A teenage Internet chatroom is very much like a school playground, where children hang out and chat in groups or on a one-to-one basis about the latest crazes or what they watched on TV last night. Habbo Hotel builds on this social experience, by linking children across the globe, and enabling them to engage in real-time conversation.

Habbo Hotel is designed to fit comfortably within the teenage lifestyle, where children are liberated by the anonymity of the Internet. The site's 3D structure introduces the concept of geographical space, which ensures a realistic experience for members. It takes time to move around the virtual hotel, and depending on the distances involved, users may not hear what other people are saying.

Registered members create a customised avatar, known as a Habbo. Habbos are able to talk, shout, dance and swim, and can change appearance as often as the owner desires.

The hotel comprises many public areas, including Club Massiva, Café Ole and a Lido with diving facilities. Members can also create their own guest rooms, and furnish them with virtual items like widescreen TVs, designer sofas, and teleport machines.

As well as the face-to-face chat function, each member has a Habbo Console, which allows them to communicate with other Habbos with instant messages, SMS or email. Habbo Ltd's safety strategy ensures that all personal details such as email addresses and mobile phone numbers are kept secret.