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Hotel Star Rating System: Everything You Need to Know

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Updated : Feb 9, 2025

The hotel star rating system serves as a universal benchmark for travelers, helping them quickly assess the quality, service, and amenities a hotel offers. Beyond its impact on consumer choice, the star rating is an important tool for hoteliers to position their property in the marketplace, attract the right guests, and optimize revenue. 

In this blog post, we’ll discuss the hotel star rating system.

What is the Hotel Star Rating System?

The hotel star rating system categorizes hotels based on their quality of services, facilities, and guest experience. Generally, it ranks hotels on a scale of one to five stars—with one-star hotels offering basic accommodations and five-star hotels delivering top-tier luxury and personalized service. 

The more stars a hotel has, the higher its standard of excellence.

Hotel Star Rating System
Hotel Star Rating System

Key Notes:

  • Variations: Different countries may have their standards for awarding stars.
  • Subjectivity: Private platforms like TripAdvisor or Google often show user ratings alongside star ratings, blending professional evaluations with guest feedback.
  • Beyond five stars: Some ultra-luxury hotels market themselves as six or seven-star properties, but these are marketing terms, not official classifications.

Why Is the Star Rating System Important for Small Hotels?

Small hotels often depend on their star rating to stand out in a crowded marketplace. Here’s why:

  • Builds credibility: Many travelers equate a hotel’s star rating with a guarantee of quality and service. This makes it a vital marketing tool for smaller properties looking to compete against larger chains.
  • Boosts visibility: Many online travel agencies (OTAs) and booking platforms allow users to filter search results by star rating hotel system. Hotels without an official rating may lose out on visibility, especially with guests who rely on star ratings to make decisions. 
  • Justifies room rates: A higher star rating can validate premium pricing, allowing smaller hotels to increase revenue without compromising occupancy. When guests see a well-rated hotel, they are often willing to pay more for the assurance of a quality experience.
  • Competitive advantage: A highly rated small hotel may be able to compete with larger, well-known brands by offering a unique, personalized guest experience paired with high standards.

How Does the Hotel Star Rating System Work? 

Star ratings can come from both official and unofficial sources, and the criteria for awarding these ratings vary based on the country. Here’s a look at how different countries approach their hotel star ratings:

United States

The U.S. does not have a government-regulated hotel rating system. Instead, ratings are provided by independent organizations like AAA and Forbes Travel Guide.

AAA uses a Diamond Rating System (1–5 diamonds), evaluating hotels based on comfort, cleanliness, and hospitality. Forbes Travel Guide focuses on luxury properties and uses a meticulous inspection process, including mystery visits, to award stars.

Italy

The government assigns hotel star ratings in Italy based on room size, availability of dining options, and services like concierge or multilingual staff.

However, these ratings are regulated at the regional level, leading to variations in standards. For instance, Tuscany may emphasize rustic charm and heritage, while Lombardy focuses on modern luxury and business amenities.

France

The hotel star rating system in France is managed by Atout France, the official national tourism board. Hotels are required to undergo an audit every five years to retain their rating. 

Furthermore, the Palace designation is an exclusive title given to a small group of luxury hotels that exceed the five-star rating in terms of luxury, service, and overall experience. Currently, it’s awarded to 31 hotels in France.

Australia

Australia’s Star rating system is managed by Star Ratings Australia, owned by the Australian Auto Clubs. It determines ratings based on over 200 criteria, such as cleanliness, quality, and facilities. Plus, these ratings are independently verified to ensure consistency and trust.

Accreditation must be renewed periodically, maintaining high standards across the hospitality industry.

Ways Hoteliers Can Boost Hotel Rankings

For hoteliers aiming to improve their star rating or online reputation, there are actionable strategies you can implement:

1. Use Dynamic Pricing 

Dynamic pricing automatically adjusts your room rates based on demand, local events, or seasonality. 

You can use tools like PriceLabs to implement this approach. During peak seasons, it increases prices to generate more revenue and lower rates during slow times to maintain occupancy levels. 

PriceLabs Dynamic Pricing
PriceLabs Dynamic Pricing Tool
Build intelligent, data-driven revenue strategies with the best Dynamic Pricing tool to save time and earn more.

