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The Peninsula New York hotel, located at the corner of Fifth Avenue and 55th Street in Midtown Manhattan

A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a refrigerator, and other kitchen facilities, upholstered chairs, a television, and en-suite bathrooms. Small, lower-priced hotels may offer only the most basic guest services and facilities. Larger, higher-priced hotels may provide additional guest facilities such as a swimming pool, a business center with computers, printers, and other office equipment, childcare, conference and event facilities, tennis or basketball courts, gymnasium, restaurants, day spa, and social function services. Hotel rooms are usually numbered (or named in some smaller hotels and B&Bs) to allow guests to identify their room. Some boutique, high-end hotels have custom decorated rooms. Some hotels offer meals as part of a room and board arrangement. In Japan, capsule hotels provide a tiny room suitable only for sleeping and shared bathroom facilities.

The precursor to the modern hotel was the inn of medieval Europe. For a period of about 200 years from the mid-17th century, coaching inns served as a place for lodging for coach travelers. Inns began to cater to wealthier clients in the mid-18th century. One of the first hotels in a modern sense was opened in Exeter in 1768. Hotels proliferated throughout Western Europe and North America in the early 19th century, and luxury hotels began to spring up in the later part of the 19th century, particularly in the United States.

Hotel operations vary in size, function, complexity, and cost. Most hotels and major hospitality companies have set industry standards to classify hotel types. An upscale full-service hotel facility offers luxury amenities, full-service accommodations, an on-site restaurant, and the highest level of personalized service, such as a concierge, room service, and clothes-ironing staff. Full-service hotels often contain upscale full-service facilities with many full-service accommodations, an on-site full-service restaurant, and a variety of on-site amenities. Boutique hotels are smaller independent, non-branded hotels that often contain upscale facilities. Small to medium-sized hotel establishments offer a limited amount of on-site amenities. Economy hotels are small to medium-sized hotel establishments that offer basic accommodations with little to no services. Extended stay hotels are small to medium-sized hotels that offer longer-term full-service accommodations compared to a traditional hotel.

Timeshare and destination clubs are a form of property ownership involving ownership of an individual unit of accommodation for seasonal usage. A motel is a small-sized low-rise lodging with direct access to individual rooms from the car parking area. Boutique hotels are typically hotels with a unique environment or intimate setting. A number of hotels and motels have entered the public consciousness through popular culture. Some hotels are built specifically as destinations in themselves, for example casinos and holiday resorts.

Most hotel establishments are run by a general manager who serves as the head executive (often referred to as the "hotel manager"), overseeing the entire operation and ensuring all departments function cohesively, department heads who oversee various departments within a hotel (e.g., food service), middle managers, administrative staff, and line-level supervisors. Each department head manages their specific area, trains staff, handles departmental budgets, and ensures their team delivers quality service that aligns with the hotel’s standards. The organizational chart and volume of job positions and hierarchy varies by hotel size, function and class, and is often determined by hotel ownership and managing companies.

Etymology

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A typical hotel room with a bed, desk, and television

The word hotel is derived from the French hôtel (coming from the same origin as hospital), which referred to a French version of a building seeing frequent visitors, and providing care, rather than a place offering accommodation. In contemporary French usage, hôtel now has the same meaning as the English term, and hôtel particulier is used for the old meaning, as well as "hôtel" in some place names such as Hôtel-Dieu (in Paris), which has been a hospital since the Middle Ages. The French spelling, with the circumflex, was also used in English, but is now rare. The circumflex replaces the 's' found in the earlier hostel spelling, which over time took on a new, but closely related meaning. Grammatically, hotels usually take the definite article – hence "The Astoria Hotel" or simply "The Astoria".

History

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The Tabard Inn, Southwark, London

Facilities offering hospitality to travellers featured in early civilizations. In Greco-Roman culture and in ancient Persia, hospitals for recuperation and rest were built at thermal baths. Guinness World Records officially recognised Japan's Nishiyama Onsen Keiunkan, founded in 705, as the oldest hotel in the world.[1] During the Middle Ages, various religious orders at monasteries and abbeys would offer accommodation for travellers on the road.

The precursor to the modern hotel was the inn of medieval Europe, possibly dating back to the rule of Ancient Rome. These would provide for the needs of travellers, including food[2] and lodging, stabling and fodder for the traveller's horses and fresh horses for mail coaches. Famous London examples of inns include the George and the Tabard. A typical layout of an inn featured an inner court with bedrooms on the two sides, with the kitchen and parlour at the front and the stables at the back.[3]

For a period of about 200 years from the mid-17th century, coaching inns served as a place for lodging for coach travellers (in other words, a roadhouse). Coaching inns stabled teams of horses for stagecoaches and mail coaches and replaced tired teams with fresh teams. Traditionally they were seven miles apart, but this depended very much on the terrain.

Tremont House in Boston, United States, a luxury hotel, the first to provide indoor plumbing
The Boody House Hotel in Toledo, Ohio

Some English towns had as many as ten such inns and rivalry between them became intense, not only for the income from the stagecoach operators but for the revenue from the food and drink supplied to the wealthy passengers. By the end of the century, coaching inns were being run more professionally, with a regular timetable being followed and fixed menus for food.[4]

Inns began to cater to richer clients in the mid-18th century, and consequently grew in grandeur and in the level of service provided. Sudhir Andrews traces "the birth of an organised hotel industry" to Europe's chalets and small hotels which catered primarily to aristocrats.[5] One of the first hotels in a modern sense, the Royal Clarence, opened in Exeter in 1768, although the idea only really caught on in the early-19th century. In 1812 Mivart's Hotel opened its doors in London, later changing its name to Claridge's.[6]

Hotels proliferated throughout Western Europe and North America in the 19th century. Luxury hotels, including the 1829 Tremont House in Boston, the 1836 Astor House in New York City,[7] the 1889 Savoy Hotel in London, and the Ritz chain of hotels in London and Paris in the late 1890s, catered to an ever more-wealthy clientele.

Title II of the Civil Rights Act of 1964 is part of a United States law that prohibits discrimination on the basis of race, religion, or national origin in places of public accommodation.[8] Hotels are included as types of public accommodation in the Act.[9]

International scale

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Hotels cater to travelers from many countries and languages, since no one country dominates the travel industry.

Country Hotel rooms in 2011–12[10][11] Average rooms per hotel[11] Overnight tourists traveling from each country, annual[10][11]
United States 4,900,000 93 58,000,000
China 1,500,000 132 83,000,000
Japan 1,370,000 27 18,000,000
Italy 1,100,000 32 29,000,000
Germany 950,000 27 72,000,000
Spain 900,000 47 12,000,000
Mexico 660,000 37 16,000,000
United Kingdom 650,000 17 57,000,000
France 620,000 36 26,000,000
Thailand 530,000 NA 6,000,000
Indonesia 410,000 25 7,000,000
Greece 400,000 41 5,000,000
Brazil 400,000 40 8,000,000
Turkey 330,000 117 16,000,000
Austria 290,000 22 11,000,000
Russia 260,000 33 44,000,000
Global total 21,000,000 41 876,000,000

Types

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Hotel operations vary in size, function, and cost. Most hotels and major hospitality companies that operate hotels have set widely accepted industry standards to classify hotel types. General categories include the following:

International luxury

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Four Seasons Hotel Moscow, Russia
Mandarin Oriental, Bangkok, Thailand
Rosewood London, England

International luxury hotels offer high-quality amenities, full-service accommodations, on-site full-service restaurants, and the highest level of personalized and professional service in major or capital cities. International luxury hotels are classified with at least a Five Diamond rating or Five Star hotel rating depending on the country and local classification standards. Example brands include: Grand Hyatt, Conrad, InterContinental, Sofitel, Mandarin Oriental, Four Seasons, The Peninsula, Rosewood, JW Marriott and The Ritz-Carlton.

Lifestyle luxury resorts

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Shangri-La's Fijian Resort in Yanuca Island, Fiji
Jumeirah Beach Hotel in Dubai, United Arab Emirates
Raffles Praslin, Seychelles

Lifestyle luxury resorts are branded hotels that appeal to a guest with lifestyle or personal image in specific locations. They are typically full-service and classified as luxury. A key characteristic of lifestyle resorts is focus on providing a unique guest experience as opposed to simply providing lodging. Lifestyle luxury resorts are classified with a Five Star hotel rating depending on the country and local classification standards. Example brands include: Waldorf Astoria, St. Regis, Wynn Resorts, MGM, Shangri-La, Oberoi, Belmond, Jumeirah, Aman, Taj Hotels, Hoshino, Raffles, Capella, Fairmont, Banyan Tree, Regent and Park Hyatt.

Upscale full-service

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Upscale full-service hotels often provide a wide array of guest services and on-site facilities. Commonly found amenities may include: on-site food and beverage (room service and restaurants), meeting and conference services and facilities, fitness center, and business center. Upscale full-service hotels range in quality from upscale to luxury. This classification is based upon the quality of facilities and amenities offered by the hotel.[12] Examples include: W Hotels, Sheraton, Langham, Kempinski, Pullman, Kimpton Hotels, Hilton, Swissôtel, Lotte, Renaissance, Marriott and Hyatt Regency brands.

Boutique

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Boutique hotels are smaller independent non-branded hotels that often contain mid-scale to upscale facilities of varying size in unique or intimate settings with full-service accommodations. These hotels are generally 100 rooms or fewer.[13]

Focused or select service

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Small to medium-sized hotel establishments that offer a limited number of on-site amenities that only cater and market to a specific demographic of travelers, such as the single business traveler. Most focused or select service hotels may still offer full-service accommodations but may lack leisure amenities such as an on-site restaurant or a swimming pool. Examples include Hyatt Place, Holiday Inn, Courtyard by Marriott and Hilton Garden Inn.

Economy and limited service

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Small to medium-sized hotel establishments that offer a very limited number of on-site amenities and often only offer basic accommodations with little to no services, catering to the budget-minded traveler seeking a "no frills" accommodation. Limited service hotels often lack an on-site restaurant but in return may offer a limited complimentary food and beverage amenity such as on-site continental breakfast service. Examples include Ibis Budget, Hampton by Hilton, Aloft, Holiday Inn Express, Fairfield by Mariott, and Four Points by Sheraton.

Extended stay

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Extended stay hotels are small to medium-sized hotels that offer longer-term full-service accommodations compared to a traditional hotel. Extended stay hotels may offer non-traditional pricing methods such as a weekly rate that caters towards travelers in need of short-term accommodations for an extended period of time. Similar to limited and select service hotels, on-site amenities are normally limited and most extended stay hotels lack an on-site restaurant. Examples include Staybridge Suites, Candlewood Suites, Homewood Suites by Hilton, Home2 Suites by Hilton, Residence Inn by Marriott, Element, and Extended Stay America.

