aaa tourism star rating scheme

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What is Star Ratings?

What do the Star Ratings mean?

Star Ratings stand for independently reviewed quality standards and are easily defined and identified:

In addition to receiving increased credibility, competitiveness and reputation, internationally recognised Star Ratings accredited properties enjoy a range of valuable benefits.

License to use the registered Star Ratings trademarked symbols, which properties can use on their own marketing channels.
Receive free access to a personalised ReviewPro online dashboard, valued at $1,000 AUD. The dashboard allows properties to manage their reputation and guest reviews across all major online review systems and social media platforms in one online location.
Recognition for points in Tourism and Events Queensland’s Best of Queensland Experiences Program .
Recognition of a property’s Star Ratings accreditation through the Australian Tourism Data Warehouse .
Inclusion of a property within the Australian Tourism Industry Council’s Star Rated properties nationwide advertising campaigns.
Receive a free property listing on starratings.com.au and on trustthetick.com.au – both listings support direct guest bookings.

What does the process involve?

Want more information?

Star Ratings – Are they still relevant?

26 February 2024

When motel leases were first introduced in the 90’s, the star rating was a very relevant consideration. The AAA scheme was originally owned by the Australian Motoring Clubs and had been in operation since the 1950’s. It was recognised as Australia’s only independent, accredited accommodation scheme, and was seen as an independent assessment of how the property was being maintained. Many landlords were satisfied with the maintenance of their property, where a certain star rating was being achieved.

Times started to change with the increase in the digital world and the rise of various online review platforms, and subsequently the AAA rating system ceased to operate. In 2017, the Australian Tourism Council took over the star rating scheme and continues to operate as Star Ratings Australia.

Why is this relevant?

Most motel leases will still have an obligation to:

maintain a certain star rating;
arrange an inspection every 12 months;
comply with the AAA inspection report; and
provide a copy of that report to the landlord.

Usually the definition of AAA star rating will include any successors of the AAA, and Star Ratings Australia is generally accepted to be the successor of AAA.

Under Star Ratings Australia, the system was changed significantly and moteliers need to be a member of Star Ratings Australia to be part of the program. When first joining Star Ratings Australia there will be an initial inspection and then a site visit every 3 years thereafter. This is much less frequent than the reports prepared historically by AAA.

It may simply not be possible to comply with these lease obligations due to the change in the system, or it may be that the star rating system is not as relevant as it used to be for your motel.

It is also important to understand that the actual ‘star’ symbols are a licensed trademark and can only be used by properties that have been licensed to use them by the Australian Tourism Industry Council (ATIC).

Whilst many landlords are understanding of the changes, any incoming purchaser (and their financier) will want to see the lease amended and updated to ensure that they are not walking into a situation where they could technically be in breach of the lease from day one.

Maintenance and Redecoration

Historically, the star rating system was a guide of maintenance and redecoration for both landlords and tenants to ensure that the property was kept well maintained and refurbished. With the less frequent inspections, it is important that both landlords and tenants consider if their maintenance and redecorate clauses in their lease are still achieving what they are intended to achieve.

Often, older motel leases will provide that where the star rating ceases to exist and there is no alternative rating classification scheme, then the tenant must:

at reasonable times, redecorate the motel;
paint, repaint, re-cover, clean etc the interior and exterior of the building; and
maintain the gardens and landscaping (which could include restoring and replacing).

New leases will require these tasks to be attended to at reasonable times throughout the term of the lease.

Often these types of works are done by tenants on an ad hoc basis or a rolling schedule, rather than in one big job. It is worthwhile checking to ensure that if you have any such “redecoration” obligations, you know what needs to be done and by when.

Key takeaways

If you haven’t read your lease lately then we strongly suggest that you do. If there is anything at all that you don’t understand then please ask us. A small investment of time now could save many hours – and potentially a lot of money – in the future.

After your own review of the lease, you may find that it is an opportune time to check in with your landlord and have a discussion about some possible updates. This can only be done with the agreement of both parties, however in our experience, it is much easier to reach an amicable agreement when the goal is to update the lease so that it serves the interests of both parties. This is certainly easier to do in times of peace than in the heat of a battle arguing about who needs to do what, or with the pressure of a sale.

As each lease and business situation will be different, please take our comments as general guidance and contact Mahoneys to obtain timely and practical legal advice on the actual issues you are facing.

Written by Amy ODonnell

Level 18, 167 Eagle Street Brisbane QLD 4000 GPO Box 3311 Brisbane QLD 4001

P: 07 3007 3777 F: 07 3007 3778 Contact Us

Level 2, 235 Varsity Parade Varsity Lakes QLD 4227 PO Box 482 Varsity Lakes QLD 4227

P: 07 5562 2959 F: 07 5575 7803 Contact Us

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Conventus Law

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Australia – A Legal Guide On The Hotels, Leisure & Gaming Industry.

