  2. Airport Hotels 
  3. Suite Hotels
  4. Extended Stay Hotels 
  5. Apartment Hotels 
  6. Resort Hotels
  7. Bed and Breakfast Hotels
  8. Casino Hotels
  9. Conference Centres 
  10. Convention Centres

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