Timeshare and destination clubs

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Timeshare and destination clubs are a form of property ownership also referred to as a vacation ownership involving the purchase and ownership of an individual unit of accommodation for seasonal usage during a specified period of time. Timeshare resorts often offer amenities similar that of a full-service hotel with on-site restaurants, swimming pools, recreation grounds, and other leisure-oriented amenities. Destination clubs on the other hand may offer more exclusive private accommodations such as private houses in a neighborhood-style setting. Examples of timeshare brands include Hilton Grand Vacations, Marriott Vacation Club International, Westgate Resorts, Disney Vacation Club, and Holiday Inn Club Vacations.

Motel

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A motel, an abbreviation for "motor hotel", is a small-sized low-rise lodging establishment similar to a limited service, lower-cost hotel, but typically with direct access to individual rooms from the car park. Motels were built to serve road travellers, including travellers on road trip vacations and workers who drive for their job (travelling salespeople, truck drivers, etc.). Common during the 1950s and 1960s, motels were often located adjacent to a major highway, where they were built on inexpensive land at the edge of towns or along stretches of freeway.

New motel construction is rare in the 2000s as hotel chains have been building economy-priced, limited-service franchised properties at freeway exits which compete for largely the same clientele, largely saturating the market by the 1990s. Motels are still useful in less populated areas for driving travelers, but the more populated an area becomes, the more hotels move in to meet the demand for accommodation. While many motels are unbranded and independent, many of the other motels which remain in operation joined national franchise chains, often rebranding themselves as hotels, inns or lodges. Some examples of chains with motels include EconoLodge, Motel 6, Super 8, and Travelodge.

Motels in some parts of the world are more often regarded as places for romantic assignations where rooms are often rented by the hour. This is fairly common in parts of Latin America.

In the United States, motels have a reputation for criminal activity such as prostitution and drug dealing.

Microstay

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Hotels may offer rooms for microstays,[14] a type of booking for less than 24 hours where the customer chooses the check in time and the length of the stay. This allows the hotel increased revenue by reselling the same room several times a day.[15] They first gained popularity in Europe but are now common in major global tourist centers.[16]

Management

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Hotel management is a globally accepted professional career field and academic field of study. Degree programs such as hospitality management studies, a business degree, and/or certification programs formally prepare hotel managers for industry practice.

Most hotel establishments consist of a general manager who serves as the head executive (often referred to as the "hotel manager"), department heads who oversee various departments within a hotel, middle managers, administrative staff, and line-level supervisors. The organizational chart and volume of job positions and hierarchy varies by hotel size, function, and is often determined by hotel ownership and managing companies.

Unique and specialty hotels

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Historic inns and boutique hotels

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Hotel Astoria and statue of Tsar Nicholas I in Saint Petersburg, Russia
Grand Hotel Viljandi in winter in Viljandi, Estonia

Boutique hotels are typically hotels with a unique environment or intimate setting. Some hotels have gained their renown through tradition, by hosting significant events or persons, such as Schloss Cecilienhof in Potsdam, Germany, which derives its fame from the Potsdam Conference of the World War II allies Winston Churchill, Harry Truman and Joseph Stalin in 1945.[17] The Taj Mahal Palace & Tower in Mumbai is one of India's most famous and historic hotels because of its association with the Indian independence movement. Some establishments have given name to a particular meal or beverage, as is the case with the Waldorf Astoria in New York City, United States where the Waldorf Salad was first created or the Hotel Sacher in Vienna, Austria, home of the Sachertorte. Others have achieved fame by association with dishes or cocktails created on their premises, such as the Hotel de Paris where the crêpe Suzette was invented or the Raffles Hotel in Singapore, where the Singapore Sling cocktail was devised.[18]

Hôtel Ritz Paris in France

A number of hotels have entered the public consciousness through popular culture, such as the Ritz Hotel in London, through its association with Irving Berlin's song, "Puttin' on the Ritz". The Algonquin Hotel in New York City is famed as the meeting place of the literary group, the Algonquin Round Table, and Hotel Chelsea, also in New York City, has been the subject of a number of songs and the scene of the stabbing of Nancy Spungen (allegedly by her boyfriend Sid Vicious).

Resort hotels

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The Mandarin Oriental, Miami Oasis Beach Club
Wynn Palace, Macau
Shanghai Disneyland Hotel, China

Some hotels are built specifically as a destination in itself to create a captive trade as a resort, example at casinos, amusement parks and seaside resorts. Though hotels have always been built in popular destinations, the defining characteristic of a resort hotel is that it exists purely to serve another attraction, the two having the same owners.

On the Las Vegas Strip there is a tradition of one-upmanship with luxurious and extravagant hotels in a concentrated area. This trend now has extended to other resorts worldwide, but the concentration in Las Vegas is still the world's highest: nineteen of the world's twenty-five largest hotels by room count are on the Strip, with a total of over 67,000 rooms.[19]

Bunker hotels

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The Null Stern Hotel in Teufen, Appenzellerland, Switzerland, and the Concrete Mushrooms in Albania[20] are former nuclear bunkers transformed into hotels.

Cave hotels

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The Cuevas Pedro Antonio de Alarcón (named after the author) in Guadix, Spain, as well as several hotels in Cappadocia, Turkey, are notable for being built into natural cave formations, some with rooms underground. The Desert Cave Hotel in Coober Pedy, South Australia, is built into the remains of an opal mine.

Cliff hotels

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On top of the cliff, the Riosol Hotel in Mogán

Located on the coast but high above sea level, these hotels offer unobstructed panoramic views and a great sense of privacy without the feeling of total isolation. Some examples from around the globe are the Riosol Hotel in Gran Canaria, Caruso Belvedere Hotel in Amalfi Coast (Italy), Aman Resorts Amankila in Bali, Birkenhead House in Hermanus (South Africa), The Caves in Jamaica and Caesar Augustus in Capri.[21]

Capsule hotels

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Interior of a capsule hotel in Osaka, Japan

Capsule hotels are a type of economical hotel first introduced in Japan, where people sleep in stacks of rectangular containers. In the sleeping capsules, beside the bed, the customer can watch TV, put their valuables in the mini safes, and the customers also can use the wireless internet.[22]

Day room hotels

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Some hotels fill daytime occupancy with day rooms, for example, Rodeway Inn and Suites near Port Everglades in Fort Lauderdale, Florida.[23] Day rooms are booked in a block of hours typically between 8 am and 5 pm,[24] before the typical night shift. These are similar to transit hotels in that they appeal to travelers, however, unlike transit hotels, they do not eliminate the need to go through Customs.

An emerging trend is hotels offering day passes for guests to use the facilities for the day, without having to pay a full fee for an overnight stay, such as a ResortPass.[25][26]

Garden hotels

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Garden hotels often originate as famous buildings with gardens before becoming luxury hotels. In Britain, the conversion into a hotel commonly results from the need to improve the finances of estates.[27] These include Gravetye Manor, the home of garden designer William Robinson, and Cliveden, designed by Charles Barry with a rose garden by Geoffrey Jellicoe. Other prominent examples include the Abbasi Hotel in Iran, and Hostal dos Reis Católicos in Spain.

Ice, snow and igloo hotels

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Ice Hotel in Jukkasjärvi, Sweden

The Ice Hotel in Jukkasjärvi, Sweden, was the first ice hotel in the world; first built in 1990, it is built each winter and melts every spring. The Hotel de Glace in Duschenay, Canada, opened in 2001 and it is North America's only ice hotel. It is redesigned and rebuilt in its entirety every year. Ice hotels can also be included within larger ice complexes; for example, the Mammut Snow Hotel in Finland is located within the walls of the Kemi snow castle; and the Lainio Snow Hotel is part of a snow village near Ylläs, Finland. There is an arctic snowhotel in Rovaniemi in Lapland, Finland, along with glass igloos.[28] The first glass igloos were built in 1999 in Finland, they became the Kakslauttanen Arctic Resort with 65 buildings, 53 small ones for two people and 12 large ones for four people. Glass igloos, with their roof made of thermal glass, allow guests to admire auroras comfortably from their beds.[29]

Love hotels

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A love hotel (also 'love motel', especially in Taiwan) is a type of short-stay hotel found around the world, operated primarily for the purpose of allowing guests privacy for sexual activities, typically for one to three hours, but with overnight as an option. Styles of premises vary from extremely low-end to extravagantly appointed. In Japan, love hotels have a history of over 400 years.[30]

Portable modular hotels

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In 2021 a New York-based company introduced new modular and movable hotel rooms which allow landowners and hospitality groups to create and easily scale hotel accommodations. The portable units can be built in three to five months and can be stacked to create multi-floor units.[31]

Referral hotel

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A referral hotel is a hotel chain that offers branding to independently operated hotels; the chain itself is founded by or owned by the member hotels as a group. Many former referral chains have been converted to franchises; the largest surviving member-owned chain is Best Western.

Railway hotels

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The first recorded purpose-built railway hotel was the Great Western Hotel, which opened adjacent to Reading railway station in 1844, shortly after the Great Western Railway opened its line from London. The building still exists, and although it has been used for other purposes over the years, it is now again a hotel and a member of the Malmaison hotel chain.[32][33][34]

Frequently, expanding railway companies built grand hotels at their termini, such as the Midland Hotel, Manchester next to the former Manchester Central Station, and in London the ones above St Pancras railway station and Charing Cross railway station. London also has the Chiltern Court Hotel above Baker Street tube station, there are also Canada's grand railway hotels. They are or were mostly, but not exclusively, used by those traveling by rail.

Straw bale hotels

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The Maya Guesthouse in Nax Mont-Noble in the Swiss Alps, is the first hotel in Europe built entirely with straw bales. Due to the insulation values of the walls it needs no conventional heating or air conditioning system, although the Maya Guesthouse is built at an altitude of 1,300 metres (4,300 ft) in the Alps.[35]

Transit hotels

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Transit hotels are short stay hotels typically used at international airports where passengers can stay while waiting to change airplanes. The hotels are typically on the airside and do not require a visa for a stay or re-admission through security checkpoints.

Treehouse hotels

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Some hotels are built with living trees as structural elements, for example the Treehotel near Piteå, Sweden, the Costa Rica Tree House near the Jairo Mora Sandoval Gandoca-Manzanillo Mixed Wildlife Refuge, Costa Rica; the Treetops Hotel in Aberdare National Park, Kenya; the Ariau Towers near Manaus, Brazil, on the Rio Negro in the Amazon; and Bayram's Tree Houses in Olympos, Turkey.

Underwater hotels

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Ithaa, the first undersea restaurant at the Conrad Maldives Rangali Island resort

Some hotels have accommodation underwater, such as Utter Inn in Lake Mälaren, Sweden. Hydropolis, project in Dubai, would have had suites on the bottom of the Persian Gulf, and Jules' Undersea Lodge in Key Largo, Florida, requires scuba diving to access its rooms.

