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Hotel Classification

What is Hotel Classification?
Updated 
October 17, 2024
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Published 
October 17, 2024

Hotel classification systems — how do they work? There are star ratings, different property categories and various types of hotels, all of which attempt to give guests a framework of what to expect. The star rating system is likely the most familiar, but even that can be ripe with confusion, as star scales can vary widely. 

Typically, accommodations are classified based on what type of hotel they are (i.e. luxury, boutique, etc.), their star rating and the type of property. To better explain this, we’ve created a  guide below  with all the details.

How Are Hotels Classified?

The umbrella term of “hotel classification” refers to the framework that gives guests an understanding of what they can expect when booking a certain hotel. Hotels are typically classified based on factors like level of service (e.g. limited or full service), amenities and the details of the property. 

Common Types of Hotels

One common way that hotels are categorized is by their niche, such as if they are a uniquely located boutique or an extravagant resort. Understanding these categories allows you to tailor your marketing and attract the right guests. Here are a few examples of hotel types:

Luxury hotels: Luxury hotels combine opulence with exceptional service, extensive amenities, fine dining and spacious rooms. They cater to high-end travelers who expect an elevated experience to be the default.

Resort hotels: Typically nestled in scenic locations, resort hotels offer a full range of leisure facilities such as pools, fitness centers and on-site entertainment that provide a localized vacation experience.

Boutique hotels: Boutique hotels are often smaller in size with a unique design aesthetic and personalized service. They’re a good option for travelers seeking an intimate and stylish stay.

Business hotels: Conveniently located near prominent business districts, business hotels provide amenities catering to professional travelers, such conference rooms and coworking spaces.

Extended-stay hotels: Extended-stay hotels are geared towards longer stays, featuring kitchenettes or in-room kitchens, laundry facilities and a more residential feel.

What Determines a Hotel’s Star Rating?

One of the most familiar ways a hotel is ranked is by star ratings. There’s no universal standard for these ratings, but there are a few factors typically considered:

  • Room size and amenities. Room details such as square footage, furniture quality and in-room amenities
  • Guest services: Services offered, such as 24-hour reception, concierge, valet parking and room service
  • Dining options: The presence of on-site restaurants, the variety of cuisines offered and room service availability
  • Location: Proximity to key attractions, transportation hubs and the overall desirability of the area

Beyond Star Ratings: Hotel Property Categories

Another crucial aspect of hotel classification is the category of the property. There are several types of properties that influence the level of service a guest will expect.

Full-service hotels: Offering the widest array of amenities and services, full-service hotels cater to all of a guest’s needs. A full-service hotel typically offers nearly everything a guest could need within the hotel, from dining to laundry to spa services and more.

Limited-service hotels: These hotels focus on providing comfortable accommodations at a more affordable price point. They offer fewer amenities compared to full-service properties, but sometimes have offerings such as a minibar or an in-hotel restaurant.

Bed and breakfasts (B&Bs): Offering a homey atmosphere and often located in historic buildings, bed and breakfasts typically offer complimentary breakfast, afternoon activities and amenities that highlight the local area, such as bike rentals.

Hostels: The most budget-friendly accommodation type, hostels are typically dorm-style or private rooms with shared bathrooms. Hostels tend to cater to a younger demographic looking to meet others and socialize on their travels.

Leveling Up Your Hotel's Classification

By understanding the different hotel classification systems, you can  effectively position your property — and help determine which value-adds to offer guests to elevate your hotel’s classification. 

One way to do this is by providing guests with a modern, streamlined experience. Offering services such as mobile check-in and checkout, the ability to purchase upgrades from mobile devices and instant, AI-powered customer service provides travelers an elevated experience.

Investing in a digital Guest Journey Platform allows your hotel to go above and beyond without increasing the workload for your staff. Learn more about the guest management solutions Canary offers by booking a demo today.

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