Hotel Star Rating System: Comprehensive Guide for Hoteliers

You might be providing the best service to guests, but have you ever wondered why they leave negative reviews or ratings on third-party sites?

You claim to be a 4-star luxury hotel although you provide the same level of comfort and convenience to guests just like a 5-star luxury paradise.

Isn't it?

Well, the hotel rating criteria sound confusing at first sight because different countries have different organizations that rate the hotel's quality. 

The question here is how do these ratings are determined.

Is the hotel with fancy amenities such as a restaurant, pool, and Jacuzzi is rated as 5-star, or a hotel that provides the best guest service is credited with 5-star?

What are those standards that differentiate a premium suite from basic accommodation?

Let’s dive right into this blog to figure out all this... 

What is the Hotel Star Rating System?

The hotel star rating system is a metric that determines how one hotel is different from another based on the quality, amenities it provides and services it offers.

Every country’s tourism board gives star ratings to hotels and classifies them how a one-star hotel is different from a 5-star hotel. 

Other countries might use different rating methods such as diamonds or crowns for rating hotels as top tier or low tier.

Generally, guests who book a stay in hotels share their feedback in the form of reviews or ratings. These ratings are based on how much level of comfort one hotel provides for guests, the safety and hygiene standards it follows, and how exceptional its services are.

A higher rating signifies that a hotel provides more warmth and a pleasant stay experience to guests. It gives a luxury feel and touch to guests. 

While a hotel with a low rating signifies that it fulfills necessities, it provides a space to sleep and that’s it. No more extras!

These hotel star reviews act as powerful social proof for potential guests who are looking to seek great accommodation.

The rating generally starts from 1 star and ends with 5.

In a nutshell, a higher rating states the hotel is a luxurious suite while a lower rating signifies that the hotel is a standard hotel or comfort hotel.

How Are Star Ratings Determined?

The need for hotel star ratings is a voluntary process. Various hotel owners apply for star ratings to meet the expectations of modern guests. They apply for a star certification system from the tourism board and the authority might differ from country to country. 

For Instance – In Australia, Star Ratings Australia gives ratings to hotels. In Europe, the European Hotel Stars Union is responsible for providing grades to hotels, cafes, and all restaurants.

In North America, the American Automobile Association (AAA) uses a diamond rating system to rank hotels from one diamond to five diamonds. 

In India, the Hotel and Restaurant Accreditation Committee under the Ministry of Tourism ranks the hotel by assessing various factors such as - 

• Whether it provides necessary amenities or not? 
• Is it value for money? 
• Does it provide high-quality services? 
• Is it in an attractive location? 
• Room size and the quality of furnishings hotel has 
• Whether there is Wi-Fi or entertainment options? 
• How well do the front desk or housekeeping staff assist the guests? 
• Do they have a variety of food and beverage options? 
• Appearance of the hotel and how well it’s accessible to guests 
• Do they follow sustainable practices or not? 
• What extra features or amenities do they provide? 

The hoteliers need to request the authority or rating agency to audit their property.  They stay on your property for a few days and keep the checklist handy with themselves. 

They will assess the property and give them a rating (1 star to 5 stars) based on whether the hotel meets the defined benchmark or not. 

If they find any loopholes or service gaps, they will ask the hotel owner to work on them. 

If the property fails to meet the criteria and fix the issues, the concerned authority will either revoke their license or impose a penalty on them.

What are the different types of hotel star ratings?

Let’s understand the meaning of each rating-

1. 1-star hotel

One-star hotels don’t offer you more amenities. It can provide basic accommodation to live in such as a room with essentials (bed and bathroom), nothing more than that.

These hotels are suited for budget-friendly travelers who are seeking economical options with a pinch of basic comfort. 

They do not offer additional services and are viable for travelers having modest needs. 

2. 2-star hotels

These hotels have slightly higher ratings than one-star hotels. These hotels are the best fit for guests looking for a better yet affordable stay option. 

They have beds, bathrooms, and rooms equipped with television.

These hotels are the best fit for travelers looking for shorter stays or business trips.

Generally, these hotels are equipped with front desks. Guests can request other services which are generally fee-based.

3. 3-star hotels

These hotels blend high-level comfort with a small pinch of luxury. They are equipped with a range of amenities that enhance the stay experience.

These include spacious rooms, restaurants, a gym, a swimming pool, an on-site restaurant, air-conditioned rooms, conference rooms, meeting facilities etc. 

These properties provide splendid experiences for guests without leaving deep holes in their pockets.

4. 4-star hotels

4-star hotels mark the beginning of luxury. Guests can live their lavish lifestyle, and the rooms are well decorated. 

These luxury suites provide high-quality amenities with a maximum level of comfort. 

