16 Types of Hospitality Properties in Commercial Real Estate

The hospitality asset class covers a range of property types, each specializing in a different guest experience, service, or lodging. Understanding the nuances of hospitality helps suppliers and service providers expand their network and opportunities.

This post explains four types of hospitality properties, each of which has several subtypes, followed by four types of hospitality business models.  

What is Hospitality in Commercial Real Estate?

Hospitality in CRE is any property that provides short-term accommodations or a type of short-term lodging experience. In commercial real estate, the structure of hospitality is a hybrid of real estate and dynamic business operations. Unlike other CRE asset classes that seek long-term tenants, hospitality typically seeks short-term guest relationships. A guest (an occupant) reserves a space from a host (the property itself) for a specific experience or event. 

Hospitality properties often provide more personalized and comprehensive services compared to traditional property management (think office buildings, retail, and mixed-use CRE). Understanding these distinctions helps suppliers and service providers looking to expand their hospitality client base.

Hotels & Accommodations

Hotels and short-term accommodations are likely the most well-known forms of hospitality properties. They are likely what first come to mind for servicers or suppliers experienced in the industry. 

Full-service hotels

A full-service hotel provides a complete travel experience by not only offering short-term lodging, but also amenities, food, services, and entertainment. Full-service hotels charge a premium for maximum guest comfort and round-the-clock staffing. A full-service hotel may have multiple restaurants, spa service, pools, golf courses, shuttle services, and more. An example would be a Ritz-Carlton hotel, which is known as a five-star, full-service hotel chain. 

These are the top tier of hotel accommodations, catering to guests who value luxury experiences.

Who to contact: Service providers and vendors looking to work with full-service hotels should connect with the director of hotel operations or facilities management, who oversee vendor relationships for housekeeping, maintenance, dining services, and guest amenities.

Limited service/select service hotels

A limited service or select service hotel offers mid-range, or “3-star,” accommodations, providing essential amenities at lower price points than full-service hotels. Limited service hotels offer private rooms and guest services, of course, but aren’t resort destinations. A limited service hotel may have a restaurant, a fitness center, and a pool, for example. An example of a limited service hotel would be the Hyatt Place Hotels located across the U.S. 

Limited service hotels cater to travelers who prioritize affordability and essential comforts over extensive luxury amenities.

Who to contact: Vendors and service providers should direct outreach to the general manager or operations manager, who manage budgets and vendor relationships for essential services like housekeeping, maintenance, and facility upkeep.

Extended stay hotels

Extended stay hotels offer guests private rooms for a week or longer without having to sign a lease. Extended stay hotel rooms typically include amenities like a full kitchen, separate living area, and one or more bedrooms, resembling a small apartment or condo. The difference is that extended stay hotels usually have housekeeping services and pack all the amenity costs into the room rate. Extended stay hotels may be used by people travelling for business or for extended vacations. An example would be the chain Extended Stay America, which specializes in hotels with kitchenettes. 

Extended stay hotels are an ideal choice for travelers who require a home-like atmosphere and amenities for longer trips, whether for business or leisure.

Who to contact: Service providers offering housekeeping, maintenance, appliance repair, or residential-style amenities should connect with the general manager or property manager, who oversee the specialized operations that keep extended stay guests comfortable long-term.

Boutique hotels

Boutique hotels are smaller capacity hotels that typically have 100 rooms or fewer. They’re common in the hearts of cities where space is at a premium and usually have unique themes or aesthetics. Boutique hotels may operate independently or be established as a subsidiary of a larger chain. While they may not have as comprehensive amenities as a full-service hotel, boutique hotels provide unique offerings tied to their unique style or history. An example of a boutique hotel is the Argonaut Hotel, located in San Francisco, which has a nautical theme. 

Boutique hotels cater to travelers seeking a more intimate, personalized, and memorable accommodation experience.

Who to contact: Service providers should connect with the owner or general manager, who curate vendor relationships to maintain the hotel's distinctive character and ensure services align with the boutique property's unique brand and guest experience.

Vacation rentals/residences

Vacation rentals are private residences that can be rented on a short-term basis. Unlike traditional hotels, vacation rentals don’t have on-site staff or services. Instead, they allow travelers to operate independently in relative privacy, which can be attractive for larger groups or families. A vacation rental or residence may be owned privately by a person or family and operated through a service like Airbnb and VRBO, or professionally managed by a vacation rental company. 

Vacation rentals offer a unique accommodation option for travelers who value privacy, independence, and the comforts of a home-like setting.

Who to contact: Service providers and vendors should target property management companies and real estate agencies that oversee multiple vacation rental properties, as these firms handle vendor relationships for cleaning, maintenance, repairs, and guest services across their entire portfolio.

