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Hotel Star Ratings Explained

RoomStay
Hotel Marketing
July 31, 2025
9 mins read


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A five-star hotel sounds fancy. A three-star stay sounds... decent. But what do hotel star ratings actually mean? And how do hotels even get those stars in the first place? If you've ever scratched your head wondering who hands out these stars, or how much they really matter, we're here to give you the insights.
In this guide, we’re breaking down the hotel star rating system from top to bottom. Whether you're running a boutique property or managing a sprawling resort, this will give you clarity on what the stars represent, how they’re awarded, and why they still have weight in today’s review-obsessed world.

What is the hotel star rating system?

The hotel star rating system is a standardised way of classifying hotels based on their quality, facilities, and service. The goal? To help travellers compare accommodation options at a glance. Ratings typically range from one to five stars, with each additional star indicating a higher level of comfort, amenities, and service.

But here's the catch: there's no single global system. Each country (and sometimes even different regions within a country) can have its own rating authority and criteria. Some are government-backed. Others come from independent organisations or travel bodies like AAA or Forbes.

There are also diamond ratings used in North America, and informal claims like "seven-star hotels," which sound impressive but aren’t officially recognised. More on that shortly.



What do hotel star ratings mean?

Here’s a simplified breakdown of what travellers can generally expect at each star level:


1 Star hotel rating

Basic, no-frills accommodation. Think shared bathrooms, limited or no front desk, vending machines instead of restaurants, and minimal service. Ideal for backpackers or travellers on a tight budget.

2 Star hotel rating

Clean, simple rooms with essential services. May offer private en-suite bathrooms, daily housekeeping, a basic reception desk, and free parking. Still limited on amenities, but comfortable enough for short stays.

3 Star hotel rating

Comfortable mid-range accommodation with expected conveniences: 24/7 reception, air conditioning, in-room tea and coffee, on-site dining or breakfast service, Wi-Fi, and possibly a small gym or business centre. Often branded hotels or quality independents.

4 Star hotel rating

Upscale stays with a noticeable lift in polish and services. Facilities often include full-service restaurants, bars, concierge, fitness centres, pools, event spaces, and premium bedding. Expect higher service standards and attention to detail.

5 Star hotel rating

Premium and luxurious. Multiple dining venues, 24-hour personalised service, valet parking, spas, turndown service, designer interiors, and meticulous attention to guest experience. Often includes extras like butler service, pillow menus, and airport transfers. Designed to impress.

There’s also the mythical 7-star hotel rating, famously self-declared by the Burj Al Arab in Dubai. Spoiler: it’s marketing, not an official rating. The highest recognised category worldwide remains five stars.

And what about diamond vs star hotel ratings? The US hotel star rating system is determined by, AAA and uses a Diamond Rating System, with one to five diamonds. It follows similar logic to the star system but focuses more on service consistency and guest experience.

How do hotels get star ratings?

This depends entirely on where the property is located and who’s doing the judging. Ratings can come from:

  • National tourism authorities (e.g. Star Ratings Australia)
  • Private companies (e.g. Forbes Travel Guide, AAA)
  • Regional or EU-wide hotel associations

Here are the general criteria for hotel star ratings:

  • Room size and comfort
  • Facilities (e.g. on-site restaurant, pool, gym)
  • Guest services (e.g. 24/7 reception, concierge, valet)
  • Cleanliness and maintenance
  • Staff qualifications and availability
  • Accessibility, parking, check-in/out experience
  • Technology (Wi-Fi, smart features, booking tools)

Each rating body has its own checklist, scorecard or point system. For example:

  • 4 star hotel rating requirements might include multilingual staff, full-service restaurant, and upgraded room design.
  • 5 star hotel rating requirements could require 24-hour concierge, spa, valet, luxury linens, and top-tier personalised service.

To apply, hotels often go through an inspection or audit process, followed by a score-based result.


