There are an infinite number of different categorizations for classifying hotels, but Solly Assa's favorite (and probably the public's choice) is the star-grading system. A 1 star hotel offers a cheap stay with little options, whilst a 5 star hotel offers everything that you would ever want and need in a hotels.
For more, see Assa's stream: https://www.youtube.com/watch?v=7OX3vae54Vg