Overwater hotels

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An overwater bungalow on the island resort in the Maldives

A resort island is an island or an archipelago that contains resorts, hotels, overwater bungalows, restaurants, tourist attractions and its amenities. Maldives has the most overwater bungalows resorts.

Yurt hotels

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Yurts are circular, self-supporting structures with long rafters coalescing toward a central dome. During the day, the dome allows sunlight to illuminate the entire yurt interior, while moonlight and starlight shine through the dome at night.[36]

Other specialty hotels

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Burj Al Arab stands on an artificial island from Jumeirah Beach and is connected to the mainland by a private curving bridge
Lobby on 103rd floor at The Ritz-Carlton, Hong Kong

Records

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Largest

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In 2006, Guinness World Records listed the First World Hotel in Genting Highlands, Malaysia, as the world's largest hotel with a total of 6,118 rooms (and which has now expanded to 7,351 rooms).[40] The Izmailovo Hotel in Moscow has the most beds, with 7,500, followed by The Venetian and The Palazzo complex in Las Vegas (7,117 rooms) and MGM Grand Las Vegas complex (6,852 rooms).[41][self-published source?]

Oldest

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According to the Guinness Book of World Records, the oldest hotel in operation is the Nisiyama Onsen Keiunkan in Yamanashi, Japan. The hotel, first opened in AD 707, has been operated by the same family for forty-six generations. The title was held until 2011 by the Hoshi Ryokan, in the Awazu Onsen area of Komatsu, Japan, which opened in the year 718, as the history of the Nisiyama Onsen Keiunkan was virtually unknown.[42]

Highest

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The Rosewood Guangzhou located on the top floors of the 108-story Guangzhou CTF Finance Centre in Tianhe District, Guangzhou, China. Soaring to 530-meters at its highest point, earns the singular status as the world's highest hotel.[43][44]

Most expensive purchase

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In October 2014, the Anbang Insurance Group, based in China, purchased the Waldorf Astoria New York in Manhattan for US$1.95 billion, making it the world's most expensive hotel ever sold.[45]

The Waldorf Astoria New York, the most expensive hotel ever sold, cost US$1.95 billion in 2014.[45]

Long term residence

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A number of public figures have notably chosen to take up semi-permanent or permanent residence in hotels.

See also

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Industry and careers

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Human habitation types

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References

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Further reading

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[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
A hotel is a commercial establishment that provides paid short-term lodging to travelers and guests, typically including amenities such as meals, , and , distinguishing it from long-term residential rentals. Originating from ancient inns and hospices in civilizations like and , where basic shelter was offered along trade routes, the modern hotel emerged in the late 18th century with purpose-built structures like England's in (1768), evolving rapidly during the 19th-century industrial boom and railway expansion to accommodate growing transient populations. The global hotel industry, encompassing diverse classifications by star rating (from to luxury), location (urban, , or roadside), and services (full-service versus limited), generated approximately $1.5 trillion in in 2023 and supports millions of jobs, forming a of the broader and sector that contributed $10.9 trillion to world GDP in 2024 through direct, indirect, and induced effects. Defining characteristics include standardized room facilities for and convenience, revenue models reliant on rates and ancillary fees, and adaptations to innovations like online booking systems, though the sector faces challenges from economic cycles, pandemics, and regulatory pressures on labor and without compromising core operational realism.

Terminology

Etymology

The word "hotel" entered English in the 1640s, borrowed from French hôtel, which originally denoted a large , , or public building frequented by visitors, rather than a commercial establishment. This French term derived from Old French (or ostel), signifying a lodging or shelter for travelers, which in turn traced back to Medieval Latin , meaning an inn or for guests, rooted in the Latin hospes denoting both host and guest. Unlike earlier English terms such as "" or "," which typically referred to simpler roadside accommodations for basic and stabling, "hotel" implied a more substantial and often upscale structure akin to a private residence adapted for use, reflecting the French connotation of grandeur. The term's in English initially retained this of a grand house open to guests, evolving gradually to encompass purpose-built traveler accommodations by the late . In the , as commercial hotels proliferated and standardized in and America, the French hôtel exerted significant influence on international terminology, supplanting "" for many establishments and establishing "hotel" as the global standard for transient lodging facilities, often evoking associations with luxury and service derived from French traditions.

Modern Definitions and Classifications

A is a commercial establishment operated for profit that provides transient paid accommodations, typically including private guest rooms with en-suite facilities, to travelers and the general , distinguishing it from private homes, non-commercial guesthouses, or informal short-term by its regulated business structure and emphasis on standardized services such as reception, housekeeping, and often on-site dining. This core function is rooted in the , where operations are licensed under regulations mandating compliance with safety standards like codes, protocols, and guest liability protections, unlike unregulated private stays that lack such oversight. Legal definitions vary by but commonly require transient occupancy—short-term stays without tenancy rights—and minimum operational features; for instance, California's defines a as any transient establishment excluding long-term apartments, emphasizing access and service provision over residential use. International classification systems primarily rely on star ratings, a 1-to-5 scale administered by national tourism authorities, private inspectors, or bodies like the Hotelstars Union in , evaluating hotels based on objective criteria such as room size (e.g., minimum 10-14 square meters for 1-star, expanding to 24+ for 5-star), amenities (from basic beds in lower tiers to spas, , and 24-hour in higher ones), staff qualifications, and protocols. One-star hotels offer essential lodging with limited services like daily cleaning but no on-site food, while five-star properties mandate luxury elements including multilingual staff ratios of at least 1:15 and facilities like or business centers, with ratings verified through unannounced inspections to ensure consistency. In the United States, the (AAA) employs a parallel diamond system (1-5 diamonds) focusing on similar metrics, though not identical to stars, to guide consumer choices amid varying national standards. The United Nations World Tourism Organization (UNWTO) advocates for harmonized classification frameworks to rank accommodations by facilities and service quality, promoting terms like "grading" or "star rating" interchangeably for global comparability, though implementation remains decentralized due to local regulations. Legal thresholds further delineate hotels from adjacent lodging; many U.S. municipalities require at least 5-10 lettable rooms for hotel licensing to differentiate from bed-and-breakfasts or motels, alongside mandates for public lobbies and registration logs, ensuring commercial scale and public safety absent in smaller or roadside alternatives. These distinctions underscore hotels' role as regulated service providers, not mere rental spaces, with non-compliance risking reclassification or penalties under occupancy laws.

History

Ancient and Medieval Precursors

In , rudimentary inns known as pandocheia provided basic lodging for travelers, merchants, and performers, emerging alongside growing commerce and religious festivals as early as the 5th century BCE in cities like . These establishments offered simple rooms, food, and stabling, often operated by private owners who catered to transient populations rather than locals. The Romans systematized traveler accommodations through mansiones, state-sponsored inns spaced approximately 25-30 miles apart along their 50,000-mile road network, primarily serving imperial couriers, military personnel, and commercial traders from the BCE onward. Unlike Greek counterparts, mansiones featured standardized layouts with dormitories, dining areas, and , funded by the government to facilitate efficient communication and economic exchange across the ; private tabernae supplemented these for civilians, though they were often rudimentary and prone to overcrowding. In , caravanserais functioned as fortified roadside inns along ancient trade routes such as the , dating back to at least the (6th-4th centuries BCE) and proliferating through medieval Islamic caliphates, where they provided enclosed courtyards for caravans, water, fodder, and protection from bandits for merchants transporting goods like and spices. These structures, typically rectangular with high walls and gates, emphasized security and commerce over luxury, hosting up to hundreds of travelers nightly and serving as hubs for cultural and economic interactions. Medieval European inns evolved from Roman precedents amid expanding trade fairs, pilgrimages, and feudal travel from the CE, offering shared beds, ale, and meals in timber-framed buildings clustered near roads and markets; by the 12th century, over 1,000 inns operated in alone, generating significant revenue through charges for (often 1-2 pence per night) and stabling horses. Innkeepers, frequently affluent members, prioritized profit-driven for pilgrims to sites like and merchants along routes to fairs in Champagne, though conditions were basic—fleas, theft, and fire risks were common due to thatched roofs and open hearths. In , ryokan originated during the (710-794 CE) as government-established rest houses (honjin and waki-honjin) for officials, monks, and emissaries along post roads, evolving into private family-run inns by the (794-1185 CE) that provided bedding, communal baths, and meals tied to hot springs. This shift reflected demands from imperial travel and trade, with establishments like , founded in 705 CE, exemplifying continuity in structured, service-oriented lodging. These precursors transitioned from opportunistic shelters to purpose-built facilities as long-distance and pilgrimage intensified, laying groundwork for commercial by institutionalizing payment for bed, board, and security rather than relying on charity or kinship networks.

Emergence of the Modern Hotel (17th-19th Centuries)

The transition to purpose-built commercial hotels began in the late amid urban expansion and increasing , evolving from inns that often doubled as taverns or stables into dedicated facilities oriented toward profit from transient guests. This shift reflected capitalist incentives, as proprietors invested in specialized to accommodate growing numbers of merchants and early , prioritizing revenue from standardized services over communal or subsistence-based . In the United States, the Tremont House in , opened on October 16, , exemplified the emergence of the modern luxury hotel, featuring innovations such as individual lockable rooms, indoor plumbing with running water supplied via rooftop tanks, private bathtubs, call bells connecting to a central , and complimentary toiletries. These amenities, absent in prior inns, targeted affluent businessmen and travelers spurred by industrial growth, enabling operators to charge premium rates—$2 per night, double typical inn costs—while enhancing operational efficiency through a formal reception and uniformed staff. The hotel's success demonstrated how private enterprise responded to demand from an expanding , unburdened by regulatory or welfare considerations. Railway development in the further catalyzed hotel standardization across and America, as networks linked cities and generated surges in passenger volume requiring proximate, reliable accommodations. In Britain, the earliest railway hotels appeared from 1839, with operators like the commissioning purpose-built properties adjacent to stations to monopolize traveler spending and ensure service consistency. By mid-century, over 30 such hotels dotted provincial towns, featuring uniform designs with en-suite facilities and dining halls tailored to hurried commuters, driven by profit motives amid Britain's rail boom that reduced travel times and democratized mobility for commercial purposes. This infrastructure boom, fueled by private investment rather than state altruism, solidified hotels as integral to economic connectivity, with urban centers like and New York witnessing clusters of grand establishments to exploit and business influxes.

