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1.3 Type of hotel industry 
 
 There are two ways to categorize hotels: by functions or by star ratings 
 
By functions, hotel has been classified into several types as follows:  
•
 
Commercial Hotel 
•
 
Airport Hotel 
•
 
Conference Center 
•
 
Economy Hotel 
•
 
Suite or All-Suite Hotel 
•
 
Residential Hotel or Apartment Hotel 
•
 
Casino Hotel 
•
 
Resort Hotel 
 
- Commercial Hotel:  
A chain of hotels which have standardized service and amenity structures 
- Airport Hotel:   
Hotel near the airport but it does not have to be connected or adjacent to the airport (although 
some are); it could be located up to five miles away. Most airport hotels have a shuttle to and 
from the terminals (Charlyn Keating Chisholm, about.com. guide) 
- Conference Center:  
A specialized hotel (usually in a less busy but easily accessible location) designed and built 
almost exclusively to host conferences, exhibitions, large meetings, seminars, training 
sessions, etc. A conference center often also provides office facilities and a range of leisure 
activities (Businessdictionary)  
- Economy Hotel:  
A hotel offering few amenities (J.K. Krishan, “Dictionary of Tourism”, Gyan Books, 2005) 
- Suite or All-Suite Hotel: 
A hotel in which every rooms has an attached living room and/or kitchen 
- Residential Hotel or Apartment Hotel:  

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A serviced apartment complex uses a hotel-style booking system. It is similar to renting an 
apartment, but with no fixed contracts and occupants can 'check-out' whenever they wish 
(Wikipedia) 
- Casino Hotel:  
A business establishment combines a casino and a hotel or a building that houses both a hotel 
and a casino. 
- Resort Hotel:  
A hotel caters primarily to vacationers and tourist and typically offers more recreational 
amenities and services in a more aesthetically pleasing setting, than other hotels. These hotels 
are located in attractive and natural tourism destinations and their clientele are groups and 
couples that like adventure with sophistication and comfort. The attractions vary depending on 
the region and some might offer golf, tennis, scuba diving and, depending on the natural 
surroundings, may also arrange other recreational activities. 
 
 
By Star Ratings, hotel has been classified into several types as follows:  
•
 
Five Star Hotel 
•
 
Four Star Hotel 
•
 
Three Star Hotel 
•
 
Two Star Hotel 
•
 
One Star Hotel 
•
 
No Category Hotels 
 
-
 
Five Star Hotel: 
Luxury hotels; most expensive hotels/resorts in the world; numerous extras to enhance the 
quality of the client's stay, for example, some have private golf courses and even a small 
private airport. (“Hotel Glossary of Terms”, Marsh) 
-
 
Four Star Hotel:  
First class hotels; expensive (by middle-class standards); has all of the previously mentioned 
services; has many "luxury" services, for example, massages or a health spa. (“Hotel 
Glossary of Terms”, Marsh) 

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-    Three Star Hotel:  
Middle class hotels; moderately priced; has daily maid service, room service, and may have 
dry-cleaning, internet access and a swimming pool. (“Hotel Glossary of Terms”, Marsh) 
-
 
 Two Star Hotel:  
 Budget hotels; slightly more expensive; usually has maid service daily. (“Hotel Glossary of     
Terms”, Marsh) 
-   One Star Hotel:  
Low budget hotels; inexpensive; may not have maid service or room service. (“Hotel Glossary 
of Terms”, Marsh) 
-
 
No Category Hotels:  
These hotels include motels, cottages, bungalows and others with limited services. However, 
these hotels represent 41% of the total hotel market share. (“Hotel Glossary of Terms”, Marsh) 
 
1.4 Growth and latest trends 
 
In 2009, due to the economic downturn in the whole world, the hotel industry faced many 
difficulties which revealed in the decrease in all the financial indicators in almost countries all 
over the world. To overcome the downturn, hoteliers had to apply many methods to cut down the 
cost as much as they could as well as strike to balance with impact on the customer satisfaction.  
As a result, in 2010 the hotel industry has the positive growth in the key performance indicators 
such as occupancy (Occ), ADR (Average Daily Rate) and RevPAR (Revenue Per Available 
Room). 
 

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Table 1: Global performance 
(Monetary unit in euro) 
Year to Date-June 2010 vs June 2009 
Occ% ADR RevPAR 
Change from June 
2009% 
  
2010 2009  2010
2009
2010
2009
Occ ADR RecPAR 
Asia Pacific 
63.9 56.7  97.35
86.3 62.23 48.91 12.8  12.8 
27.2
Central & South 
Asia 62 
54.5 
123.04 121.45 76.29 66.16 13.8 
1.3 
15.3
Northeastern Asia 
61.4  52.8 
91.88
84.25
56.4 44.55 16.1 
9.1 
26.6
Southeastern Asia 
64.8  57.8 
91.43
80.2 59.24 46.38
12 
14 
27.7
Australia & 
Oceania 71.3 
67 
108.09
86.85 77.11 58.15
6.5 
24.5 
32.6
Americas 
56.7 54.2  76.55
75.22 43.37
40.8
4.5  1.8 
6.3
North America 
56.5  54.1 
75.62
74.37 42.69 40.21
4.4 
1.7 
6.2
Caribbean 66.2 
64.9 
131 125.64 86.72 81.54
2 
4.3 
6.4
Central America 
63  57.5 
93.04
94.05 58.57
54.1
9.4 
-1.1 
8.3
South America 
62.4  57.1 
88.57
79.56 55.29 45.44
9.3  11.3 
21.7
Europe 
60.7 57.6 
97
95.21 58.91 54.88
5.4  1.9 
7.4
Eastern Europe 
50.9  47.4 
86.38
89.26 43.98 42.35
7.3 
-3.2 
3.8
Northern Europe 
64.1  62.1 
92.54
88.81 59.28 55.14
3.2 
4.2 
7.5
Southern Europe 
57.3  53.1 
93.71
96.28 53.69 51.08
8 
-2.7 
5.1
Western Europe 
62.4 
59  108.49 104.33 67.75 61.56
5.8 
4 
10.1
Middle 
East/Africa 
62.4 62.1 120.23 116.02 75.04 72.03
0.5  3.6 
4.2
Middle East 
62.4  63.6  152.91 163.77 95.36 104.2 -1.9 
-6.6 
-8.4
Northern Africa 
68.9  63.1 
68.13
62.76 46.96 39.58
9.3 
8.6 
18.6
Southern Africa 
57.1  58.8  114.79
89.18 65.54 52.46 -2.9  28.7 
24.9
Source: 2010 STR Global Limited 
 

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