Hotel & Travel Trends

Hotel Rating System Explained

17 June 2025

In today’s competitive hospitality industry, hotel ratings play a crucial role in shaping guest expectations and influencing booking decisions. The hotel star rating system is designed to provide a standardized way to assess a hotel’s quality, amenities, and services, ultimately helping travelers make informed choices. For hoteliers, understanding these classifications is essential—not only to meet industry standards, but also to enhance their offerings and attract more guests.

But what exactly determines a hotel’s star rating, and how can you optimize your property to achieve a higher classification? In this guide, we’ll break down the rating criteria, explore key upgrades that can influence these criteria, and show how the right amenities, such as premium in-room products, can elevate the guest experience. Continue reading to learn how your hotel can stand out in the competitive market.

What Are Hotel Star Ratings?

Hotel star ratings are a globally recognized system used to evaluate and classify hotels based on their quality, amenities, and overall guest experience. Hotel star ratings are also a targeted selling point, highlighting the features and amenities that set hotels apart from one another. These ratings, typically ranging from one to five stars, help travelers compare accommodations and set expectations before booking. 

A one-star hotel, for example, offers basic accommodations, while a five-star hotel provides luxury services, fine dining, and high-end facilities. Some destinations even recognize six- or seven-star hotels, though these are unofficial designations used for ultra-luxury properties.

The criteria for hotel star ratings typically consider factors such as service quality, cleanliness, room features, and available amenities, ensuring a clear distinction between different levels of accommodation. 

Higher-rated hotels often offer more personalized services, upgraded facilities, and enhanced guest experiences. Beyond the official ratings, modern travelers also rely on guest reviews and visual impressions, making it essential for hotels to maintain high standards in both service and presentation to appeal to guests looking for the perfect stay.

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How Are Hotel Stars Determined?

Hotel ratings are symbolized by stars (typically ranging from 1 to 5). This internationally recognized rating system is used to indicate the level of quality and customer service a hotel provides, but how are hotel stars determined? 

While some countries have government-regulated star ratings, others rely on independent associations or online review platforms to assess hotel standards. The criteria for these ratings vary depending on the country and rating organization, such as AAA or Hotelstars Union

Generally speaking, these organizations assess factors like room size, cleanliness, service standards, dining options, technology, and guest facilities. Additional guest services may also apply to the rating, including spas, concierge, or co-working spaces and meeting venues. 

The higher the rating, the more extensive the range of services and luxuries, making it a key factor for hoteliers looking to attract discerning guests and enhance their property’s reputation.

Who Gives Star Ratings to Hotels?

Hotel star ratings are awarded by various organizations worldwide, each using their own evaluation criteria to assess quality, comfort, and service. In the United States, AAA assigns “hotel stars” using a Diamond system, with hotels rated from One to Five Diamonds based on their level of luxury and service. 

Another prominent rating organization is the Forbes Travel Guide, known for its rigorous and anonymous inspections. Forbes travel guide evaluates hotels on more than 900 objective standards, focusing on service excellence and overall guest experience.

In Europe, the Hotelstars Union (HSU) provides a standardized hotel classification system across multiple countries, ensuring consistency in ratings and helping travelers understand what to expect. The Michelin Guide, though originally focused on fine dining, also recognizes outstanding hotels for their exceptional accommodations and guest experiences. 

Another well-known classification comes from Relais & Châteaux, a global association that evaluates boutique and luxury properties based on their commitment to high hospitality standards.

In addition to these official organizations, online review platforms such as Booking.com, TripAdvisor, and Google Reviews also play an increasingly significant role in shaping consumer perceptions and offering guest-driven ratings that complement official star classifications.

For hoteliers, securing a strong star rating is essential for credibility and market positioning. By focusing on key rating criteria—including service quality, cleanliness, amenities, and guest experience—hotels can enhance their reputation and appeal to a broader audience.

Overview of Hotel Classifications and Criteria

Different rating systems evaluate hotels based on varying factors like amenities, service level, cleanliness, and guest experience. These criteria differ by region and the classification organization. This section provides an overview of the common definition for each star in the hotel star rating system and some key factors used to determine these classifications.

⭐ 1 Star Hotel

A 1 star hotel offers the basic accommodation with just the bare essentials. You will find minimal services, often catering to budget-conscious travelers with limited amenities. In some cases, a 1 star hotel rating is an indication of poor services, unfavorable amenities, or a lack of cleanliness. 