20th-Century Expansion and Standardization

Following , the U.S. hotel industry experienced initial expansion driven by returning prosperity and increased mobility, exemplified by Conrad Hilton's entry into the sector. In 1919, Hilton acquired the in , capitalizing on demand, and by managed five properties through targeted purchases in the state. This period also saw the emergence of tailored to automobile travel, with early tourist courts appearing in the amid rising car ownership; the designation of in 1926 further spurred roadside lodging along cross-country paths, fostering a proliferation of independent motor hotels by the 1930s. The severely contracted the industry, with occupancy rates plummeting from 71% in 1928 to 50% by 1932, prompting widespread closures and bankruptcies that eliminated weaker operators and created toward financially robust entities. Recovery gained traction in the late 1930s, but redirected many hotels to military use, housing troops and officials, which strained civilian operations yet preserved infrastructure for postwar rebound; demand surged after 1945, with revenues rising amid , though offset partially by . Mid-century professionalization accelerated through chain models emphasizing standardization for operational efficiency and scalability. Kemmons Wilson founded Holiday Inn in 1952 in Memphis, Tennessee, introducing uniform features like air-conditioned rooms, televisions, and swimming pools to address inconsistent roadside accommodations, with the first franchise opening in 1954 to enable rapid proliferation via independent operators adhering to brand protocols. Concurrently, Hilton pursued aggressive acquisitions, culminating in the 1954 purchase of the 17-property Statler chain for $111 million, enhancing national presence. Franchising, formalized in hotels around this era, allowed chains to expand without full capital outlay, contributing to their dominance; by the 1960s, substantial chain growth occurred, accounting for 35% of industry revenues by 1982.

Post-2000 Developments and Globalization

The proliferation of online travel agencies (OTAs) in the early fundamentally altered hotel distribution, shifting bookings from traditional channels to digital platforms. By the mid-, OTAs like , which began aggregating hotel inventory in 1996 but scaled significantly after acquiring partnerships and expanding globally, captured a growing share of reservations, contributing to a 70% decline in U.S. travel agent employment between 2000 and 2021 as consumers increasingly self-booked. This digital shift enabled hotels to reach international markets more efficiently, with the global online travel booking market reaching $519.1 billion by 2021. Simultaneously, major hotel chains pursued aggressive globalization, targeting emerging markets in Asia, Africa, and Latin America to capitalize on rising middle-class travel demand. Marriott International and Hilton Worldwide, for instance, announced large-scale expansions in Africa by 2025, with Hilton aiming for hundreds of new properties in countries like Egypt, Nigeria, and South Africa, driven by improved air connectivity and economic growth. In Asia, chains like Marriott added thousands of rooms in India and China through strategic alliances and conversions, reflecting a broader trend where branded hotels outperformed independents in attracting foreign guests due to standardized quality and loyalty programs. The disrupted this trajectory, causing hotel to plummet over 50% in many regions from pre-pandemic levels around 65%. In the U.S., fell to 25-30% in March 2020 and 10-15% in April, with global dropping sharply—U.S. figures reached just $54 amid 34% declines—due to restrictions and collapse. Independent hotels faced steeper supply contractions (down 0.4% through mid-2023), while chains maintained growth through diversified portfolios, underscoring the resilience of branded networks in free-market adaptations to exogenous shocks. By 2024-2025, the industry rebounded, with U.S. RevPAR rising 4.4% year-over-year in December 2024—the strongest gain since early 2023—approaching pre-pandemic benchmarks through pent-up leisure and business travel. Chains led this recovery, leveraging global brand equity for faster occupancy gains in emerging markets, while independents lagged in revenue premiums, as branded properties consistently generated higher RevPAR via superior distribution and pricing power. This period highlighted causal factors like regulatory reopenings and supply discipline as key to stabilization, rather than subsidies alone.

Types of Hotels

Full-Service and Luxury Hotels

Full-service hotels provide a broad array of on-site amenities and services beyond basic lodging, including multiple restaurants, bars, , assistance, swimming pools, fitness centers, and often conference facilities or spas. These properties cater to guests seeking convenience and variety, typically featuring dedicated food and beverage operations that serve both in-house visitors and external groups. In contrast to limited-service hotels, which prioritize cost efficiency with minimal extras, full-service establishments emphasize comprehensive experiences, often at higher price points aligned with their operational scope. Luxury hotels represent the upper echelon of full-service properties, distinguished by upscale accommodations, exceptional personalized service, fine dining options, and premium facilities such as high-end spas and bespoke concierge services. Brands like The Ritz-Carlton, Four Seasons, and Mandarin Oriental set industry benchmarks through meticulous attention to detail, including customized guest experiences and superior room quality, which foster high levels of satisfaction as evidenced by empirical studies on service personalization and immersion. The global luxury hotel market, valued at approximately $104 billion in 2024, accounts for a modest share of total hotel rooms—estimated at 10-15%—yet generates disproportionately high revenue per available room (), with upper-upscale and luxury segments outpacing economy tiers by margins of 4-7% in recent growth rates. Despite these strengths, luxury hotels face elevated operational costs, averaging 44% of total revenue for operated departments compared to 37% industry-wide, driven by labor-intensive services and premium sourcing. This structure renders the segment particularly susceptible to economic downturns, as discretionary high-end travel declines sharply during recessions, amplifying vulnerability relative to budget-oriented competitors. Critics highlight inherent in pricing models that exclude broader demographics, alongside sustainability challenges from resource-heavy amenities, though proponents argue the depth of service justifies premiums by delivering measurable enhancements in guest loyalty and perceived value.

Midscale and Select-Service Hotels

Midscale and select-service hotels occupy a core segment of the lodging industry, offering standardized rooms equipped with modern essentials such as wireless internet, in-room coffee makers, and flat-screen televisions, alongside limited amenities including complimentary continental breakfast, on-site fitness centers, and sometimes small meeting spaces or vending areas, but without full restaurants, services, or extensive recreational facilities. These properties emphasize operational simplicity and brand consistency to deliver value-driven stays, appealing to transient guests who prioritize functionality and affordability over luxury. Leading brands such as (IHG Hotels & Resorts), Hampton Inn (Hilton), and exemplify this category, operating primarily through franchise models that enable scalable expansion while maintaining uniform service standards across urban, suburban, and highway-adjacent locations. Select-service hotels have shown empirical resilience, with U.S. supply in this sector nearly doubling between 1988 and 2023 and comprising a dominant share of development pipelines into 2024, driven by their ability to achieve levels 14% above 2019 benchmarks amid post-pandemic recovery. Lower construction costs—median development expenses for midscale properties falling below those of upscale or luxury segments—and reduced staffing needs contribute to higher gross operating profit margins, often outperforming full-service hotels during economic volatility by sustaining occupancy stability through broad market appeal. This segment holds particular sway in , where select-service brands account for roughly 42% of U.S. supply in key models, attracting corporate guests via efficient processes, proximity to transportation hubs, and cost controls that support predictable pricing without sacrificing basic reliability. However, standardized protocols and minimalist designs can foster perceptions of impersonality, with guests occasionally noting a lack of individualized or "factory-like" service in reviews of midscale properties.

Economy and Budget Hotels

Economy and budget hotels operate on a no-frills model, prioritizing affordability through simplified amenities and operational efficiency to serve price-sensitive guests. These properties typically feature basic guest rooms with essential furnishings, such as beds, private bathrooms, and limited self-service facilities like vending machines or coin laundry, eschewing luxuries such as services, restaurants, or extensive housekeeping. Room rates are kept low, often under $100 per night in many markets, by minimizing staffing and maintenance costs while focusing on high turnover and standardized designs that facilitate quick cleaning and repairs. The chain, established in 1962 by construction entrepreneurs William Becker and Paul Greene in , pioneered this approach by offering clean, consistent accommodations for road travelers at a fixed low price of $6 per night initially, emphasizing roadside locations and basic reliability over extravagance. These hotels target transient workers, budget-conscious leisure travelers, and entry-level business guests who prioritize cost over comfort, enabling broad in underserved segments. By 2024, the global budget hotels sector had grown to a of $284.83 billion, driven by for economical stays amid rising costs. Profitability relies on high-volume —often exceeding 70% in peak periods—to offset slim per-room margins, with properties achieving gross operating profit (GOP) margins of approximately 41% in 2024 through lean operations that limit variable expenses like food and beverage services. This strategy contrasts with higher-tier hotels by forgoing revenue from ancillary services, instead leveraging tied to local and supply to maintain steady cash flows. Critics highlight quality shortcomings in some budget properties, including unclean conditions, noise disturbances, pest infestations, and elevated safety risks such as crime hotspots in poorly managed motels, particularly older independent operations lacking robust security features. Branded chains counter these issues with enforced standards for and basic safeguards like keycard access and , delivering verifiable value through accessible lodging that supports for low-wage transients without the overhead of upscale alternatives. This model sustains viability by aligning costs causally with guest willingness to pay, fostering resilience in fluctuating markets where premium segments contract.

Extended-Stay and Residential Hotels

Extended-stay hotels cater to guests requiring accommodations for periods typically exceeding five nights, often spanning weeks or months, distinguishing them from transient short-stay properties by emphasizing self-sufficiency and residential-like features. These establishments provide suite-style rooms with full or partial kitchens equipped with refrigerators, stovetops, microwaves, and dishwashers, alongside on-site facilities and sometimes grocery delivery services to minimize reliance on external dining. Unlike , is less frequent—often weekly—to accommodate longer occupancies, and rates are structured with discounts for extended bookings, such as weekly or monthly plans. The model originated in the United States with the launch of Residence Inn by Marriott in 1975, founded by Jack DeBoer as the first all-suite hotel chain targeting prolonged stays with home-like comforts. Subsequent brands like Staybridge Suites and WoodSpring Suites expanded the segment, incorporating residential influences such as flexible workspaces and enhanced privacy features in recent years. Residential hotels, sometimes overlapping with extended-stay formats, function as serviced apartments under hotel management, offering indefinite tenancies while providing daily services like and maintenance. Historically, extended-stay concepts evolved from single-room occupancy (SRO) units prevalent in early 20th-century urban areas, which offered affordable, basic long-term housing for transients and low-income workers but lacked modern amenities. SROs peaked in U.S. cities like New York around 1950 with approximately 200,000 units, serving as low-cost options amid post-Depression housing shortages. Their decline accelerated from the 1960s due to zoning restrictions, fire codes, and urban renewal policies that demolished many structures, reducing supply and shifting demand toward upscale extended-stay alternatives by the late 20th century. Primary users include corporate relocators, temporary workers on assignments, and families in transition, with companies selecting these for employees due to bundled utilities, furnishings, and no long-term lease commitments, proving cost-effective for stays of 30 days or more compared to traditional apartments. The segment has grown resiliently, capturing market share from short-stay hotels through 2025 by appealing to remote workers needing dedicated workspaces and high-speed internet. Advantages encompass stability without relocation hassles, reduced meal expenses via in-suite cooking, and access to hotel amenities like pools or gyms, fostering productivity for business travelers. Drawbacks include potential social isolation from limited communal interaction, escalating per-diem costs beyond apartment rents for very long tenures, and elevated operational risks such as higher incidences of unauthorized activities in some properties. Regulatory distinctions arise for prolonged occupancies, where guests paying monthly rates may acquire tenant protections under laws like the U.S. Fair Housing Act, entitling them to eviction safeguards akin to renters rather than at-will hotel guests. This shift imposes compliance burdens on operators, including anti-discrimination policies and habitability standards, potentially complicating evictions or modifications compared to short-term stays. In jurisdictions with strict hotel licensing, extended-stay properties must balance transient classifications with residential realities to avoid reclassification as multifamily housing.