August 9, 2017 by Conventus Law

9 August, 2017

Australia’s tourism industry is one of the largest in the world. Tourism is Australia’s largest services export and it contributes approximately A$35 billion to the country’s Gross Domestic Product. The Australian tourism industry spans across a range of sectors including luxury resorts, casinos, nature retreats, theme parks, short-term accommodation, travel agents, transport companies, retail, and education providers. This publication provides an overview of the business, legal and policy issues relating to foreign investment in tourism assets as well as particular legal issues associated with investments into the hospitality industry and the gaming industry.

Overview of the tourism investment market

Investment Market

Australia’s proximity to expanding Asian markets has enabled it to capitalise on the increasing demand for unique tourism destinations from consumers in the AsiaPacific region.

In the past five years, offshore investment into the Australian tourism industry has been on a steady increase. During 2013, Asian investors’ interests in Australian tourism assets grew rapidly as evidenced by the completion of a number of large hotel transactions involving Asian investors.

Strong investment conditions comprising of stable and consistent consumer demand, a stable economy, a transparent legal system and a secure political environment have made and will continue to make Australian tourism assets appealing investment options for offshore investors.

Government Policy

National Strategy – Tourism 2020

The Australian Government’s publication Tourism 2020 sets out its national strategy to enhance the growth and competitiveness of the tourism industry. The policy aims to accelerate the growth of tourism and tourism investment in Australia by focusing on the following six strategic areas:

growing demand from Asia;
building competitive digital capability;
encouraging investment and implementing a regulatory reform agenda;
ensuring the tourism transport environment supports growth;
increasing supply of labour, skills and Indigenous participation; and
building industry resilience, productivity and quality.

As part of the Tourism 2020 initiative, some of the more specific commitments the Australian Government is working towards include:

reducing barriers to investment in the tourism industry;
improving levels of investment facilitation by State and Territory governments;
facilitating the increase of international and domestic airline seats on a sustainable basis; and
increasing the supply of labour in the tourism industry.

Government Objectives

The Australian Government has announced that it aims to achieve more than $115-$140 billion in overnight visitor expenditure by 2020 (up from $70 billion in 2009) by:

undertaking high impact, effective and coordinated international tourism marketing campaigns;
facilitating the existing development pipeline to deliver quality rooms to meet the target of 6,000 to 20,000 new rooms by 2020;
increasing international and domestic aviation capacity to create an additional 1.9 million inbound seats (as at March 2016) by 2020; and
employing an additional 152,000 persons by 2020 to meet increasing demand.

Tourism Australia shares this goal with the Australian tourism industry and federal, state and territory governments in an effort to maximise tourism’s economic contribution to Australia.

Hotels

According to JLL, over the past five years, capital inflows from foreign investors account for more than 50% of the capital invested in the hotel investment market. These capital contributions were primarily sourced from Asia, in particular Singapore, Hong Kong and Malaysia, with growing investor interest from China. Offshore investment interest has mainly been concerned with hotel acquisitions and hotel developments.

The attractiveness of hotel investment in Australia is illustrated by the diagram below. More specifically, the diagram shows the relative performance of the hotel industry, as compared with other property investments in Australia.

Please click on the graph to enlarge.

Development of new hotels has generally proceeded proportionally to the existing distribution. The graph below shows the supply forecast for the hotel industry, with high rates of development currently in Sydney, Melbourne, Brisbane and Hobart.

Please click on the image to enlarge.

Hotels are a distinct class of accommodation asset which can be broadly categorised into three types:

traditional hotels and motels;
resorts; and
serviced apartments.

Rating systems which can be used by Australian hotels are governed by the AAA Tourism STAR Rating Scheme.

Under the STAR Rating Scheme, hotels are rated between 1 to 5 stars based upon a hotel’s compliance with the hotel standards established by AAA Tourism.

The hotel sector is one of the most highly regulated areas compared to other business sectors. Each State and Territory has different legislation and different policies governing liquor licensing, gambling, food hygiene, safety/security and planning in relation to hotels. The following sections provide guidance on a number of legal issues a foreign investor should be aware of when considering hotel investments in Australia.

Hotel Transaction Process

While a hotel transaction involves the acquisition of property in most cases, it is far more complex than a typical property sale. The diagram below shows the typical transaction process for a hotel sale from a buyer’s perspective and the legal issues and steps to be taken at each stage of the transaction process (these are further discussed below). It should be noted that a hotel sale transaction can be by way of an asset sale or a share sale. An asset sale involves only the transfer of the physical hotel and the business assets to a purchaser. A hotel acquisition by way of a share sale, on the other hand, involves buying the shares in the entity holding the relevant hotel asset.

