Motel vs Hotel: What’s the difference? And does it matter?

Appearing on ancient trade routes, they’d have provided basic overnight shelter for traveling merchants in exchange for some form of payment.

In all likelihood, though, this sort of accommodation stretches further back into unrecorded history to a time we can only imagine.

On the other hand, the motor hotel, or motel, can trace its origins – or at least the origin of the word ‘motel’ – to a precise and definite point: post-war America, an era still in living memory for a few readers.

Their stories couldn’t be further apart.

Or could they? There’s an argument that the first hotels operated a business model more akin to motels than modern hotels. And therein lies a confusion that we seek to unpick in this short blog post.

Motels: Roadside accommodation designed for the motor tourist

Combining the words ‘motor’ and ‘hotel’ into a well-worn portmanteau, a motel is a type of lodging designed primarily for motorists, characterized by its roadside location and easy access to the parking lot.

Becoming popular in the mid-20th century during the rise of American automobile travel, a motorist’s hotel often features a single- or two-story building where guests can park directly in front of their rooms.

Motels cater to travelers seeking short-term accommodation, typically for a night or two, with common types of guests including:

• Road trippers: people driving long distances who need a convenient place to rest before continuing their journey.

• Budget travelers: guests seeking affordable lodging with fewer amenities.

• Business travelers.

• Families or individuals in transit.

Choosing a motel over a hotel will usually be for one or more of these practical reasons:

• Affordability: offering fewer services, motels are generally less expensive than hotels, making them attractive to the budget-conscious and those prioritizing no-frills experiences.

• Driver convenience: with free parking right outside your room, the setup is ideal for those traveling by car, offering ease of access and quick check-ins and check-outs.

• Proximity to highways: motels are located near major highways, making them convenient for road trip guests needing a quick overnight stay.

With rising living costs across the board, could motels see a resurgence?

It’s an interesting question. 

While there’s no shortage of budget hotels vying for cash-strapped travelers, motels could benefit from ‘nostalgia’ tourists and those keen to experience boutique motel transformations. Add to that their enduring affordability, convenience and the rise in extended stay motels, and you’d be unwise to bet on their demise.

Hotels: Accommodations for every traveler, in every destination

A hotel is a commercial establishment that provides lodging, meals and often additional amenities for travelers. Unlike motels, hotels are typically large, multi-story buildings that cater to a broad range of travelers, offering varying levels of comfort and services. Hotels are commonly located in urban areas, near airports or in popular tourist destinations, and range from budget-friendly to luxurious resorts.

Hotels come in many forms, each tailored to different traveler preferences and budgets. Examples of hotel types include:

• Standard hotels: these offer essential amenities like clean rooms, a reception area and dining options, and are commonly found in urban and suburban areas.

• Luxury hotels: these feature high-end services such as gourmet restaurants, spas, concierge services and premium bedding, and they cater to affluent travelers.

• Boutique hotels: these are smaller, uniquely designed hotels often with a distinct theme or style, appealing to travelers looking for personalized experiences.

• Resorts: these provide a full vacation experience with amenities like pools and golf courses, and are often located in scenic areas.

• Extended-stays: these offer larger hotel rooms or suites with kitchenettes, catering to guests on longer stays that can last for weeks or months.

• Budget hotels: these provide affordable lodging with basic amenities for cost-conscious travelers, and are typically found in high-demand areas like city centers or airports.

• Bed and breakfasts (B&Bs): independent or marketed through the likes of Airbnb, these are smaller establishments located in private homes, offering cozy accommodations with complimentary breakfasts. While not traditional hotels, they might be considered as such due to their lodging services.

Hotels attract a diverse range of guests, including:

• Business travelers: they often stay for several nights and seek convenient locations near business hubs and amenities like conference rooms or Wi-Fi.

• Vacationers and tourists: their stays range from weekend getaways to extended vacations lasting weeks, and they choose hotels for comfort, convenience and proximity to attractions.

• Families: they opt for hotels with family-friendly features such as pools, on-site dining and spacious rooms.

• Long-term guests.

Guests select hotels over motels for several reasons, such as:

• Amenities: hotels usually provide a wider range of services and amenities.

• Comfort and quality: hotels generally offer higher-quality furnishings and ambiance.

