TH1801
Classification of Hotels
A hotel is defined as “an establishment held out by the proprietor as offering sleeping accommodation to any
person who appears able and willing to pay a reasonable sum for the services and facilities provided and who
is in a fit state to be received” (Chibili, 2016). In other words, it is a facility that offers bed, food, and other
related services for whatever purpose the guest may have.
There are two (2) main reasons for classifying hotels (Chibili, 2016):
• To analyze the market sector and, as such, help in making comparisons, carrying out performance
analyses, determining customer needs, identifying market gaps, and establishing future strategies
• To describe the type of hotel for advertising.
As mentioned in Grading System, the most conventional way of classifying hotels these days is according to
their respective level of accommodation standards. Therefore, hotels can also be classified according to the
following (Chibili, 2016):
• Location – This generally refers to the geographic position of the hotel that is mostly determined in
towns and cities. Hotels can be classified according to where it is located.
o Downtown hotel – This is mostly located within city centers and has the notable advantage of
proximity to office complexes, retail stores, and night entertainment centers.
o Suburban hotel – This is located further towards the outskirts of the cities and is generally not
far from the main transport arteries.
o Highway hotel (Motel) – This is located along major highways, generally providing inexpensive,
easily accessible overnight accommodation while offering minimal banqueting and meeting
spaces with or without food and beverage facilities.
o Airport hotel – This is specifically designed to accommodate air travelers and airline crews. It
can vary depending on the size and location of the airport they are servicing. It also typically
offers guests’ shuttle services and courtesy vans to and from the airports.
o Floating hotel – This is permanently located on rivers, seas, or big lakes.
o Rural hotel – This is generally small that offers limited service and is usually found in remote
areas.
• Target Market – A hotel can also be classified based on the type of guest it caters.
o Commercial Hotel – This offers food and accommodation services to people traveling for
business.
o Tourist Hotel – This offers food and accommodation services to people traveling for pleasure.
o Resort Hotel – This offers food and accommodation services to people traveling for pleasure
that are usually found on scenic spots.
A hotel can also be classified based on the expected length of stay of its guests.
o Residential hotel - provides accommodation for guests staying for a long time.
o Transient hotel - caters to guests who stay for a short period.
02 Handout 1 *Property of STI
student.feedback@sti.edu Page 1 of 3
TH1801
• Size – A hotel can be classified according to its size, such as small-sized, medium-sized, or large-sized
hotel. The number of rooms within each classification varies from one (1) country to another. This
enables hotels with similar sizes or number of rooms to compare operating procedures and statistical
results.
• Facilities – Hotels also vary depending on the standards of services and facilities these offer.
o Full-service Hotel – This provides a wide selection of guest services in addition to
accommodation, such as health, sports, and business facilities.
o Budget Hotel – This provides cheaper and more basic guestrooms with limited services.
o Self-catering Hotel – This only provides accommodation and no other service. Guests are
expected to prepare their own food, clean and tidy their room, and do their own laundry,
though some offer a weekly cleaning service.
• Ownership – Another way to classify hotels is by its ownership.
o Private – This is an independent hotel owned by a person, a partnership, or a private company.
o Local group – This includes several hotels owned by a local company.
o International group – A hotel may be a part of an international chain of hotels.
Management and Operations of Hotels
A hotel is usually divided into three (3) main divisions (Chibili, 2016).
• Rooms Division – This handles all matters pertaining to room accommodation and maintenance. It is
considered as one of the main operational areas in a hotel. Many hoteliers say that a properly
functioning rooms division is vital to a hotel’s success since this is where they generate most of the
revenue.
This division covers the following departments:
o Housekeeping Department handles guestrooms make up and maintenance, public area
maintenance, and linen and laundry service.
o Front Office Department handles reception, registration and guest relations assistance
(concierge, guest services, business, and cashiers), bell service, and telephone exchange.
o Room Sales and Reservations handles the reservation process from arrival registration to
check out confirmation.
• Food and Beverage (F&B) Division – This normally forms an integral part of a full-service hotel and
usually has the greatest number of employees among the other divisions of a hotel. It is designed to
provide food and beverages to hotel clients and guests. This is also concerned with food and beverage
preparation and service, which covers the following:
o Food Outlets include restaurants and bars.
o Room Service refers to the service of meals or drinks provided for guests in their rooms.
o Banquets and Catering refer to a variety of occasions when guests or clients may eat at various
times in the facility, which can either be formal or informal.
o Kitchen refers to the service area where each food or meal is cooked and prepared.
02 Handout 1 *Property of STI
student.feedback@sti.edu Page 2 of 3
TH1801
• Administrative Division – This is concerned with administrative and office matters and covers the
following (back office departments): human resources department, engineering or facilities
maintenance, accounting, purchasing, cost control and warehouse, and security office.
The first two (2) divisions (Rooms and F&B) are directly involved in operations and service delivery. These are
known as the Front-of-the-House since they are at the frontline and situated in guest contact areas. Most of
their service personnel directly deal with guests, which is why these personnel are called front liners. On the
other hand, the administrative division is the one behind the scenes, also known as the Back-of-the-House;
personnel from the said division are not in guest contact areas.
References:
Chibili, M. N. (2016). Modern hotel operations management. New York: Routledge, Taylor & Francis Group.
Tuazon - Disimulacion, M. A. (2016). Principles of tourism 2. Mandaluyong: Books Atbp. Publishing Corp.
Velasco, E. O., Javier, D. A., & Perez, E. (2017). Hospitality and tourism marketing with mc. Intramuros:
Unlimited Books Library Services And Publishing, Inc.
Walker, J. R. (2017). Introduction to hospitality. Harlow: Pearson.
02 Handout 1 *Property of STI
student.feedback@sti.edu Page 3 of 3