Hotels - Classification and Evolution

Hotels - Classification and Evolution

Hotel :
The word Hotel is derived from the word "Hote" which meant Host. Hotel is a place where a bona fide traveller can receive food and shelter, provided he is position to pay for and is in fit condition to be received. Bona fide is legal traveller , travelling for purpose . They are commercial establishments that provides fooding and Accomodation for paying guests. City hotel New York was the first commercial hotel of the world while Hotel Royal was first commercial hotel of Nepal. In India, Hotel Taj Mahal was the first hotel. 


The concept of chain hotel came in 1920 under stewardship of EM Statler. Chain hotel are group of hotel and restaurant running in different places in and out of country under one brand name. They run under Franchise, Management contract , lease or profit sharing basic. They are group of hotel sharing common name and ownership. They run in different places under one brand name .

World famous chain Hotel 

Holiday Inn
Inter continental
Crown plaza

They all originated from U.S.A

Similarly , There are many other brands other than originated in U.S.A like -

Four season - Canada
Meridien - France 
Accor - France
Taj - India
Oberoi - India
Trident - India
Atlantis The palm - Dubai
Shangri-la - Hong Kong


Soaltee crowne plaza
Hyatt Regency 
Radisson Hotel
Fairmont Marriott


Pizza Hut
Hot breads
Yellow chilly

Domestic Chain Hotel in Nepal 

The Bakery cafe
Nanglo cafe
Siddhartha group of Hospitality
Bajeko sekuwa
Indreni group

Classification of Hotel 

The term Hotel is derived from French word ' Hote' which meant host. The first commercial Hotel of the world was city Hotel in New York whereas, Hotel Royal was the first commercial of Nepal. Hotel are of various types and the criteria for their classification are :-

1. Location
2. Size of property
3. Based on level of service
4. Based on Target market
5. Based on theme
6. Based on length of stay
7. Based on star rating.

1. Based on location :-

  • Downtown Hotel :- They are located in the heart of city and are in short distance from shopping areas , theatres and business centre. The rate is expensive and it is used mostly by Businesses man.

  • Sub - urban Hotel  :- Here,the rate is moderate to low and they have advantage of quieter surrounding.

  • Motel :- It is for highway travellers. Parking spaces, garage and petrol stations are provided. Motels are located in Highway.

  • Airport Hotel :- these are setup near Airport . They can be register for a day or few hour .

  • Resort Hotel :- They cater to people who wants to relax and enjoy themselves near natural beauties

  • Forest Hotel :- These Hotels are located with in forest range and provide good source of entertainment for guest

  • Rotels :- They are Hotels on wheel. 

  • Floatel : - They are lodging properties that float on surface of water

2. Size of property :-

  • Small hotel :- They contain 25 rooms and needed less human resources

  • Medium Hotel :- They contain 26 to 100 Rooms

  • Large Hotel :- basically, they contain 101-300 bed

  • Very large Hotel :- They contain 301 to 1000 rooms

  • Mega hotel :- They are of international standard and have more than 1000 beds

3. Based on Target Market :-

  • Commercial hotel :- They are designed on European plan . These hotel caters Mostly to businesses Man. European plan consists of room rate only.

  • Convention Hotel :- They cater to people attending a convention , conference or seminars

  • Resort :- These are for people who want to relax and enjoy themselves.

  • B and B hotels :- It offers bed and breakfast only 

  • Casino Hotel :- They are hotel with gambling facilities and are opened 24 hour a day.

4. Based on level of service :-

  • Economy/ budget hotel :- It focus on the basic needs of guest by  providing clean , comfortable and inexpensive Rooms 

  • Mid - scale hotel :-  It is appropriate furnished and it is with cooking utensils, Microwave oven and Refrigerator.

  • Luxury hotel :- They provides world class service . Primary Market of these hotels are for  celebrities , business executives and high ranking political figures.

5. Based on length of stay :-

  • Transient hotel :- Guest can stay for short duration usually a day or some hours . They are particularly Airport hotels.

  • Residential hotel :- the guest can stay from a month to year. Normally , they provide apartment hotel for convenience guest stay. Guest can stay for long time.

  • Semi - residential hotel :- the duration of guest stay in this hotel range from few weeks to some months.

6. Based on theme :- 

  • Heritage hotel :- they are the hotel having historical value.