• Location: the locations we outline above offer convenient access for travelers who have come to stay somewhere specific rather than pass through en route.

• Extended stays: hotels with suites and kitchenettes cater to guests staying for weeks or months.

• Professional atmosphere: business travelers often prefer hotels for their professional environments, meeting facilities and reliable internet.

• Safety and reputation: hotels often have stricter security measures and a stronger brand reputation, giving guests peace of mind.

3 Ways to tell the difference between a motel and a hotel

The three key differences between motels and hotels relate to their location, the size of the room and property layout, and amenities. So let’s dig a little deeper into each of these attributes.

1. Location

Motels are staging posts on journeys. Unlike hotels, they’re not usually a compelling feature of a stay in their own right. They therefore tend to be found in remote, rural areas, and often non-descript locations, whereas hotels are more likely located in urban or tourist destinations.

Of course, these differences can blur: a night at an airport hotel is hardly the centerpiece of your vacation, while some motels might predate the urban hubs that grow around them. But these are useful rules of thumb.

2. Room sizes and property layouts

The physical properties of motels provide a striking difference to hotels.

For example, motels are traditionally limited to one or two floors, while all but the smallest of hotels are multistorey with a much higher number of rooms. Motels usually have exterior entrances for ease of access from your vehicle, in contrast to hotels and their near-universal central lobbies. And motel rooms tend to be smaller and more functional.

Again, these distinguishing characteristics don’t comply with any hard-and-fast rules; these features can blur, particularly in reference to small independent hotels. But they’re true of most establishments.

3. Amenities

Put simply, motels offer very little in the way of amenities. It’s just not part of their model, and it’s reflected in the price and travelers’ expectations, whereas hotels can and often do offer anything from this non-exhaustive list:

• Extra room amenities and features, such as en suite bathrooms, soundproofing, minibars, irons and Wi-Fi.

• General services, like a concierge, room service, luggage storage and complimentary breakfast.

• Transport-related amenities, such as valeting and airport shuttles.

• On-site amenities, such as swimming pools, gyms and fitness centers, spas, an on-site restaurant, bars… the list goes on.

Clearly, not all hotels offer all of these amenities, particularly at the lower end, and some motels offer a few of them. So treat this as another rule of thumb.

Hotel vs Motel: What owners and managers need to know

So what does this all mean for people running these establishments? After all, distinguishing between a hotel and a motel has implications beyond appearances.

The differences discussed above clearly call for their own unique operational approaches, many of which will be easy to infer. But what about attracting business in the first place?

This boils down to your marketing and distribution efforts and your pricing strategy.

How the differences impact marketing efforts

When marketing your hotel, it’s all about the use of polished branding, loyalty programs and exploiting online travel agencies (OTAs) to emphasize amenities, luxury and unique experiences. Social media campaigns and partnerships with influencers highlight their upscale features or unique themes. Get this right and you’ll drive up your occupancy.

The hotel star rating system also impacts heavily on hotel marketing in ways that don’t apply to motels. So what should motel marketers do?

Their focus should be on affordability, convenience and proximity to highways. Marketing can often include local directory listings, clear roadside signage and promotions on budget-focused booking platforms.

What each label means for pricing strategies

A core component of revenue management, pricing strategies are at the heart of competitively run hotels and motels.

Focused on appraising your competitors’ prices, assessing future demand and weighing them up against your marketing activities, past performance data and current booking patterns, your pricing strategy is a daily concern and something you should monitor closely – particularly in a world of dynamic pricing.

The fundamentals of dynamic pricing are common to establishments offering all types of accommodation. But there are two core considerations to bear in mind when comparing motels with hotels:

• Motels have fewer costs and can consequently offer less expensive rates while staying profitable.

• Given everything we discuss above about the simple utility of motels, price is one of the biggest drivers of choice. So don’t underestimate the care and attention your associated strategy and implementation require (not that it’s not also very important for hotel managers).

Learn how better property management boosts bookings and drives revenue

Whether you’re a hotel manager or motel owner, smart property management is the only way forward in the hospitality industry.

An isolated motel in the middle of nowhere might get you some business on the basis of an “if you build it, they will come” mentality, but it’s never enough for sustainable profit.

So continue your education to take your operations to the next level.