Depending on which method of sale is proposed, different legal issues will arise (for example, only a share sale will require the purchaser to take on any liabilities, including tax liabilities, of the entity in which it seeks to acquire shares, which were accrued prior to the purchase of the hotel).

To be assisted through each stage of the transaction process, an investor should engage consultants with adequate experience and specialised knowledge of the hotel and tourism industry. This step should be undertaken at the beginning of the transaction process before any action is undertaken as a strong team of consultants is essential to ensuring a successful transaction. The diagram below shows a typical team of consultants that an investor may appoint at the beginning of a transaction.

Hotel Development

Not all hotel investments in Australia have been in the form of a purchase of an existing hotel. Over the years there has been a steady interest in hotel development where investors either acquire vacant sites for development into hotels or mixed-use developments, or acquire existing commercial or office buildings for conversion into hotels.

Some key issues and trends in relation to hotel developments are addressed in the following sections.

Environmental and planning laws in Australia have many complexities. There is no uniform national planning system in Australia. Each State and Territory has its own legislation and administrative departments for regulating the use and development of land within its jurisdiction. Within each State and Territory, there are regulatory frameworks and policies at both the state level as well as the local government level. For example, in NSW the legislation permits local governments and the state government to each create environmental planning instruments (EPIs) to regulate the development of land in matters within their control.

In addition to the development control framework in each State and Territory, the federal government also imposes obligations on developers in relation to issues of national significance (for example, approval is required where a development will have or likely have a significant impact on World Heritage areas or threatened or migratory species). Similar to the regimes in each State and Territory, there are also defined processes for obtaining development approvals from the federal government.

Land use is controlled at the broadest level by the division of land into “zones”. Depending on the zoning of land, a particular development may be permitted without regulatory approval, only permitted with regulatory approval, or prohibited. For example, land in an urban area may be zoned “residential” and only certain kinds of dwellings and associated infrastructure may be permissible with development consent from the applicable local government.

While there are similarities between development control processes in each State and Territory, there will also be significant procedural differences. It is recommended that a foreign investor be aware of all the development approvals and processes (at the State level and federal level) required before committing to a development proposal.

Office Conversion

In recent times, investors faced with limited hotel investment opportunities have turned to the option of converting well located office buildings to hotel accommodation. Investors interested in exploring office conversion options should obtain advice in relation to real estate law and environmental and planning law in the relevant jurisdiction.

Mixed Use Developments

Given the significant emphasis placed by foreign investors on investment return and growth potential, many investors have ventured outside the traditional hotel development and instead have turned to mixed use developments. Mixed use developments are developments which involve any combination of residential, commercial (including hotel) or retail land uses. For investors, mixed use projects are generally considered to bring higher returns, spread risk and generate synergies between uses.

Strata-Titled Developments

Strata-titled hotel developments emerged in response to investors’ needs for flexible funding options, and have become particularly popular in many tourism destinations around Australia. Strata-titled developments involve the division of land or property into multiple parcels to permit independent ownership of the divided parcels. Generally the individual strata units in a hotel are sold to individual investors and then leased back to the developer/ operator to be managed and operated as a hotel. This form of development is particularly relevant for serviced apartment development (which is a form of mixed use development involving commercial accommodation use and residential use). As an alternative to the traditional debt and equity financing structure, strata-titled developments permit a developer or investor to attract capital from small, medium and large investors.

The legal frameworks relating to strata-titled properties differ across Australia. This factor can be an inhibiting issue in the pursuit of large Australia-wide operations by developers, body corporate service providers and other key players in the industry.

Hotel Structures

There are a number of ownership structures that can be adopted by a hotel owner to deal with the management and operation of a hotel. The following sections will briefly explain the features and key issues affecting a hotel operated under a management agreement, franchise agreement and a management lease.

Hotel Management Agreement

A hotel management agreement is the most common form of hotel operating structure. A management agreement is an agreement between the hotel owner and the hotel management company, under which the hotel owner appoints the hotel management company to manage and operate the hotel for and on behalf of the hotel owner. Under a management agreement arrangement in Australia, the operator is responsible for managing the day to day running of the hotel while the hotel owner is responsible for providing capital and employing the employees.

The operator is usually paid a management fee which is calculated by reference to the gross revenue and/or profit of the hotel.