Build intelligent, data-driven revenue strategies with the best Dynamic Pricing tool to save time and earn more.

Enhance your listing performance with actionable insights based on local trends and events. To give you the best possible daily rates, we study millions of data points to identify local trends, seasonality, and day of the week.

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When guests feel they’re getting good value, they’re more likely to leave positive reviews. These reviews can improve your online reputation and potentially lead to higher star ratings.

2. Upgrade Amenities

Replace basic toiletries with high-quality brands and provide free Wi-Fi and extra amenities like USB charging ports in rooms. Larger investments, such as adding a fitness center or upgrading your lobby with modern furniture, could significantly boost your hotel’s appeal and possibly earn you an additional star.

3. Prioritize Cleanliness and Maintenance

Schedule regular cleaning of rooms and common areas, and make sure all rooms are equipped with fresh linens, towels, and functioning appliances. 

If a guest notices minor issues like a leaky faucet or a broken light fixture, addressing these problems immediately can help prevent negative reviews and complaints.

Prioritize cleanliness and maintenance for hotel star rating
Prioritize Cleanliness and Maintenance

4. Encourage Guest Feedback

Request guests to leave reviews by providing reminders in-room or via email after check-out. You can also include a QR code on the room key or at the reception desk that directs guests to your hotel’s review page. 

Responding to both positive and negative reviews professionally shows you value feedback. 

5. Leverage Technology

Offering features such as mobile check-ins or the ability to request extra amenities via an app can significantly enhance guest satisfaction. 

For example, the Marriott Bonvoy app allows guests to check in and check out from their phones, request housekeeping services, or even make restaurant reservations—all from the comfort of their rooms.

6. Regular Upgrades

If your hotel’s furniture is outdated, a small investment in new, stylish furniture can improve the look and feel of your rooms. Upgrading to smart TVs or providing high-speed internet can also meet guests’ increasing expectations, especially in business-centric hotels.

Transform Your Hotel’s Appeal by Boosting Its Star Rating 

For hoteliers, the star rating system is much more than a measure of luxury; it’s a vital tool for increasing bookings, justifying pricing, and enhancing your hotel’s reputation. 

Whether you manage a small boutique property or an independent hotel, investing in guest experience, amenities, and service quality is key to boosting your rating. Focusing on online reviews and consistently maintaining high standards can further increase your visibility and credibility on major booking platforms.

Dynamic pricing in Airbnb refers to the practice of adjusting rental rates in real time based on various factors such as demand, seasonality, local events, and market conditions. This approach allows hosts to optimize their earnings by automatically increasing or decreasing prices to match supply and demand fluctuations. By utilizing data and algorithms, dynamic pricing aims to find the optimal balance between attracting guests and maximizing revenue, ensuring that prices reflect the current market dynamics.
To implement dynamic pricing for vacation rentals, collect relevant data, identify key factors, set pricing rules, use dynamic pricing software, monitor performance, and adjust as needed to optimize revenue.
The aim of dynamic pricing is to optimize revenue and occupancy rates. It is done by adjusting prices in real time based on factors such as demand, market conditions, competition, and other variables. Dynamic pricing softwares seeks to find the optimal balance between attracting guests and maximizing profitability by dynamically setting prices that reflect current market dynamics. The goal is to capture the highest possible value for each booking while ensuring competitiveness in the market.
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About PriceLabs

PriceLabs is a powerful revenue management and dynamic pricing platform designed for hospitality accommodations, including hotels, aparthotels, vacation rentals, RVs, and campgrounds.

It helps maximize revenue by recommending room rates based on internal occupancy, competitor pricing patterns, and overall market data from Booking.com and other OTAs.

Users save valuable time with bulk actions and flexible automation rules. Integrating seamlessly with over 150 Property Management Systems (PMSs), as well as major platforms like Airbnb and Vrbo; PriceLabs helps users update their room prices across all their booking channels multiple times a day.

Since its founding in 2014, PriceLabs has grown to price over 500,000 units across 150+ countries and is available in six languages, making it a globally trusted tool for maximizing revenue and efficiency in the hospitality industry.

Get started with PriceLabs

Want to learn what PriceLabs can do for you? See for yourself with a free trial

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