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Jun 14, 2012

Classification and hotel concepts

Abstract
Hotels in India can be broadly classified into two segments - star hotels and hotels awaiting classification. In addition, there are several important hotel concepts, depending on the nature of service provided. This is independent of the broader classification standards.

Key Issues
- How are hotels in India classified?
- What are the various hotel concepts?
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No part of this Report may be published/reproduced/distributed in any form without CRISIL’s prior written approval.

The hotel industry in India can broadly be classified as follows:

Classification of hotels by Ministry of Tourism

Source: CRISIL Research

Starred hotels
Star Hotels
As per guidelines given by the Ministry of Tourism, hotels are classified into, 5-star deluxe, 5-star, 4-star, 3-star, 2-star and 1-star.
The ministry re-classifies hotels every 5 years.

Facilities and services in star hotels

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No part of this Report may be published/reproduced/distributed in any form without CRISIL’s prior written approval.

Instances of starred hotels

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No part of this Report may be published/reproduced/distributed in any form without CRISIL’s prior written approval.

Heritage Hotels
Heritage hotels include old palaces, forts and havelis that have been converted into hotels. To be classified as a heritage hotel, the structure should have a minimum of 50 per cent of the floor area built before 1950 and no substantial change is to be made to the facade. Heritage hotels are further classified into:
Heritage basic: This category covers residences, havelies, hunting lodges, castles, forts and palaces built prior to 1950 and subsequent to 1935. The hotel should have a minimum of five rooms (10 beds).
Heritage grand / heritage classic: This category covers residences, havelies, hunting lodges, castles, forts, palaces built prior to 1935. The hotel should

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