Five stars, four stars, three, two, one…hotel star ratings are more than just status symbols. They shape guest perceptions, expectations, pricing and ultimately revenue. For example, a Harvard study of Yelp ratings found that a single-star jump in review rankings can lead to anywhere between a 5 and 9% increase in revenue.
For all of its importance, the star rating system can also seem impossible to grasp. So how does the hotel star rating system work, and how can hoteliers increase their stars? This guide goes over what to know about the system, how ratings are assigned and the actions you can take to boost your hotel’s ranking.
Key Takeaways:
The hotel star rating system is a classification framework that evaluates properties based on the on-site services, hotel amenities and guest experiences they offer. The system helps travelers differentiate between various property types, spanning every category from budget-friendly accommodations to luxury stays.
In the United States, star ratings range from 1-star (basic amenities) to 5-star (luxury experiences). In Europe, however, most hotels operate on a four-star system, while some global organizations have introduced 6- and 7-star classifications for ultra-luxury properties.
A key detail about the hotel star rating system is that all reviews are done objectively and by a third party. That means hotels aren’t able to review their own property or claim a rating without it being awarded to them.
In most cases, hotels earn their star ratings through inspections, audits, and adherence to predefined criteria. The evaluation process typically includes:
Given how much regulatory boards can vary from organization to organization (and country to country!) this process may look a little different for each one. However, this general framework is a great starting point for hoteliers interested in the process.
As you’ve likely noticed, there are many different organizations handing out stars! Depending on where you’re at in the world and what third-party platform you’re on, a hotel’s star rating can vary widely. To understand why this is, it’s helpful to look at the history of the system.
It may surprise you to learn that awarding a star rating to hotels originally didn’t start with the hospitality industry at all! Oil and gas company Mobil once appointed a team of inspectors across the United States and tasked them to rank hotels and restaurants. This publicity stunt turned out to be popular, and the system they created is still the basis for the rankings today.
The timeline of the United States Hotel Star System:
Today, star ratings in the United States are usually assigned by private organizations, including Forbes Travel Guide, AAA and Michelin who all use their own proprietary rating systems.
While the United States has the oldest known star rating system, other countries have created more regimented ways of letting travelers know what to expect from the properties they book.
For example, in Austrialia, star ratings began in 1950 through independent bodies, but then transitioned to become sanctioned by the country. In Europe, countries began by offering stars independently, but have been managed under a unified board since 2007. And in other countries like Switzerland, there are non-governmental organizations that act in an official capacity to handle their regulatory systems.
There is no official regulatory board that awards more than five stars to hotels, but with new, ultra-luxury stays popping up in Dubai, Seoul and beyond, these properties needed a way to differentiate their offerings even further.
While these six and seven-star hotels are self-appointed, they do go above and beyond with opulence and luxury, with Michelin-starred restaurants, multiple options for each amenity and staff trained not to meet your expectations but actively surpass them at every turn.
To achieve and maintain their star ratings, hotels must meet specific requirements pertaining to the guest experience. Here’s an overview of the general expectations for each level:
Guests know to expect limited services from a one-star hotel. While cleanliness and safety are still a must, there are no extra amenities or accommodations aside from the basics. A one-star hotel typically offers:
Basic accommodations
A two-star hotel offers slightly more in the way of services and amenities. Typically these properties will feature expanded front desk hours and may offer continental breakfast or coffee service. Guests can expect:
Modest accommodations
The main difference between a two- and three-star hotel is the amenities they offer. Three-star hotels typically have on-site pools, fitness facilities and possibly even dining options. Guest stays normally include:
Comfortable, well-appointed rooms with quality furnishings
Four-star accommodations are where properties start entering the luxury sector. Everything about the guest experience becomes a touch nicer, from linens to room art. A four-star hotel generally features:
High-end decor and furnishings
What makes a hotel five stars? They’re the pinnacle of luxury, and guests know to expect nothing less than excellence from every aspect of their stay. They include:
Luxury accommodations with premium furnishings and design
There are many things that coalesce to influence a hotel’s star rating, and all are equally important to the overall guest experience. This can include things like:
Room quality. The size, decor and general comfort levels of the guest rooms, as well as any notable smart features or tech upgrades.
Service excellence. Including the level of training your hotel staff receives, their general professionalism, response time and level of personalization.
Amenities offered. The pools, spas, childcare, concierge services, business centers and entertainment options your hotel offers.
Dining options. The quality and variety of dining options on-site or nearby.
Recreational facilities. Entertainment options such as tennis courts, horseback riding, golf courses and basketball courts.
Sustainability efforts. Eco-friendly practices such as reducing paper, using digital key cards or taking steps to reduce energy consumption.
While some factors, such as the size of your guest rooms or the breadth of your recreational facilities, may be difficult to change, there are other ways hoteliers can be proactive about increasing their star ratings.
Though hotel stars may be more complicated than they seem, they still remain a useful tool to help travelers understand what type of property they’re booking. As potential guests research properties, your star rating, your hotel’s Google reviews and your overall brand reputation play an important role in determining where they ultimately end up choosing to stay.
If you’re trying to capture the attention of more potential travelers, Canary has you covered. From increasing 3-rd party reviews to providing instant, 24/7 responses to guest inquiries, our solutions help you deliver the 5-star experiences modern guests expect. Book a demo today to learn more.
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