Understanding Hotel Star Ratings and Their Significance

Hotel rating systems are prevalent worldwide, yet even seasoned travelers may not realize there's no universal authority overseeing hotel ratings and inspections globally. As hotel options grow—over 1,200 brands identified by U.S.-based Smith Travel Research—navigating these systems becomes more complex. New competitors, like the Michelin guide, are entering the scene with plans for their own hotel ratings. The debate over the existence of 'seven-star hotels' has sparked further controversy.

With numerous hotel rating systems available, discerning the potential experience at a hotel can be daunting. To provide clarity, we've outlined the current systems and consulted travel experts to help explain their implications.

The History of Hotel Star Ratings

The star rating system originated in the 1950s through a travel guide funded by what is now Exxon Mobil. It quickly gained popularity, prompting the establishment of a dedicated team of inspectors who traveled across the United States evaluating hotels and assigning rankings accordingly.

Bjorn Hanson, a former lecturer at NYU and ex-global lead for PricewaterhouseCoopers’ hospitality division, notes that the hospitality industry was ready for rankings after World War II, as new chains like Hilton and Holiday Inn began promoting their brands as a mark of quality.

“It’s a reflection of the industry's nature. It provided a means to categorize hotels,” he explains, as distinguishing between hotels became increasingly challenging, especially with the rise of midrange and motel-style accommodations. There was also less focus on luxury options at the time. “In the late 1950s, I doubt there were many five-star hotels,” he adds.

How Star Rating Systems Differ by Country

The HotelStars initiative is the closest the industry has come to standardization, operating for 15 years across various countries, primarily within the European Union. However, most hotel rating systems today are tailored to specific countries or regions; in Europe, some are overseen by government bodies such as tourism boards.

In the United Kingdom, hotel ratings have been standardized by the government since 2006, with inspections conducted by local agencies akin to AAA and tourism boards. As an opt-in system with costs for inspections, this means some hotels may remain unrated. France’s system, managed by its tourism board, has precise criteria for each category: for instance, a double bedroom must be at least 97 square feet for one-star status and over 258 square feet for five-star.

In Italy, hotels earn stars based on strict guidelines; for example, a five-star hotel must feature a meeting room. However, individual regions have unique criteria, complicating comparisons between a three-star hotel in Tuscany and one in the Veneto.

In the U.S., the rating landscape is less clear-cut than in Europe, lacking government regulation. Competing systems like AAA and Forbes Travel Guide can be inconsistent with one another and even within their own frameworks. AAA recently replaced its traditional one- and two-diamond ratings with a simpler 'approved' stamp to reduce stigma for more basic accommodations. Since U.S. ratings are unregulated, hotels can self-assign star ratings on their websites without third-party verification—so if you don’t see an endorsement from AAA or Forbes, proceed with caution.

In North Africa, the situation is equally confusing; Tunisia has its own domestic rating system, which was supposed to be upgraded and implemented in 2021, yet three years later, little progress has been made. The Tourism Grading Council of South Africa (TGCSA) oversees rankings there, but it's an opt-in system, resulting in many properties going unclassified.

In China, the rating system is managed by the government through the tourism board (CNTA), employing a one- to five-star scale. However, the criteria for each star level differ from the luxury standards found in other regions; for example, having a fleet of transit vans to transport guests to the city center is a hallmark of five-star status.

How Travel Experts Interpret Hotel Rating Systems

Travel experts often develop their own methodologies for evaluating star ratings, favoring specific organizations. Paul Tumpowsky, founder of Skylark, a luxury travel agency, states that he only trusts the Forbes Travel Guide. “They charge for inspections,” Tumpowsky explains, “but it's a thorough process, and inspectors receive training alongside their ratings. When you’re mystery-shopped, you not only receive a rating but also constructive feedback on areas for improvement. This has become extremely valuable.” Tumpowsky also seeks out hotels that are members of recognized industry associations, such as Leading Hotels of the World, which includes over 60 of the finest independent properties, or Virtuoso, which only accepts hotels that meet rigorous entry criteria focused on aspects like service and sales performance.

These paid memberships are exclusive to hotels that meet specific standards; while they have benchmarks akin to star ratings, there’s also a meticulous curation process that considers ambiance and aesthetics alongside hard data. “It’s much more binary than the star system,” Tumpowsky explains about the all-or-nothing approach, “but this aligns with the type of hotel that meets my clients’ needs, such as room service availability. Ultimately, a hotel in this program aims to attract top American travelers and their advisors, which makes perfect sense.”

Hotel rating systems benefit not just guests—they also motivate hotels to enhance their offerings.

Despite variations in how stars are awarded across different countries and organizations, they play a crucial role in a hotel’s financial success. The fear of losing ratings pushes hotels to take significant measures, such as hiring inspection firm Coyle Hospitality. Operating like a secret shopper, Coyle delivers quick response reports highlighting a property’s strengths and weaknesses. Jeff Gurtman, the managing director, notes that his team is often engaged for trial evaluations, using the same checklist as organizations like AAA. “They focus on the details, such as how newspapers are presented or how requests are handled—if I call housekeeping, I should be able to order my Caesar salad without being redirected to room service,” he elaborates.

The most significant challenges often arise when a hotel hands over control of its food and beverage services to an external operator, such as a celebrity chef. “They hire us to provide them with the leverage needed to approach their restaurant partner and say, ‘You need to improve because you’re affecting our reputation,’” he explained. In another instance, a hotel chain engaged Gurtman’s team for a different ratings-related purpose. “They weren’t interested in measuring standards or quality at all. What they wanted was to see if their staff could recognize who the inspector was; sometimes they could, and sometimes they couldn’t,” he chuckled, adding, “it’s like cramming for a test rather than actually learning the material.”