Dubai advisory group calls for revamp...

Gulf hotels would benefit from six- and seven-star ratings, says consultancy

Hotel ratings across the globe are at risk of becoming outdated, according to a Dubai-based real estate advisory group and property consultants.

Property consultancy Cavendish Maxwell is calling for hospitality industry stakeholders to join forces and explore a new approach to rating methodology. It is calling for a “clear, trusted system that allows travellers to make more informed decisions when booking accommodation”.

According to the company’s new report, entitled ‘Is the system of hotel rating still fit for purpose?’, standards for ratings in the Gulf are “now becoming so out of kilter with those in Europe and the USA that international comparisons are becoming impossible.”

Meanwhile, the report says Saudi Arabia’s unprecedented investment in tourism further highlights the lack of appropriate, comparable international rating systems as the country opens new establishments that are ahead of traditional five-star hotels elsewhere in the world.

Gergely Balint

Gergely Balint, Associate Partner, Commercial Valuation at Cavendish Maxwell, said: “A five-star hotel in Dubai and other parts of the Middle East is not equivalent to a hotel with the same rating in other global regions, particularly when it comes to brand new properties.

“The same can apply to four- and three-star establishments, which offer varying levels of service and amenities depending on their location. Dubai’s Burj Al Arab was unofficially labelled the world’s first seven-star hotel when it opened 30 years ago: perhaps an early indication of the need to overhaul existing rating systems."

Hotel ratings were originally introduced to help guests understand the quality and facilities at their chosen destination and later became important valuation tools for hotel brands and properties.

Ratings differ across the globe: Europe uses stars while the USA has diamonds. With tourism becoming more globalised, international rating systems – such as Booking.com’s stars and the Michelin Guide’s keys – have emerged, but even these assess different criteria within their rating methodology.

Luxury hotels in the Gulf could benefit from a shift towards a rating system with six or seven stars.

Balint added: “Clearly, it is time for hospitality industry stakeholders to explore a new approach to hotel ratings. As a temporary first step, independent organisations’ publishing of ‘equivalent’ ratings between jurisdictions, rather like ‘exchange rates’, would be a welcome move.

“Longer term, existing international rating systems could gradually replace national ratings, bringing in a uniform set of criteria that all stakeholders would trust and understand. Changes will take time – and require challenging decisions that will mean winners and losers.”

For more information, visit cavendishmaxwell.com/insights/opinion/is-the-system-of-hotel-rating-still-fit-for-purpose

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