The accommodation is packed with huge beds, comfortable pillows, fancy soaps and towels, high-quality decor, saloons, and on-site gyms with an exceptional quality of service available. 

5. 5-star hotel

These hotels are considered the most luxurious suites per hotel star rating criteria with king-sized bedrooms, large bathrooms with an in-built jacuzzi, a breathtaking swimming pool, a fitness center, fine dining restaurant. 

These properties provide top-notch guest experiences and exclusive features that leave a lasting impression on guests. 

Guests must pay a premium price for services to get such a luxury-like experience. They just name the service, and hoteliers make it available to them. 

The Impact of Star Ratings on Your Hotel’s Reputation

A hotel with a higher star rating has a better reputation than the ones without a rating. That’s why travelers prefer to choose hotels that have good social proof. 

While the one with lower ratings pushes the travelers to choose another hotel. 

Of course, guests will look at various factors before making a stay at a specific hotel such as location, size of the hotel, what facilities it provides, their budget, etc. 

Ultimately, hotel star ratings are something that a guest must consider. 

For them, a higher rating represents that hotels provide best-in-class guest experience along with top-notch amenities.

While the ones that overlook guest needs are given low ratings. 

These star ratings shape the consumer’s decision-making process as these are considered trustworthy proof. A hotel with a higher star rating gets more credibility in the eyes of guests.  

A hotel rating determines the hotel’s worth, and they can think of what level of comfort and amenities they expect. 

After booking a stay, they won’t be surprised to see if the hotel doesn’t meet their bare minimum expectations.

These star ratings impact the profitability of hotels. If a hotel is ranked as a 5-star hotel, then it can charge premium prices for its services and increase revenue. 

Thus, the hotel star rating system is a win for hoteliers and guests. 

Guests can make better decisions before booking a stay and hotels can fine-tune their strategies based on how they are rated.

Strategies to Improve Your Hotel’s Star Rating

Well, you might understand how hotels are rated. You must be wondering how you can increase your star ratings. 

You can improve the ratings of your property by following the things mentioned below-

1. Focus more on guest experience

The star ratings that hotels receive from Burj Al Arab in Dubai to Titanic Mardan place in Turkey offer world-class experiences to guests. 

These hotels stand out from the rest as they offer a pinch of luxury touch that makes the life of guests easy and peasy. 

But What makes them different? 

The high-end amenities, the top-rated spa, the wide entertainment options, and the individualized service it offers make the guest feel WOW.

The design elements they have and how they articulate decor add beauty to the place.

2. Put more emphasis on cleanliness

Higher star ratings aren’t confined to how many amenities each hotel has, rather cleanliness is another important benchmark that should be taken care of. 

Once the guest arrives, they expect the rooms to be cleaned. It's a bare minimum requirement and low-star hotels should at least have this.  

If the hotel isn’t maintaining basic cleanliness, guests won’t choose you and leave negative reviews on your website and other third-party sites.

3. Invest in technology

Another way to increase your hotel star rating is by investing in technology and integrating smart room technology features. 

A mobile app for check-in and check-out, sending requests, etc. enhances the guest experience.

Integration of hotel technology solutions provides convenience to guests and helps hoteliers provide personalized services.

By getting guest insights, they can fine-tune marketing strategies.  

Additionally, you can offer an advanced booking system to streamline your hotel operations, ease the check-in and check-out process, and get more control over direct bookings. 

4. Provide more food and beverage options

Make sure to include a vast range of food and beverage options for guests. 

The hotels can increase their star rating by offering customizable meals such as allergy-friendly or gluten-free products.

The products your restaurant chef uses should be naturally sourced. 

Provide a fine dining experience such as a poolside bar or rooftop restaurant so they can get a cosy feel, and enjoy snacks, beverages, and light meals. 

Final Notes...

From this guide, you understand that hotel star ratings aren’t a cakewalk, they vary as per the changing expectations of travelers and rapid technological advancements. 

Star ratings shape the decision-making of guests as modern travelers prefer choosing hotels based on low or high rankings. 

Generally, business travelers or tourists who demand a cozy and luxurious feel go to 5-star or 7-star hotels.

While budget-friendly travelers go with hotels having lower star ratings.  

So, do star ratings matter for hoteliers? 

CNBC interviewed the CEO of a travel technology company named Travel Planner. The CEO believed today’s guests consider rating as a top criterion before booking a stay. 

These ratings define whether the hotel meets their expectations or not. It highlights whether the service quality is worth value for money.  

Those reviews and ratings that previous guests shared on third-party sites or socials differentiate a good hotel from a great hotel. 

But there’s not a single factor that makes one hotel ordinary and names the other hotel as luxurious suites. 

Many factors affect the hotel star rating system that has been discussed above in the blog. 

Hence, hoteliers need to focus on guest experience because guests always do their homework before selecting a hotel.