Larger than ‘bed and breakfast’ accommodation, typically offering breakfast included in room rate but not licensed to serve alcoholic beverages. Guest houses range from low-budget rooms to luxury apartments, and tend to be like small hotels in larger cities. They are rated from one to four stars (one to five diamonds in UK) on the basis of the level of cleanliness, quality of food, hospitality, and service, and whether or not they offer attached bathrooms. Called boarding house in the US.

A guest house (also guesthouse) is a kind of lodging. In some parts of the world (such as for example the Caribbean), guest houses are a type of inexpensive hotel-like lodging. In still others, it is a private home which has been converted for the exclusive use of guests accommodation. The owner usually lives in an entirely separate area within the property and the guest house may serve as a form of lodging business. This type of accommodation presents some major benefits such as:

Personalized attention
Healthy and homemade food
Quietness
Inexpensiveness
Modern design

Pakistan
The trend of Guest House (B&B) in Pakistan is quite widespread. Popular resorts like Murree, Islamabad, Lahore, Karachi, Multan which attract many tourists from different parts of the country, have a number of such rest houses. The expenses can vary, depending on the quality of facilities. Most bed and breakfast facilities tend to expediently cater to families, given the high level of group tourism, and offer suitable overnight lodging.

Overall

In some areas of the world, guest houses are the only kind of accommodation available for visitors who have no local relatives to stay with. Among the features which distinguish a guest house from a hotel, or inn is the lack of a full-time staff.

Bed and breakfasts and guest houses in England are family owned and the family live on the premises though family members are not normally available during the evening. However most family members work a 10- to 12-hour day from 6 am as they may employ part-time service staff. Hotels maintain a staff presence 24 hours a day and 7 days a week, where as a guest house has a more limited staff presence. Because of limited staff presence, check in at a guest house is often by appointment. An inn also usually has a restaurant attached.

In Japan, tenants in a guest house have to pay a substantial damage deposit, and have to pay a cleaning fee when they leave.

In India, a tremendous growth can be seen in the guest house business especially in Delhi-NCR (national capital region) where progress in IT sector and Commonwealth Games 2010 were two most influential factor. Nowadays guest house accommodation sector has improved itself a lot. Even a home converted guest house is also offering 3 stars equivalent facilities to its guests.