Operations and Management

Organizational Structure and Staffing

Hotels typically employ a hierarchical , with the general manager serving as the top executive responsible for overall strategy, profitability, and compliance with brand standards where applicable. Beneath the general manager are assistant managers and department heads overseeing functional areas, including operations (e.g., reservations, , and guest services), (room cleaning and linen management), and beverage (restaurants, bars, and ), sales and marketing, finance and accounting, , and or . Frontline staff, such as receptionists, housekeepers, servers, and maintenance technicians, report to these department supervisors, forming a that ensures specialized oversight while maintaining operational coordination. Ownership models influence management structures: in corporate-owned hotels, operations are directed by a centralized from the parent company, enforcing uniform policies across for consistency in service and branding. Franchise models, prevalent in midscale and select-service segments, grant independent owners operational under the franchisor's guidelines, including staffing protocols and training requirements, though the owner retains direct control over hiring and daily decisions to adapt to local conditions. This distinction allows franchises greater flexibility in labor management but subjects them to brand audits, whereas owned properties benefit from corporate resources like shared HR systems at the cost of reduced site-specific adaptability. Empirical staffing levels in U.S. hotels supported approximately 1.5 million direct jobs in , concentrated in roles from executives to entry-level positions, with typical employee-to-room ratios under 1:1 in developed markets to optimize efficiency amid varying . Post-2020 labor shortages affected 65% of surveyed properties, stemming from pandemic-induced layoffs where many workers did not return due to burnout, relocation, or shifts to higher-paying sectors, compounded by structural issues like inflexible scheduling and below-market wages that hindered . These shortages elevated reliance on part-time or agency staff, straining service consistency. The industry grapples with annual turnover rates of 70-80%, driven by demanding physical work, irregular hours, and limited advancement paths, which impose costs estimated at thousands per hire but also enable rapid replacement of underperformers for operational agility. High turnover critiques highlight degraded guest experiences from inexperienced staff and elevated error rates, yet it correlates with lean models that have sustained profitability during recoveries by curbing fixed labor expenses. Efforts to mitigate include targeted retention via competitive pay adjustments and , though persistent rates underscore causal links to pre-existing wage structures unresponsive to market signals.

Revenue Management and Pricing Strategies

Revenue management in hotels encompasses systematic approaches to forecasting demand, allocating inventory, and setting prices to maximize total revenue rather than merely occupancy. Originating from airline yield management practices in the 1980s, hotel adaptations focus on segmenting demand by customer willingness to pay, using historical data, competitor rates, and events to optimize room allocation. Key metrics include Revenue Per Available Room (RevPAR), calculated as average daily rate (ADR) multiplied by occupancy rate or total room revenue divided by available rooms, which prioritizes revenue efficiency over full utilization. Hotels employing these strategies often achieve higher RevPAR by restricting low-rate bookings during peak periods to reserve capacity for higher-paying segments. Dynamic pricing algorithms form the core of modern strategies, adjusting rates in real-time based on supply-demand imbalances, with prices rising during high-demand events like conventions or holidays to reflect . Empirical studies demonstrate that greater price variability correlates with gains through intertemporal , where early bookers pay less and late high-value customers pay more, yielding up to 5-10% uplifts in tested scenarios. For instance, Tanzanian hotels implementing dynamic models reported 4-6% improvements via data-driven rate adjustments. complements this by monitoring occupancy forecasts to avoid "spillage" (lost high-rate ) or "spoilage" (unsold ), often via overbooking calibrated to no-show rates, ensuring rooms generate maximum yield without excessive walk-ins. Post-2024 advancements in AI have amplified these techniques by processing vast datasets for precise demand prediction and personalized , outperforming traditional models in volatile markets. AI tools analyze patterns in booking lead times, channel mixes, and external factors like weather or economic indicators, enabling proactive rate optimizations that boost by 5-15% in adopting properties through enhanced forecasting accuracy. Case studies indicate AI-driven systems increased from 60% to 74% in under two months for select hotels by identifying untapped demand segments. Critiques of surge —rapid rate hikes during peaks—often label it exploitative, citing reputational risks and potential customer alienation from perceived unfairness. However, from a market realism perspective, such adjustments causally align prices with resource scarcity, efficiently fixed to highest-value users and preventing inefficient low-occupancy outcomes, as evidenced by maximization models where fixed pricing underperforms in heterogeneous demand. Regulatory threats to curb surges overlook this, as empirical variability benefits outweigh diluted yields from capped rates.

Guest Services and Operational Efficiency

Guest services in hotels encompass front-line interactions designed to facilitate seamless guest experiences, with check-in processes typically commencing between 2:00 p.m. and 4:00 p.m. to verify reservations, issue keys, and orient arrivals, while check-out occurs by 11:00 a.m. or noon to enable room preparation for new occupants. These standardized timings prioritize operational turnover, as delays in check-out directly constrain housekeeping capacity and subsequent revenue potential. Concierge assistance and room service further support guest needs, such as local recommendations or in-room dining, but are calibrated to minimize staff idle time through integrated scheduling systems. Housekeeping operations maintain hygiene and readiness, adhering to checklists that include bed-making, bathroom sanitization, and amenity replenishment, often completed within 20-30 minutes per occupied room to uphold turnover efficiency. Standards emphasize empirical verification, such as ultraviolet inspections for cleanliness, to mitigate health risks and guest complaints, which correlate with review scores and repeat visits. These protocols balance thoroughness with speed, as prolonged cleaning intervals reduce available room inventory and compress daily revenue cycles. Operational efficiency is quantified through metrics like average length of stay (ALOS), calculated as total nights divided by bookings, which averaged 2.5-3 nights globally in recent industry analyses, influencing allocation and supply costs. Higher ALOS enhances predictability in resource deployment, reducing per-night overheads, while indices—derived from post-stay surveys—track satisfaction to inform adjustments without excess expenditure. Hotels pursue by aligning gestures with causal drivers, such as loyalty incentives that extend stays, rather than undifferentiated , as empirical models show direct links between targeted service enhancements and net profitability. Cost controls, including automated alerts for room status, prevent over-servicing while sustaining guest perceptions of attentiveness.

Economic and Industry Impact

Employment, Wages, and Job Creation

The hotel industry directly employs millions worldwide, contributing significantly to labor markets through both direct positions and induced economic activity. In the United States, hotels employed more than 2.1 million workers in 2024, marking a recovery toward pre-pandemic levels. This sector paid a record $123.4 billion in wages, salaries, and compensation that year, up 4% from 2023 and 20% above 2019 figures, reflecting efforts to attract and retain staff amid competitive pressures. Additionally, U.S. hotels generated approximately $83.4 billion in total tax revenue in 2024, including over $26 billion in lodging-specific taxes and $29 billion in income taxes, underscoring their fiscal contributions. Globally, the hospitality sector, with hotels as a core component, supported over 330 million jobs in 2024, though precise hotel-only figures are embedded within broader and estimates of 357 million total roles. The industry's job creation extends beyond direct via multiplier effects, where initial spending and operations stimulate secondary activity; studies indicate hospitality's overall multiplier reaches 2.293, meaning each unit of direct output generates additional economic activity, with employment multipliers typically yielding 1.5 to 2 indirect jobs per direct hotel position in supply chains, transportation, and local services. Despite growth, U.S. hotels faced persistent labor shortages in , with 65% reporting understaffing and strategies like pay hikes adopted by 47% proving insufficient to fully resolve gaps. These shortages stem partly from post-pandemic workforce exits and demographic shifts, but empirical analyses link regulatory factors, including increases, to heightened operational costs and reduced hiring in labor-intensive, low-margin segments of the industry. Such wage floors can elevate survival risks for hotels by compressing profitability without proportionally expanding the available labor pool, particularly where compliance burdens compound turnover in entry-level roles.

Contributions to Local and National Economies

The hotel industry plays a pivotal role in national economies by facilitating , which generates substantial visitor expenditures that ripple through supply chains and local businesses, as quantified by input-output models such as the Regional Input-Output Modeling System (RIMS II). These models capture direct effects from hotel operations and guest spending, indirect effects via purchases from suppliers (e.g., , , and ), and induced effects from employee re-spending, yielding output multipliers typically ranging from 1.5 to 2.5 in tourism-dependent regions. For instance, in urban areas like , visitor hotel expenditures have been shown to amplify local economic output by factors derived from such models, supporting broader GDP growth without assuming static leakage assumptions that undervalue inter-industry linkages. Globally, the sector, with hotels as a core component, reached a of $4.9 trillion in , contributing to the and industry's record $11.1 trillion addition to world GDP—equivalent to 10% of global output—through direct accommodation revenues and ancillary spending on dining, transport, and retail. In the United States, the hotel industry alone supported $894.1 billion in GDP in , encompassing $1.7 trillion in total sales across direct hotel activities and induced economic activity, driven by 9.2 million jobs and $246.3 billion in tax revenues. This impact stems from hotels' capacity to attract non-local spending, which input-output analyses confirm circulates more efficiently than resident consumption, bolstering sectors like and via procurement demands. At the local level, hotel developments catalyze urban revitalization by spurring net business and job creation, as evidenced by econometric studies of hotel openings that document increases in new establishments and outweighing any sectoral shifts. Claims of displacement—often amplified in media narratives of —are countered by data showing overall labor market expansion, with hotel-driven inflows generating sustained demand that absorbs workers into higher-productivity roles rather than merely relocating existing activity. For example, in declining urban cores, hotels have been linked to positive net effects through multiplier-driven spillovers, challenging zero-sum interpretations by highlighting causal pathways from influxes to upgrades and ancillary service growth.

