You are correct about Present Perfect Continuous: it's used for an action which started sometime in the past and still continues:

I've been living in the hotel means I am still living in the hotel.

As for Present Perfect, it's used to describe an action which occurred (started and ended) at an unknown point in the past:

I've lived in the hotel means I lived there sometime in the past (we don't know when). This sentence does not provide information as to what is happening now (I may or may not be living there now, but we need another sentence to know this).

Notice that while this can help improve your reading skills, which will assist you in the GMAT in general, the difference between these two specific tenses is hardly ever tested in Sentence Correction questions, which more commonly compare one of them with the other tenses.

Hi Amit,

Thanks for the reply. Although, the present perfect and present perfect continuous differences are not tested in GMAT, I have still some doubt. The below image is from a good renowed source. The below rounded sentences(in the image) kept me in dilemma.
No offence either on the source of the image or on your explanation. I really want to be clear about the concepts of present perfect tense and their usage.

If you notice the image, it says that the action is continued to present time as well, contrary to your explanation, which again kept me in ambiguity. To convey the same meaning(I lived in the hotel in past and not sure where I am living now) I can use simple past instead of present perfect. Do I really need present perfect....
So I am still confused whether present perfect tense be used for the action that is continued to present.



Regards,
Kiran.

The misconception that Present Perfect sentences are always still true in the present can be easily refuted with the following example:

I have been to Paris three times this year.

This sentence does not necessarily mean I am in Paris right now. The action(s) of being to Paris have concluded, and I may or may not be in Paris at the moment.

Let's put things in order:

Past Simple is for actions which occurred at a definite time in the past: I saw John yesterday. I was in Paris in 1807.

Present Perfect is for:
1. actions occurring at an unknown time in the past: I've already been to Paris.
2. actions that began sometime in the past and may or may not be still relevant in the present: John and I have been friends since high-school (but recently we lost touch).

In other words the difference between Past Simple and Present Perfect is not about whether the action continues in the present, but whether its time is definite or unknown.

@Amit Moshe : Thank you, that is wonderful explanation. Clears all doubts.

Could you share your points for past perfect as well ? One usage is when two past events are sequentially discussed. But sometimes I have seen the usage of past perfect in one sentence ? Could you suggest how to figure that out please.