Hotel star rating systems around the world

Let’s zoom out. What counts as five-star in Tokyo might barely scrape a four in Paris. Here’s how different star ratings for hotels stack up globally:

1

Australia

Ratings are handled by Star Ratings Australia. Their criteria are transparent, points-based, and focus on both quality and facilities.

2

USA

No official government system. Instead, private organisations like AAA (Diamond ratings) and Forbes Travel Guide handle it.

3

UK

Managed by the AA (Automobile Association) and VisitEngland, with set standards.

4

Europe

Many countries use the Hotelstars Union, a harmonised EU system with 270 criteria across 17 countries.

5

France

Strict government-regulated system with detailed criteria.

6

Spain & Italy

Use national tourism boards to define and inspect.

7

Singapore, Japan, Ireland

No universal standards. Ratings are often platform-led or defined by local hotel associations.

8

Dubai

The Department of Tourism and Commerce Marketing uses its own detailed classification system.

Why hotel star ratings still matter (and when they don’t)

In a world of TripAdvisor reviews and Google star scores, do the star ratings for hotels still carry weight?

Absolutely. They:


Help guests set expectations
Influence pricing and market positioning
Act as shorthand for quality in booking engines & OTAs

However, user reviews now play a massive role. A three-star hotel with 4.9 stars on Google might outperform a five-star property with underwhelming reviews. Star ratings can get you visibility, but guest experience still wins loyalty.

Some properties don’t pursue formal ratings at all. Boutique hotels or eco-lodges may avoid them to stay flexible or because the criteria don’t suit their experience. In these cases, brand reputation and guest satisfaction become the main currency.


What hotel star ratings mean for you as a hotelier

If you're running a 2-star motel or a luxury five-star resort, your rating affects:

  • Guest expectations
  • OTA filters and search visibility
  • Price benchmarking and competitive research
  • Direct booking confidence

A strong star rating builds trust, but delivering on that promise is what matters. A five-star badge with a two-star experience is worse than no badge at all.

Missing a rating altogether or sitting at the lower end could also mean losing out on filtered searches and first impressions.

How do I find out what my current hotel star rating is?

The easiest way to check your property's current hotel star rating is to look at your listing on official tourism or ratings body websites. In Australia, for example, Star Ratings Australia publishes verified ratings for accredited properties.

If you're listed on OTAs like Booking.com or Expedia, they may display a star rating, but this isn’t always based on official standards, it could be self-assessed or platform-determined. For a definitive answer, refer to your local tourism authority or industry regulator.

If you're unsure, contact them directly. You might need to undergo a reassessment or provide updated details about your facilities and services to get an accurate, official rating.



Can you boost your hotel rating?

In most cases, hotels can upgrade their rating, it just takes planning. To move from a three-star to a four-star hotel rating, or from four to five, you’ll need to:

  • Review your local rating body’s criteria
  • Invest in upgrades (e.g. facilities, furnishings, tech)
  • Improve staff service levels and response times
  • Document everything (some audits are evidence-based)

It’s not always about luxury. Even basics like 24/7 reception, secure Wi-Fi, or spotless cleaning scores can make a big difference.

Pro tip: Work on increasing direct bookings and use the revenue to reinvest in guest experience. Over time, this strengthens both your rating and your profitability.

So at the end of the day are hotel star ratings still relevant?

The short answer is yes — as long as you understand their context.

Guests still use star ratings to filter options. OTAs highlight them. Tourism boards reference them. But your actual guest experience, reviews, and brand positioning are what drive return bookings.

You might be aiming for a higher tier or confidently holding your current rating, either way, make the most of it. Highlight your strengths, exceed expectations, and use every available tool to win and retain bookings.


Want more bookings, no matter how many stars you’ve got?

Roomstay helps you stand out from the crowd. With tools to optimise direct bookings, showcase your strengths, and streamline guest journeys, we help hoteliers shine—stars or no stars.

Book a free Roomstay demo and start turning browsers into bookings today.

RoomStay
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