Challenges Including Costs and Market Fluctuations

Hotel operators have faced escalating operational costs, particularly in and labor, which have strained profitability amid persistent inflationary pressures. premiums for hotels increased by 19.5% in 2023 compared to the prior year, driven by factors including climate-related risks and reduced carrier capacity. By 2025, premiums rose 5-15% across the sector, with high-risk properties experiencing hikes up to 50%, complicating and forcing some operators to seek alternative coverage or self-insure. Labor costs compounded these pressures, rising 11.2% year-over-year in 2024, as wage demands outpaced revenue growth due to persistent staffing shortages and competitive hiring in a tight market. Food and beverage departments saw particularly acute increases of nearly 15% in labor expenses that year, reflecting higher staffing needs for event-driven demand. Revenue per available room (), a key metric, has exhibited volatility tied to economic cycles and shifts, underscoring the sector's sensitivity to external disruptions. U.S. hotel declined 1% year-over-year in August 2025, attributable to a 1.3% drop in despite modest average daily rate gains, as new supply growth exceeded recovery. Forecasts for the second half of 2025 project a further -0.6% contraction, yielding minimal full-year growth of 0.1%, influenced by softening and corporate caution amid economic uncertainty. This fluctuation stems causally from overbuilt supply in , where construction booms post-2022 recovery have diluted , compounded by traveler preferences shifting toward experiential alternatives like short-term rentals. Hotel investments are thus suited to investors comfortable with active management or third-party operators and brands—which charge fees typically comprising 15-18% of operating expenses—and tolerant of cyclical swings, performing strongly in economic booms but vulnerably in slowdowns. The cost to acquire a hotel varies widely based on size, location, type, condition, and brand. Prices are typically valued per room, ranging from $25,000–$50,000 per room for budget/economy hotels, $50,000–$150,000 for midscale, $150,000–$400,000 for upscale, and $400,000+ for luxury. Examples include small motels under $5 million and large luxury hotels exceeding $100 million, such as the Marriott Seattle Waterfront sold for $145 million (approximately $393,000 per key). Post-COVID recovery highlighted adaptive resilience but exposed underlying vulnerabilities to cost overruns and demand unpredictability. While U.S. hotel profits expanded in 2024 through rebound in segments, growth was curtailed by and labor escalation, with total expenses rising faster than revenues in many properties. Operators mitigated some impacts via and cost controls, yet sustained high expenses eroded margins, particularly for midscale and economy tiers reliant on volume over premium rates. Hotels overly dependent on tourism inflows face amplified risks from exogenous shocks, as evidenced by disproportionate downturns during events like pandemics or geopolitical tensions that suppress visitor volumes. Regions with tourism comprising over 15% of GDP, such as certain economies, exhibit heightened fragility, lacking buffers from diversified revenue streams like business conferences or local corporate stays. In contrast, properties integrating non-tourist segments—such as extended-stay options for relocations or hybrid event spaces—demonstrate greater stability, buffering dips through consistent midweek occupancy and reducing exposure to seasonal or global travel halts. This diversification underscores a causal link: monocultural reliance amplifies cyclical volatility, while balanced portfolios enable counter-cyclical adjustments.

Technological and Operational Innovations

Adoption of Digital and AI Technologies

Hotels have increasingly integrated digital technologies for , including mobile applications for contactless and keyless entry, which became standard post-2020 to reduce physical interactions. By 2024, over 70% of major hotel chains reported deploying such apps to streamline guest arrivals and personalize experiences through data-driven recommendations, such as tailored room amenities based on past stays. These systems leverage guest profiles to suggest upgrades or services, enhancing satisfaction while optimizing occupancy. Artificial intelligence has advanced revenue management through dynamic pricing algorithms that analyze real-time demand, competitor rates, and external factors like events or weather. For instance, tools like Atomize process vast datasets to adjust prices instantaneously, enabling hotels to capture 5-10% higher revenue per available room compared to manual methods in high-demand periods. Empirical studies from 2024 indicate AI-driven pricing yields average revenue uplifts of 7-15% for adopting properties, attributed to predictive analytics forecasting booking patterns with greater accuracy than traditional models. The global AI market in hospitality grew from $150 million in 2024 to a projected $240 million in 2025, reflecting widespread adoption for automation in forecasting and personalization. AI chatbots and virtual assistants further automate guest services, handling inquiries and reservations 24/7, which reduced front-desk staffing needs by up to 20% in pilot programs at chains like Marriott by late 2024. Generative AI chatbots have seen increasing adoption in the hotel industry for guest services, with significant growth in 2025 and 2026. In 2025, many hotels implemented GenAI-powered chatbots for personalized recommendations, booking assistance, and 24/7 support. By 2026, adoption accelerated, featuring advanced capabilities such as multimodal interactions and integration with property management systems, thereby enhancing guest experiences and operational efficiency. However, these integrations introduce cybersecurity imperatives, as hotels' reliance on interconnected IoT devices and guest data storage has made them targets for , with incidents rising 30% in 2024 amid vulnerabilities in legacy systems. Breaches, such as those exposing payment details, underscore risks from third-party vendors and unsecured , prompting 76% of operators to prioritize enhanced and regular audits in 2025 strategies. Despite gains in efficiency, incomplete data silos and algorithmic biases can lead to suboptimal decisions, necessitating human oversight for causal accuracy in pricing and service predictions.

Sustainability Initiatives and Empirical Critiques

Hotels have implemented energy-efficient technologies such as LED , variable-speed HVAC systems, and sensors, with industry reports indicating savings of 15-30% in participating properties through targeted retrofits. Water conservation measures, including low-flow fixtures and , alongside waste reduction via composting and single-use plastic bans, form core operational adjustments aimed at lowering resource intensity. adoption, such as on-site solar installations, has gained traction, though grid dependency limits scalability in urban settings. By 2025, a shift toward regenerative practices has emerged, emphasizing ecosystem restoration over mere mitigation, including enhancement through native landscaping, local sourcing to support , and partnerships for rehabilitation. These initiatives seek net-positive outcomes, such as exceeding operational emissions, but verifiable long-term data on their efficacy in hotels remains sparse, with most evidence anecdotal or from pilot projects rather than scaled empirical trials. Empirical critiques highlight widespread greenwashing, where promotional claims of sustainability exceed verifiable actions, eroding guest trust and as documented in employee and studies. Actual CO2 reductions from measures often fall short of assertions; for instance, while retrofits may cut per-room use by 20%, reliance on offsets—frequently criticized for lacking additionality and permanence—masks persistent on-site emissions without addressing sector-wide growth in room nights and volume. Rebound effects further diminish net gains, as cost savings from incentivize expanded operations or guest comfort enhancements, offsetting up to 50% of projected reductions in some modeled scenarios. Upfront costs for comprehensive initiatives, including system overhauls and certifications, range from $500-2,000 per room, with payback periods of 3-7 years for energy-focused upgrades but extending beyond a for regenerative elements like restoration due to uncertain revenue uplift. Marginal relative to these investments are compounded by institutional biases in reporting, where industry associations and academic studies—often funded by stakeholders—overemphasize positives while understating absolute emissions trajectories amid global travel rebound post-2020. True causal impact requires disaggregating per-unit efficiencies from total footprint expansion, revealing that hotel sector CO2 output has risen despite adoption rates, as efficiency gains are outpaced by demand.

Specialty and Niche Hotels

Location-Based Specialties

Location-based specialty hotels exploit distinctive geographical or environmental features to offer immersive guest experiences, such as submersion in aquatic settings, elevation amid canopies, or integration into subterranean rock formations. These establishments prioritize proximity to natural phenomena like coral reefs, ancient tree structures, or carved networks, often requiring custom to ensure habitability. However, they contend with elevated and upkeep expenses stemming from site-specific adaptations, including reinforcement against environmental stresses like hydrostatic pressure, seismic activity, or arboreal sway. Underwater hotels, such as the Muraka villa at Conrad Rangali Island opened in 2018, position accommodations below to provide panoramic views of , with the structure anchored to withstand depths of up to 16 feet. Similarly, Jules' Undersea Lodge in , operational since 1986 as a repurposed at 30 feet , demands rigorous sealing against leaks and differentials, necessitating hyperbaric certification for guests and frequent hull inspections to avert structural failure. Engineering feats include acrylic viewing panels rated for marine corrosion and protocols, yet safety critiques highlight risks of implosion or oxygen depletion during power outages, with incident reports underscoring the need for redundant life-support systems. Economic viability hinges on premium nightly rates exceeding $3,000 for the Muraka, attracting niche adventure seekers, though annual maintenance—encompassing submersible repairs and removal—can surpass standard hotel operating costs by 20-30% due to specialized diving teams. Cave hotels, prevalent in Cappadocia, Turkey, repurpose millennia-old volcanic formations into suites, as seen at Hezen Cave Hotel where 11 rooms were excavated and stabilized between 2020 and 2022 to achieve modern habitability. These sites leverage natural for energy efficiency but face challenges like rock bolting and mesh reinforcement to prevent s in terrains, where voids pose foundation hazards with collapse probabilities under 1% annually yet requiring geotechnical monitoring. Ventilation systems combat humidity-induced mold, while seismic addresses regional fault lines, elevating initial build costs 15-25% above surface equivalents due to excavation and . Safety concerns include poor air circulation leading to buildup and navigation risks in low-ceiling passages under 1.5 meters, prompting mandatory structural audits; despite these, occupancy rates in Cappadocia properties average 70% yearly, buoyed by , though high remediation expenses post-erosion events strain profitability. Treehouse hotels elevate guests into canopies for arboreal immersion, exemplified by TreeHouse Villas in Koh Yao Noi, Thailand, featuring 18 units suspended since 2021 with steel cabling anchored to hardwood trunks. demands wind-load calculations and flexible joints to mitigate sway from gusts up to 50 mph, alongside pest-resistant treatments for tropical exposure, resulting in per-unit costs 1.5-2 times those of ground-level builds. burdens include seasonal and UV degradation checks, inflating operational expenses amid variable tied to eco-tourism seasons. Viability is evidenced by the global treehouse market's projection from $332 million in 2024 to $473 million by 2030 at a 5.9% CAGR, driven by for , yet critiques note structural fatigue risks in storms, with premiums 10-20% higher due to fall hazards and evacuation complexities.