Business and corporate hotels

Business or corporate hotels forgo amenities like pools, spas, or recreation to focus on guests traveling to an area for business. They’re commonly situated next to convention centers and feature conference centers, work areas, business centers, and fast Wi-Fi to be used by traveling professionals. Unlike the leisure-focused hotels, the focus for a business or corporate hotel prioritizes weekday bookings and may offer discounted rates for extended stays and large group bookings. An example would be the Club Quarters Hotel in Chicago, which features six conference areas that can be configured depending on guests’ needs. 

Business and corporate hotels cater specifically to the needs of professional travelers, offering a combination of work-friendly amenities and flexible event spaces.

Who to contact: Service providers should connect with the general manager or director of sales and marketing, who negotiate corporate contracts, manage group bookings, and oversee vendors for conference services, IT infrastructure, and business amenities.

Airport hotels

As the name suggests, airport hotels are either adjacent to or within a mile of a major airport. They focus heavily on providing convenient shuttle services to and from the terminals. These hotels are also staffed 24 hours to accommodate guests who have early and late flight times. They typically don’t offer many amenities, as guests usually stay only a single night. Airport hotels receive additional bookings from airlines compensating passengers for delayed or canceled flights, which is a source of income unique to airport hotels. An example of an airport hotel is the Hilton Charlotte Airport, which is an airport hotel located within a mile of Charlotte Douglas International Airport.

Who to contact: Service providers should connect with the general manager or facilities manager, who manage round-the-clock operations, coordinate with airlines, and oversee vendors for shuttle services, housekeeping, maintenance, and guest services.

Budget and economy hotels

A budget or economy hotel is on the opposite end of the spectrum to full-service hotels. Budget and economy hotels typically offer only the essentials, like compact private rooms, Wi-Fi, and a continental breakfast. A budget hotel still requires basic services such as cleaning, security, and maintenance in order to stay competitive. An example would be Holiday Inn Express. 

Who to contact: Service providers should connect with the general manager or operations manager, who prioritize cost-effective vendors for cleaning, security, maintenance, and facility upkeep while maintaining competitive standards.

Motels

Motel actually stands for “motor hotel,” as they were originally established along highways for guests traveling cross-country. It’s common for motel buildings to have one or two stories with the room doors facing inward toward the parking lot so that drivers can park directly outside of their rooms. Motels are budget-first with minimal lobbies and amenities. They typically offer only Wi-Fi and sometimes a swimming pool. The Super 8 Motel chain is a common example, but like budget and economy hotels, they can also be privately owned. 

Who to contact: Service providers should connect with the owner or general manager, who manage vendor relationships for cleaning, maintenance, security, and facility upkeep on a lean operational budget.

Timeshares

Timeshares are portions of a resort condo or room that frequent guests can purchase to have a guaranteed one- to two-week stay annually. Timeshares may consist of a single room or extended stay space managed by the host resort. Each owner receives a guaranteed one- to two-week period annually to occupy their designated unit. Today, timeshares are organized around a points system that owners buy into a program can spend at resorts across the world every year. The upfront purchase cost means timeshares are typically offered only at premium or highly desirable destinations. As an example, Marriott Resorts offer timeshares in the form of the Marriott Vacation Clubs, which is a points system redeemable at any Marriott. 

Who to contact: Service providers should connect with the resort management company or property manager, who oversee vendor relationships for housekeeping, maintenance, concierge services, and facility upkeep across the entire timeshare property.

Resorts

A resort is a comprehensive destination designed to have everything someone could want during a vacation — dining, entertainment, lodging, shopping and services — eliminating the need to leave a property. 

All-inclusive resorts

All-inclusive resorts are destinations designed to have a single fee that includes unlimited meals, drinks, and use of all resort amenities. An all-inclusive resort offers premium, round-the-clock services, for which guests pay up front and enjoy an experience that’s transaction-free. These resorts offer 24-hour services and plenty of activities so that they operate as vacation destinations, rather than just a limited service hotel. An example of an all-inclusive resort would be the Sandals Resort chain in the Caribbean. 

Who to contact: Service providers should connect with the general manager or director of guest services, who oversee vendor relationships for food and beverage, housekeeping, recreation, and entertainment across the all-inclusive operation.

Mega resorts

A mega resort is a scaled-up vacation destination that can handle not just hundreds, but thousands, of guests. Mega resorts feature multiple iterations of standard resort amenities — multiple restaurants, pools, entertainment venues, and conference spaces — creating extensive vendor and service opportunities. Of course, mega resorts are less common because of their size, cost and scale. An example would be the Resorts World Las Vegas, an 88-acre luxury megaresort.

Who to contact: Service providers should connect with the general manager or director of operations, who manage complex vendor relationships across food and beverage, housekeeping, maintenance, recreation, and entertainment across the sprawling property.