⭐⭐ 2 Star Hotel

A 2 star hotel is one step above the minimum, offering modest comfort with private bathrooms, 24-hour reception, and simple in-room conveniences like a TV and phone. These hotels provide all the necessities at an affordable rate.

⭐⭐⭐ 3 Star Hotel

A 3 star hotel, also known as a standard hotel or mid-range accommodation, provides enhanced comfort, featuring on-site dining, guest facilities such as a conference room or fitness center, as well as rooms with improved furnishings and amenities.

⭐⭐⭐⭐ 4 Star Hotel

A 4 star hotel takes the guest experience to the next level, offering upscale accommodations with high-end amenities, fine dining, concierge services, stylish designs, and premium guest facilities.

⭐⭐⭐⭐⭐ 5 Star Hotel

A 5 star hotel represents luxury and excellence, featuring exceptional service, premium suites, personalized attention, exclusive facilities, and top-tier dining and wellness experiences.

Advantages of the Hotel Star Rating System

The hotel star rating system benefits both travelers and hoteliers by establishing clear expectations and quality benchmarks. Based on these ratings, guests can easily identify hotels that match their preferences, whether they seek budget-friendly stays or luxury experiences. 

For hotels, an official star classification will have a significant influence on their market positioning and help attract the right travelers. The hotel star rating system also encourages service excellence and facility or amenity improvements, as properties must meet specific criteria to maintain or achieve a higher rating. 

By maintaining high standards, hotels can enhance guest satisfaction, build credibility, and justify premium pricing, ultimately driving business growth. As an internationally recognized standard, this system simplifies decision-making and builds trust in the hospitality industry.

How to Increase Your Hotel’s Star Rating

There are many ways to improve a hotel’s offerings and potentially achieve a higher star rating. For hoteliers, understanding and meeting classification criteria for hotel star ratings is crucial. Increasing your hotel rating not only helps maintain a competitive edge, but also better positions the hotel as a desirable choice for travelers. 

For example, by investing in high-quality, sustainable amenities and modern solutions like ADA Atelier, ADA Refillution, and our exclusive dispenser solution: SmartCare, hoteliers can raise the bar in excellence, sustainability, and hygiene. 

Increasing your hotel’s star rating requires attention to service quality, cleanliness, and every aspect of the guest experience. Upgrading amenities, optimizing in-room conveniences, and maintaining high hygiene standards can make a significant impact. Thoughtful details, such as premium toiletries, seamless technology, and exceptional hospitality services, will help create a more rewarding and memorable stay.

Does any 7-star hotel exist?

While 7-star hotels are a marketing concept rather than an official classification, they represent the highest level of luxury and exclusivity available worldwide. For travelers, this means exceptional service, unique experiences, and unparalleled comfort, even if the official rating remains at 5 stars. For example, the Burj Al Arab hotel (Dubai, UAE), often cited as the world’s first “7-star hotel,” is a sail-shaped landmark offering personal butlers, chauffeur-driven Rolls-Royces, and a private helipad. Similarly, the Mark Hotel in New York City is officially a 5-star hotel; however, its Penthouse Suite (largest in the U.S.) and celebrity clientele earn it an ultra-luxury reputation.

What does AAA diamond mean?

The AAA Diamond Rating is a 1 to 5 Diamond classification system used to evaluate hotels based on service, hospitality, cleanliness, and overall guest experience. Unlike self-reported ratings, AAA sends professional inspectors to assess properties anonymously, ensuring consistency and quality. A One Diamond hotel offers simple, budget-friendly accommodations, while a Five Diamond property represents top-tier luxury, exceptional service, and state-of-the-art amenities. The AAA Diamond system is widely recognized in North America, helping travelers identify hotels that meet their hospitality and service expectations.

What is a 0-star hotel?

A 0-star hotel refers to accommodations that don’t meet the minimum requirements for formal star ratings. These are often basic lodgings with minimal services, such as guesthouses, hostels, or budget hotels, offering essentials like a bed and a bathroom. They may lack amenities like daily housekeeping, in-room TVs, or 24-hour reception. Reviews and guest feedback are essential for assessing quality, as these hotels cater primarily to budget travelers or those seeking unconventional stays.

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