Design and Concept-Based Specialties

Design and concept-based hotel specialties emphasize innovative architectural and functional themes to provide differentiated guest experiences, often prioritizing efficiency, novelty, or privacy over conventional room layouts. These include , which originated in during the late 1970s amid urban density and long work hours, offering compact, pod-like sleeping units for transient travelers. The first such facility, Capsule Inn , opened on February 1, 1979, featuring 415 beds in a stacked arrangement to maximize space in commercial hubs like . This model reflects Japanese cultural emphasis on and resource optimization, appealing initially to salarymen needing affordable overnight stays without full hotel amenities. Capsule hotels differentiate through their , reducing footprint and costs—units typically measure about 2 meters long by 1 meter wide, equipped with basic , , and ventilation—but face scalability constraints beyond high-density urban settings. Their niche appeal limits broad adoption, as the confined space can induce and deter families or long-term guests, with global expansions often rebranded as "pod hotels" yet struggling against preferences for spacious accommodations. Environmentally, while space-efficient designs lower material use per guest, frequent cleaning and electronic systems contribute to energy demands in densely packed facilities. Ice hotels represent another concept-driven specialty, constructed annually from harvested ice and snow to create immersive, ephemeral environments with artistic suites sculpted by designers. Pioneered in Sweden's since the late , these structures embody transience, with rooms rebuilt each winter using local river ice for walls, furniture, and decor, often themed around natural motifs. The design fosters uniqueness through hand-carved elements, attracting adventure seekers, but operational challenges include seasonal limitation to cold months, requiring full reconstruction post-melt, which hampers scalability and elevates costs for labor and logistics. Environmental strains arise from resource extraction and transport, though proponents note reliance on renewable cold climates; longevity depends on annual , as static designs risk guest fatigue. Love hotels in exemplify privacy-focused concepts, featuring short-stay rooms with themed interiors—from gaudy facades to character motifs like —for discreet encounters amid cultural norms of limited home space. Emerging post-World War II, they evolved into anonymous havens with drive-in entries, vibration-free beds, and hourly rates, serving couples seeking seclusion without social scrutiny. Pros include market differentiation via elaborate, customizable designs that boost repeat visits in urban areas, but cons encompass reputational stigma, restricted exportability due to cultural specificity, and scalability issues in non-discreet societies. While resilient in Japan, some have modernized facades to attract broader dates, yet environmental impacts from frequent room turnover and themed disposables add operational inefficiencies. Overall, these specialties enable niche revenue through experiential appeal but reveal innovation limits: capsule and models thrive in efficiency-driven cultures yet falter in diverse markets, while concepts demand constant reinvention, underscoring trade-offs in scalability, guest comfort, and against conventional hotels' versatility. Empirical persistence, such as capsule hotels' expansion since and facilities' multi-decade operations via , highlights viability for targeted segments, though failures in mismatched locales underscore the risks of over-specialization.

Records and Milestones

Largest and Most Expansive Hotels

The Hotel in , , holds the record for the largest hotel by number of guest rooms, with 7,351 operational rooms across three towers as of 2025. Constructed in phases starting in 2003 as part of the Genting complex, it spans 36 floors including basements for parking and integrates with casinos, theme parks, and shopping to support high-volume . Its scale facilitates economies of , evidenced by Genting Malaysia's reported 99% for hilltop hotels including First World in 2024, contributing to group revenue of RM27.7 billion in FY2024 from leisure and gaming synergies. The Venetian Resort and , adjacent properties in , , form the second-largest complex with 7,093 combined rooms. Opened in 1999 and 2007 respectively, they emphasize luxury suites averaging larger than standard Las Vegas rooms, with integrated floors exceeding 500,000 square feet supporting revenue diversification beyond . Other notable large-scale hotels include the in Las Vegas with 5,044 rooms, operational since 1993 and known for convention facilities driving occupancy through events. These properties exemplify how expansive room inventories correlate with outlier revenue models, often exceeding $1 billion annually per complex via ancillary gaming and entertainment, though per-room rates remain moderated by volume pricing.
HotelLocationRoom CountKey Construction Fact
First World HotelGenting Highlands, 7,351Expanded post-2003 to integrate with 500,000 sq ft indoor theme park
The Venetian & The PalazzoLas Vegas, 7,09350-story Palazzo tower added in 2007 to Palazzo's Italian-themed complex
MGM GrandLas Vegas, 5,044Built 1993 with 30-story towers focused on mass-market accessibility

Oldest Continuously Operating Hotels

in , , holds the distinction as the oldest continuously operating hotel, having provided lodging since 705 AD when Mahito established it as a hot spring inn (). Operated by the same family across 52 generations—including adoptions to maintain succession—it has endured without interruption despite challenges such as fires in 1909 and 1916, and a damaging structures, through repeated reconstructions and adaptations that preserved core operations centered on natural hot springs (). Family stewardship, combined with Japan's cultural emphasis on traditions, has enabled incremental modernizations—like private baths and seismic reinforcements—while avoiding full closures, contrasting with Western hotels often disrupted by ownership changes or wars. Other enduring Japanese establishments include Hoshi Ryokan in Prefecture, founded in 718 AD as another onsen ryokan, which has similarly maintained continuity through family operation and seasonal guest patterns tied to mineral springs. (Kaiunso) in Shirahama, Wakayama , operational since 717 AD, exemplifies early coastal inn resilience via communal bathing and fishing community ties. These cases highlight how geographic isolation in mountainous or rural areas, coupled with low-overhead models reliant on natural features rather than luxury expansions, facilitated survival amid feudal shifts, earthquakes, and economic fluctuations without ceasing guest services. In , continuity is rarer due to frequent reconstructions from conflicts and plagues, but Zum Riesen in , —dating to 1411 with records of prior use as an since the —remains operational, its half-timbered structure renovated multiple times yet preserving medieval hosting functions like river trade lodging. Such longevity often stems from municipal protections and , though verification of unbroken operation is complicated by sparse pre-modern records and wartime interruptions, unlike Japan's documented genealogical chains.
Hotel NameLocationYear FoundedKey Continuity Factor
Yamanashi, 705 AD52-generation family operation; onsen-based resilience
Hoshi RyokanIshikawa, 718 ADEnduring model with mineral springs focus
(Kaiunso)Wakayama, 717 ADCoastal community integration and minimal disruptions
Zum Riesen, 1411Renovations preserving function amid European upheavals

Highest and Most Extreme Locations

The Hotel Everest View in Syangboche, , holds the for the highest-altitude hotel at 3,962 meters (13,000 feet) above , a distinction awarded in 2004 after its opening in 1971. Positioned on a ridge overlooking the Khumbu Valley and , the hotel features 10 rooms with panoramic views but lacks elevators and relies on or trekking access due to the rugged . Operations at this elevation demand adaptations for low barometric pressure, including supplemental oxygen availability to counter hypoxia-induced symptoms like headaches and fatigue, which affect up to 50% of visitors ascending rapidly from . Other high-altitude hotels exceed this mark, such as the Hotel Tayka del Desierto in Bolivia's region at 4,600 meters (15,091 feet), constructed from salt bricks in a environment with extreme diurnal swings from -20°C at night to 40°C daytime. challenges intensify above 4,000 meters, where of oxygen drops below 60% of sea-level values, prompting some resorts to install oxygen enrichment systems that raise indoor air oxygen to 24-27% via membrane separation technology, reducing acute mountain sickness incidence by up to 50% compared to ambient air. These systems, akin to those used in camps, filter from intake air but require reliable power generators to avoid failures in remote, low-oxygen settings. In polar extremes, the Icehotel in Jukkasjärvi, (67°N ), exemplifies viability in sub- conditions with average winter temperatures of -5°C indoors and external lows to -30°C, rebuilt annually from 30,000 tons of ice and river snow using CAD-designed molds for structural integrity against freeze-thaw cycles. Engineering feats include insulated suites with thermal bedding to maintain guest comfort amid 24-hour darkness in December-January, while systems employ methane-capturing bio-digesters to handle permafrost-limited drainage. Similar Arctic resorts, like those in , , incorporate reinforced foundations against seismic activity and encounters, with backup diesel heating to ensure habitability during blizzards where winds exceed 100 km/h. Underwater extremes, such as Jules' Undersea Lodge in , at 9 meters below , require pressure-resistant acrylic viewing ports and SCUBA access protocols to manage risks, with air recycling systems maintaining 21% oxygen amid constant humidity and marine . These locations underscore causal trade-offs: high-altitude hypoxia demands ventilatory aids, while cryogenic or subaquatic setups prioritize thermal and pressure isolation, often limiting stays to 24-48 hours for physiological safety.

Highest-Value Transactions

The highest-value transaction in hotel history occurred in 2019 when Blackstone Real Estate Income Trust acquired the real estate assets of the Bellagio resort in Las Vegas from MGM Resorts International for $4.25 billion in a sale-leaseback arrangement, allowing MGM to continue operations under a long-term lease. This deal surpassed previous records due to the property's prime location on the Las Vegas Strip, its iconic brand established since 1998, and diversified revenue streams from 3,950 hotel rooms, gaming, and entertainment attractions like the Bellagio Fountains. The transaction valued the asset at approximately $1.08 million per key, reflecting investor confidence in stable cash flows from high-occupancy luxury hospitality combined with casino operations. Prior to the Bellagio sale, the held the record for the most expensive U.S. hotel transaction, sold by to China's Insurance Group for $1.95 billion in 2014. At about $1.4 million per room for its 1,413 keys, the deal underscored the premium placed on historic properties in Manhattan's prestige markets, where scarcity of developable land and enduring prestige drive valuations. 's acquisition targeted global trophy assets for yield and capital appreciation, though subsequent ownership changes highlighted risks from geopolitical and regulatory factors affecting foreign buyers. These mega-transactions serve as benchmarks for industry valuation, often involving sale-leasebacks or partial stakes to unlock value while retaining operational control. For instance, a 2023 partial sale of a 22% stake in Bellagio to valued the full property at $5.1 billion, signaling sustained demand for irreplaceable assets amid rising interest rates. More recently, in 2025, Braemar Hotels & Resorts sold the 369-room Marriott Seattle Waterfront for $145 million, approximately $393,000 per key, illustrating upscale hotel valuations in prime urban waterfront locations. Such deals prioritize location in high-barrier markets like or New York, where barriers to entry include zoning restrictions and brand moats, over pure hotel metrics like , as gaming and experiential elements amplify total returns.
PropertySale PriceYearBuyerNotes
Bellagio, Las Vegas$4.25 billion2019BlackstoneSale-leaseback; ~$1.08M per key
Waldorf Astoria, New York$1.95 billion2014Anbang Insurance GroupHistoric luxury; ~$1.4M per key
These outliers illustrate how hotel valuations peak for properties with defensible revenue models, contrasting with broader market trends where average single-asset deals rarely exceed $200 million. Hotel purchase prices in the United States vary widely depending on property size, location, type (e.g., economy, midscale, luxury), and market conditions. For major single-asset sales over $10 million, 2025 data shows averages around $200,000 per room in Q1 rising to $279,000 in Q2, with individual transactions ranging from approximately $60,000 to over $1 million per room. Total purchase prices for these major hotels typically range from $10 million to hundreds of millions (e.g., up to $425 million for large resorts), while smaller hotels or motels can sell for under $1 million to several million dollars.