Experiential resorts (ski, golf and spa, beach)

An experiential resort themes itself around a certain type of activity related to its location, such as the beach, skiing, or golf. Experiential resorts excel at one niche experience and cast a wider net to attract guests from further away for a curated experience. Because of this, experiential resorts may focus on their specialty rather than having a general suite of amenities or activities, since guests are drawn by a specific activity rather than general resort amenities. An example of an experiential resort would be The Resort at Pelican Hill, a golf resort with two golf courses that overlook the Pacific Ocean. 

Who to contact: Service providers should connect with the general manager or director of operations, who manage vendor relationships for the specialized amenities and services tied to the resort's signature experience—whether skiing, golf, spa services, or beach activities.

Casino hotel resorts 

Casino hotels or resorts are hotel/casino combos located on Native American reservations or in other areas where gambling is legal. They typically offer loyalty programs where frequent visitors accumulate points redeemable for shows, dining, hotel upgrades, and other amenities. Casino hotel resorts are less common because of their unique location requirements. An example of a Casino hotel resort would be the Talking Stick Resort in Scottsdale, Arizona.

Who to contact: Service providers should connect with the general manager or director of operations, who manage vendor relationships for gaming operations, hospitality services, entertainment, dining, and hotel amenities.

Meetings & Events Centers

An event center is a space intended for one-time use by a company or individual to host a party, professional event, or wedding. Event centers are typically cleaned and prepared before and after an event and may have on-site staff to provide services specific to the space (such as security). An event center can be as small as a converted mansion or luxury home, or as large as a convention center located near a major city. An example would be Huntington Place in downtown Detroit, which commonly hosts automotive conferences. 

Who to contact: Service providers should connect with the event director or operations manager, who manage vendor relationships for catering, security, setup and breakdown, audiovisual services, and facility maintenance for each event.

Other

Bed and breakfasts

A bed and breakfast is a privately owned home or property that’s been converted to a hospitality business. Bed and breakfasts offer an intimate experience where the host prepares a room for you and cooks breakfast for you in the morning. Due to their smaller size, bed and breakfasts offer limited opportunities for suppliers and vendors. That said, some bed and breakfasts do need basic services like groundskeeping or servicing individual air conditioning window units for each room. 

Who to contact: Service providers should connect directly with the owner or property manager, who make all decisions regarding maintenance, repairs, groundskeeping, and other operational services.

Hostels

A hostel is a type of hospitality property where travelers rent beds in communal spaces rather than their own rooms. They’re far cheaper than other options on this list, as they’re aimed at budget and social travelers, such as backpackers and international travelers. They’re also not as common in the U.S. as they are in Europe, for example.

Who to contact: Service providers should connect with the owner or general manager, who manage vendor relationships for cleaning, maintenance, security, and common area upkeep across the shared spaces.

How Hospitality Companies are Operated

The Franchise Model

Franchises are privately owned by an investor but operate under a brand name in exchange for a portion of gross revenue or a fee to license the name. In return, franchisees gain access to brand recognition, reservation systems, and marketing support. Hotels will have different franchise structures depending on the size and oversight required. The franchisee manages day-to-day operations and vendor procurement, though some responsibilities may be retained by the brand. For example, Marriott and Hilton offer different franchise arrangements, allowing franchisees to maintain distinct brand identities, such as boutique hotel concepts, within the larger portfolio. 

Who to contact: Service providers and vendors should target the franchisee (the individual hotel owner/operator), who makes day-to-day purchasing and vendor decisions. However, for enterprise-level partnerships or services applicable across multiple franchise locations, connecting with the franchisor's vendor management team may be more efficient.

The Management Agreement

A management agreement involves property owners hiring a hotel management company to run the day-to-day hotel operations. This means that the hotel management company, not the owner, is responsible for inventory and services. Unlike traditional CRE property management, hotel management companies handle extensive operational responsibilities beyond maintenance and leasing. 

Who to contact: Service providers should connect with the hotel management company, as they control vendor relationships and purchasing decisions for all hotel operations and services.

The Owner-Operator

Owner-operators are responsible for all management, booking, and advertising for their hotel. This is less common with larger hotels and more common for boutique hotels or budget models where a single owner can manage the operation. The owner is the manager and therefore the primary point of contact for all vendors. They may also be more likely to delegate responsibilities, like landscaping, to third parties.

Who to contact: Service providers should connect directly with the owner, who makes all decisions regarding vendors, services, and operational partnerships. 

Hotel REITs

Similar to other CRE investments, Real Estate Investment Trusts sometimes purchase hospitality assets as part of their investment portfolio. In the case of hospitality, a hotel REIT is a riskier investment, as there are high profits during peak seasons but experience revenue declines during off-season periods. REITs distribute hotel revenues to shareholders and may offer corporate tax advantages. Most REITs do not directly manage hotel operations; instead, they hire third-party management companies.

Who to contact: Service providers should connect with the hired management company or the REIT's asset management team, depending on the operational structure of the specific trust.