  • Boutique hotel :- boutique hotel have unique furniture and design

  • Ecotels. - They are environment friendly hotels which give priority on Re -cycle and Re-use.

  • Spas :- Spa resort is hotel providing therapeutic bath and massage with other feature of luxury hotel.

7. Based on star rating :-

  • One star hotel :- They are small and independent i.e they are not chain affiliated there may be limited range of facilities and limited menu is served. Comfort , cleanliness should be off acceptable standard

  • Two - star hotel :- they are small to medium and offered more facilities than one star hotels. Guest can expect cleanliness, comfortable and well equipped overnight accommodation.  Wide range of cuisine are served than one star hotel

  • Three - star hotel :- they offered high quality facilities and services . All bedrooms have en suite bathroom and dryer , telephone, comfort and more Equipments than lower star hotel. 

  • Four - star hotel :- Expectation at this level include a degree of luxury as well as quality in the furnishing, decoration and Equipment. There will well designed room with great furnishing and decoration. The bathroom will have both hot and cold water provision, room service 24 hour , laundry and dry cleaning services. Various cuisines are offered and menu is quite large

  • Five - star hotel :- They offer luxury accommodation of international standard. The decoration, furnishing is very high , comfortable and elegance . The service is also formal and well supervised. Guest needed are given very priority.  Staff will also be knowledgeable, helpful . A five star hotel should have minimum 25 room and bath tub, sockets for electric shavers , 24 hour hot and cold water supply, coffee shop, swimming pools, fire fighting arrangements , telephone, laundry, conference services , health club , central air conditioned room. E.t.c

Organization Chart of Hotel 

            Chairman / president
                Managing Director
                  Board of directors
                   General Manager
                               | ---------------- Secretary
               Assistant General Manager
 Operational.                           Functional
 Department.                           department

Chairman is the head and below him there are managing director . Further below there are board of directors and general manager. There are operational and functional Department. Functional Department are supporting department of hotel while operational department are those Department where actual guest interaction took place and Product and service are put together in hand for guest. 

The operational Department is divided into Accomodation Department and food and beverage department. The accomodation Department consists of front office , Housekeeping, security, telephone ,lobby . Similarly , the food and beverage department consists of food production, food and beverage service and food and beverage controller

Now , The Functional Department consists of purchase and store , sales and marketing , Account and finance , Human resource management department. 

Similarly, in the view point of Revenue generation


Housekeeping department
Front office department
Food and beverage Department
Food production department
Telephone Department


HRM Department
Purchase and store Department
Security department
Sales and Marketing Department
Engineering and Maintenance Department
Account and Finance Department

Note - The duties , Function and Responsibilities I have shown in details please search for that . 

Evolution of Hotel in Nepal

With the dawn of democracy in 1950 A.D , Foreign tourist were officially allowed to enter Nepal. Mr. Nara samsher who had traveled abroad felt the need of quality of a hotel in Kathmandu and opened ' Hotel Jawalakhel ' in Jawalakhel (in 1952) . The manager was Tom mandis who was invited from India. The project did not last long and Mr. Mandis opened snow view hotel at lajimpat. The real growth of Hotel industry in Nepal begin at 1955 A.D when Boris lissanevitch opened first tourist standard hotel with name Royal Hotel at Bahadur Bhawan. He have migrated to Nepal from Russia. He have successfully organized banquet party for 160 royal guests at time of king Mahendra. The other person who contributed to the growth of hotel industry was Mr. George leberce , director , general of Tourism who had come to Nepal on government request to advice tdevelopment.

In year 1964 Mr. Ran Shankar opened the first four star hotel of Nepal ' Hotel shankar' . Hotel Annapurna was given first star hotel of Nepal started in 1965 Hotel soaltee was established in 1966. Then other Hotel slowly emerged in different tourism location developing Hotel industry to significant height.

Some popular Hotels in Nepal

5 star Hotel
Hotel De Annapurna
Hotel soaltee Crowne plaza
The yak and yeti Hotel
Shangri - la Hotel
Hyatt Regency
Hotel Radisson
Hotel Malla

4 star Hotel 
Hotel Shankar
Hotel Himalayan
Gokarna Forest resort

3 star Hotel 
Hotel summit
Hotel Dwarika
Hotel xenial
Airport Hotel
Platinum Hotel
Hotel Barahi
Hotel Tibet
Hotel Manang

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