Controversies and Criticisms

The Safe Hotels Act, enacted in October 2024 and effective May 3, 2025, exemplifies regulatory interventions imposing licensing and operational mandates on hotels, ostensibly to enhance guest safety and cleanliness. The legislation requires all hotels to obtain a renewable two-year license from the Department of Consumer and Worker Protection, with fees scaled by room count, alongside mandates for continuous front-desk staffing, panic buttons for employees, and direct employment of core staff such as housekeepers and security personnel in hotels exceeding 100 rooms, prohibiting subcontracting. Industry analyses highlight these requirements as burdensome for independent operators, potentially elevating labor and compliance costs by forcing restructuring of longstanding outsourcing models, with violations carrying penalties up to $5,000 per offense. Critics, including hotel associations, argue the Act disproportionately harms smaller, non-union properties by deterring investment and inflating operational expenses without commensurate safety gains, framing it as a union-favoring measure amid New York City's pre-existing hotel licensing absence. A January 2025 Independent Budget Office analysis of the final bill version found it exempts many low-cost, limited-amenity independents—reducing affected non-union hotels from 95% under the original draft to 27%—indicating limited empirical reach despite broad rhetoric on worker and guest protections. Operators report anticipated bottom-line erosion from mandatory direct hiring, which could strain cash flows in a high-tax, low-margin market, potentially accelerating closures or conversions among family-owned establishments. Beyond targeted acts like this, ordinances and licensing regimes nationwide impose supply constraints and administrative hurdles that elevate hotel development costs, often prioritizing density controls over market responsiveness. Empirical reviews of occupational and licensing indicate these add direct fees, compliance paperwork, and delay-related expenses—sometimes equating to thousands per applicant—while studies on link them to reduced housing and commercial builds, indirectly hiking prices without verifiable proportional reductions in incidents. Proponents cite necessities like fire codes and hygiene standards, yet causal assessments reveal that such interventions frequently yield diminishing returns relative to economic distortions, as evidenced by persistent urban hotel incident rates in heavily regulated locales like New York despite layered oversight. These disputes underscore tensions between regulatory intent and unintended anti-competitive effects, where mandates favor entrenched players over agile small operators.

Labor and Employment Issues

The hotel industry has faced persistent staffing shortages since 2020, with approximately 77% of U.S. hotels reporting understaffing in 2024, declining slightly to 65% in early 2025 as job openings fell from 1.18 million to 985,000 over the prior year. These shortages stem primarily from workers shifting to sectors offering higher effective compensation amid post-pandemic labor market dynamics, including accelerated retirements, reduced inflows, and a mismatch between rigid structures and rising living costs, rather than widespread employer malfeasance. Industry rose by an average of 2.13% in 2025 projections, yet failed to fully offset and compete with alternatives like retail or gig work, exacerbating turnover rates that reached 50-100% annually in frontline roles. Unionization efforts have intensified as a response, though the sector remains lowly unionized at about 7.2% of hotel workers in 2024, compared to 1.6% in food service. Organized labor, led by groups like , has pursued strikes demanding wage hikes of 20-50% and enhanced benefits, resulting in over 100 work stoppages at 46 Los Angeles-area hotels in 2023 alone, extending into multi-year disputes elsewhere. Outcomes have been mixed: some settlements yielded 10-20% raises and staffing guarantees, as in post-2024 resolutions in , but prolonged actions led to lost wages for participants—estimated at thousands per worker—and operational disruptions costing hotels millions, with no guaranteed long-term employment gains. Strike activity quieted in 2025, reflecting fatigue and partial concessions, yet union win rates in elections climbed to 80%, signaling growing leverage amid shortages. While unions advocate for worker protections against exploitative hours and inadequate pay—issues substantiated by high injury rates in (e.g., 7.5 per 100 workers annually)—critics contend that rigidities, such as rules and work-rule restrictions, undermine the flexibility essential for a seasonal, guest-driven industry, potentially prolonging shortages by inflating labor costs 20-30% above non-union peers. Empirical from unionized show elevated operational expenses correlating with reduced hiring, as fixed contracts limit part-time or variable , though protections have demonstrably reduced arbitrary dismissals in represented workforces. Balancing these, shortages have prompted non-union innovations like perk enhancements (e.g., flexible scheduling apps) and wage premiums, which filled roles faster than strike threats in comparable markets, underscoring that market-driven adjustments often outpace adversarial tactics for sustainable growth.

Social, Ethical, and Environmental Concerns

Incidents of alleged in hotels, such as racial in service or accommodations, gained media attention in through viral videos depicting staff questioning guests' legitimacy or denying entry. However, such cases remain rare relative to the industry's scale, with U.S. hotels recording approximately 5 billion room nights annually and Equal Employment Opportunity Commission (EEOC) charges across all sectors totaling around 76,000 in fiscal year , of which hospitality-specific filings constituted a small proportion. amplification of isolated events often outpaces empirical incidence rates, potentially inflating perceptions of systemic issues in an industry reliant on high-volume, impersonal transactions. In response, many hotels implemented unconscious bias training programs, with chains like Marriott and Hilton mandating sessions post-2018 to foster awareness among staff. Yet, broader indicates these interventions yield limited long-term behavioral change, often failing to reduce implicit biases or discriminatory outcomes due to rebound effects and lack of structural accountability. Free-market incentives, such as customer reviews on platforms like penalizing perceived bias, have proven more effective in prompting voluntary improvements than regulatory mandates, as hotels compete for diverse clientele without coerced diversity quotas distorting hiring. Hotels face ethical risks from , with 2018 data from the indicating that 80% of reported commercial sex trafficking cases involved hotel properties for housing or transactions. Traffickers exploit transient environments with cash payments and restricted guest movement, though industry-wide prevention measures—including staff training on red flags like frequent "Do Not Disturb" requests or multiple adults with minors—have expanded via Department of Homeland Security toolkits and state laws requiring reporting protocols in over 30 U.S. jurisdictions by 2024. Effectiveness varies, with some chains reporting increased detections leading to interventions, but underreporting persists due to fear of reputational damage; empirical audits suggest proactive surveillance and partnerships with NGOs mitigate risks more reliably than sporadic compliance. Environmentally, the hotel sector generates substantial impacts, including 289,000 tons of annual solid in the U.S. alone, high water consumption averaging 150-400 gallons per room night, and use comprising 60% of operational carbon footprints. Claims of , such as towel reuse programs, have faced accusations of greenwashing, as early implementations in the 1960s primarily cut laundry costs rather than meaningfully reduce water use, with actual savings offset by other inefficiencies. Market-driven responses, including certifications like that correlate with higher property values, have spurred genuine adoption of LED and diversion, driven by 83% of travelers prioritizing eco-practices in booking decisions as of 2023. This consumer-led shift outperforms top-down regulations, as hotels innovate for without universal mandates risking operational disparities.

Long-Term Residences and Alternatives

Extended Stays in Hotels

Extended stay hotels provide accommodations designed for guests occupying rooms for periods typically ranging from one week to several months, featuring apartment-style suites equipped with full kitchens, separate living areas, and on-site facilities to support self-sufficiency. These properties differ from transient hotels by emphasizing reduced daily services, such as optional weekly housekeeping, to lower operational costs while accommodating business travelers, relocating professionals, or temporary workers. The global extended stay hotel market was valued at USD 53.24 billion in 2023, with projections to reach USD 98.80 billion by 2030 at a compound annual growth rate (CAGR) of 9.4%, driven by demand for flexible, furnished lodging amid workforce mobility and remote work trends. In the United States, extended stay segments have shown robust performance, with revenue per available room (RevPAR) hitting a record $78 in 2024, 14% above 2019 levels, reflecting increased investor interest and supply growth. Pricing models for extended stays incorporate discounted weekly or monthly rates, often 20-50% below equivalent nightly transient rates, to incentivize longer bookings; for instance, chains like Extended Stay America promote "stay longer, save more" programs with unlimited amenities refills included. Midscale properties command higher premiums than economy options due to enhanced comfort levels, yet both segments prioritize cost efficiency through streamlined staffing, typically limited to 5-7 on-site personnel. Advantages of extended stays include booking flexibility without long-term leases, furnished units eliminating relocation hassles, and built-in features like 24/7 staff presence, making them preferable for transient corporate needs over short-term rentals. However, prolonged occupancy accelerates room compared to short-term use, as guests treat spaces more like residences, leading to heightened demands and insurer scrutiny for properties shifting to this model. Regulatory challenges arise when guests transition from transient status to tenants after thresholds like 30 days in many U.S. jurisdictions or 90 consecutive days in New York, necessitating formal processes under landlord-tenant laws rather than simple check-outs. This shift imposes legal obligations on operators, including notice periods and court proceedings for non-payment or violations, complicating turnover and increasing administrative burdens distinct from standard hotel operations.

Comparisons to Other Lodging Forms

Hotels differ from hostels primarily in , amenities, and target demographics. Hostels typically provide dormitory-style shared accommodations with bunk beds and communal bathrooms, catering to budget-conscious backpackers and young travelers seeking social interaction through common areas and organized events. In contrast, hotels offer private rooms with en-suite facilities, daily , and on-site services such as and , appealing to business travelers and families prioritizing comfort and convenience over communal experiences. This structural difference results in hotels commanding higher average daily rates, often 2-3 times those of hostels in comparable locations, reflecting the added operational costs for individualized service. Compared to short-term rentals like , hotels emphasize and operational stability, subjecting properties to stringent building codes, fire standards, and health inspections enforced by local authorities. listings, while offering flexible, home-like stays that can accommodate groups or longer durations at potentially lower costs, often lack uniform oversight, leading to reported gaps such as inadequate exits or unvetted hosts. Post-2024 regulatory backlashes have intensified, with cities like New York effectively banning short-term rentals under 30 days since 2023 local laws, and mandating the removal of over 66,000 unlicensed listings in 2025 to curb and housing pressures. These measures highlight hotels' advantage in consistent guest protections, though 's model enables scalability for hosts without capital-intensive infrastructure. In comparison to apartments, which serve long-term residential needs, hotels typically incur operating expenses of 60-70% of revenue due to higher labor, amenities, and marketing costs, versus 35-50% for apartments. This disparity underscores economic differences between short-term hospitality operations and sustained tenancy models. Economically, hotels generate superior direct job creation per room due to labor-intensive requirements for front-desk operations, , and full-time , often supporting 1-1.5 jobs per room in the U.S. sector. and similar platforms, largely owner-operated with minimal on-site personnel, contribute fewer direct roles, though they bolster indirect through platform-facilitated ; for instance, U.S. activity supported over 1 million jobs in 2024, many part-time or ancillary. While 's disruption has drawn criticism for inflating local costs and strains, empirical analyses indicate net gains, with short-term rentals driving additional visitor spending that expands overall economic activity beyond hotel capacities alone, as seen in EU-wide contributions of €149 billion and 2.1 million jobs from such platforms in 2023. This offsets localized costs, with studies showing incremental demand from rentals exceeding hotel growth in recovering markets.

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