The hotel industry is so vast that many hotels do not fit into single well defined category. Industry can be divided in various ways. Some of
the international chains are Hyatt, Marriott, and Le Meridien etc.
1. Based on location
- City center: Generally located in the heart of city within a short distance from business center, shopping arcade.
- Resort hotels: They are also termed as health resort or beach 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.
- Floating hotels: It is located on river, sea or big lakes.
- Boatels: A house boat hotels is referred as boatels, which offers luxurious accommodation to travelers.
2. Based on the Level of Service
Classified into economy, and luxury on the basis of the level of
service they offer.
- Economy/ Budget hotels: These meet the basic need of the guest by providing comfortable and clean room for a comfortable stay.
3. Based on the Length of Stay
Can be classified into transient, residential and semi residential depending
on the stay of a guest.
- Transient Hotel: These are where guest stays for a day or even less, they are usually five star hotels. The occupancy rate is usually very high. These hotels are situated near airport.
- Residential hotels: These are the hotel where guest can stay for a minimum period of one month and up to a year. The rent can be paid on monthly or quarterly basis. They provide sitting room, bed room and kitchenette.
- Semi residential hotels: These hotels incorporate features of both transient and residential hotel.
4. Based on Theme
Depending on theme hotel may be classified into Heritage hotels, Ecotels, Boutique
hotels and Spas.
- Heritage hotel: In this hotel a guest is graciously welcomed, offered room that have their own history, serve traditional cuisine and are entertained by folk artist. These hotels put their best efforts to give the glimpse of their region. Example: Jai Mahal palace in Jaipur.
- Ecotels : these are environment friendly hotels these hotel use eco friendly items in the room. Example: Orchid Mumbai is Asia first and most popular five star ecotel.
- Boutique hotels: This hotel provides exceptional accommodation, furniture in a themed and stylish manner and caters to corporate travelers. Example: In India the park Bangalore is a boutique hotel.
- Spas: is a resort which provide therapeutic bath and massage along with other features of luxury hotels in India Ananda spa in Himalaya are the most popular Spa.
5. Based on Target Market
- Commercial hotel: They are situated in the heart of the city in busy commercial areas so as to get good and high business. They cater mostly businessmen.
- Convention hotels: These hotels have large convention complex and cater to people attending a convention, conference
Example: Le meridien, Cochin, is a hotel with largest convention center in south India.
- Resort hotels: These leisure hotels are mainly for vacationers who want to relax and enjoy with their family. The occupancy varies as per season. The atmosphere is more relaxed. These are spread out in vast areas so many resorts have solar powered carts for the transport of guest.
- Suite hotels: These hotel offer rooms that may include compact kitchenette. They cater to people who are relocating act as like lawyers, executives who are away from home for a long business stay.
Casino hotels: Hotel with predominantly gambling facilities comes under this category, they have guest room and food and operation too. These hotels tend to cater leisure and vacation travelers. Gambling activities at some casino hotels operate 24 hours a day and 365 days a year

Example: Las Vegas in United State is Famous for Casino hotels.
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