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.

Before the modern word "hotel" was popularized in the late 1700s, these establishments were primarily known as Inns, Hostels, or Taverns. The word "Inn" stems from Old English, describing a dwelling or lodging house where travelers could find food, drink, and a bed for themselves and their horses. In medieval Europe, "Hospices" were often run by religious orders to provide shelter for pilgrims and the poor. The term "Hotel" itself is derived from the French word hôtel, which originally referred to a large, grand private residence of a nobleman (like the Hôtel de Ville or City Hall), rather than a public place of lodging. It wasn't until the opening of grander establishments like the "Grand Hôtel" in London in the 18th century that the word shifted into the public lexicon to describe a more sophisticated and professional version of the traditional Inn. In 2026, many historic properties still use the term "Inn" to evoke a sense of cozy, traditional hospitality, even if they offer five-star modern amenities that the ancient innkeepers could never have imagined.