Hotel Franchise Agreement

A hotel franchise agreement has many of the essential features of a hotel management agreement. However a key difference with a franchise arrangement is that the hotel owner, as a franchisee, also acts as the operator of the hotel and the franchisor has very little day to day management of the hotel business. Under a franchise arrangement, the hotel owner pays a fee to the franchisor in return for the franchisor’s business system and branding. These arrangements are generally more appropriate where the hotel owner is interested in adopting a working business model but not willing to give up control of the operation of the hotel business.

Hotel Management Lease

A management lease is a hybrid arrangement combining many of the terms usually contained within a lease and a management agreement. However, unlike a management agreement or a franchise arrangement, the hotel owner does not have an interest in the hotel business other than through the payment of rent. Under the arrangement, the hotel owner owns the land and the improvements of the hotel building. The hotel owner leases the land to the operator who manages the hotel business on its own behalf. While, subject to the rent structure, the hotel owner is less exposed to the risk of the business, a management lease is not a typical arrangement for managing a hotel in Australia.

The table below identifies some of the key features and responsibilities of parties in each of the hotel ownership structures outlined above.

Please click on the table to enlarge.

Key Terms of Operating Agreements

A summary of some of the key terms for each hotel ownership arrangement is set out in the table below.

The gambling industry is a heavily regulated sector in Australia. Each State and Territory implements a number of distinct laws, and establishes regulatory authorities and policies for governing this area. Despite this, investment in the sector has grown and in recent years this sector has received increased attention from investors.

Forms of Legal Gambling

Legal gambling in Australia can be categorised as follows:

Gaming – which comprises all legal forms of gambling (other than wagering), including:
electronic gaming machines (EGMs);
keno; and table games;
sports betting; and
race betting.

In Australia, gambling revenue is primarily dominated by gaming. In the past five years, revenue from EGMs in clubs and hotels has accounted for around 50% of gross profits from gambling operators in the industry. Revenue from casinos account for around 20% and wagering for around 15% of gross profits of gambling operators. The following sections will provide a brief overview of the electronic gaming machines market, casino market and wagering market.

Electronic Gaming Machines

In each of the States and Territories legislation and authorities regulate almost every aspect of business activity relating to EGMs. There are stringent licensing processes which apply to businesses wishing to operate in the industry with different licences needed in order to manufacture, supply, transfer, service, own or hold, and operate gaming machines in each jurisdiction. Additionally, for some States and Territories, there are caps and limits on the number of EGMs which may be operated within the State or Territory.

As at June 2017, the Australian casino industry comprises 13 casinos (noting that the development of the Queens Wharf Casino in Brisbane and Crown Restricted Gaming Facility in Sydney is under way). In addition to the existing casinos, there are also a number of proposals which relate to the development of new integrated resorts with casino features.

The operation of casinos involves a complex regime of policies, regulations and fees and there are in some jurisdictions restrictions on foreign ownership of casinos. For example, in Western Australia legislation limits foreign ownership of a casino licensee to 40%.

The profitable nature of a casino business has underpinned growing interest in integrated resort developments. Foreign investors considering investment into casinos should note that a casino’s revenue source include EGMs, table games and international VIP programs.

Australia has a number of wagering and betting service providers, some of which have been recently purchased by foreign investors. These betting agencies generally act as sports and racing bookmakers, and providers of online wagering. While the legislative framework for wagering is statebased, the provision of online wagering services has changed the dynamics of the industry significantly. In particular, many betting agencies are now able to provide services to individuals in another jurisdiction without obtaining separate licences in that second jurisdiction.

Taxes related to gaming and wagering are regulated separately by each jurisdiction and are dependent upon the type of gaming and wagering conducted. It is important for investors to be aware of the tax obligations associated with the operation of gambling services.

Given the recent developments and growth in foreign investment in Australian tourism assets and the Australian Government’s commitment to supporting the growth of tourism investment in Australia, the Australian tourism industry will continue to be an area of international focus. For Chinese investors and institutions proposing to invest in the industry, it is recommended that steps be undertaken to understand the unique and complex commercial, legal and policy issues affecting relevant investment. Advice should be sought from professionals and consultants with specialised knowledge in this industry

Interactive Gaming

Interactive and internet gaming is regulated under State and Territory legislation as well as federal legislation, which regulates interactive and internet gaming occurring both within Australia and extraterritorially.

The diagram below provides a useful summary of what types of gaming are considered to be “interactive gambling services” under the federal legislative framework.

Liquor licensing

One of the complex issues that can arise in a hotel transaction is in relation to a hotel’s liquor licence. While the operation of a hotel’s accommodation business does not require a licence, a liquor licence is required if a hotel’s business will involve the sale and supply of alcohol for consumption.

The sale and supply of liquor is regulated by each State and Territory, through its own legislation, regulatory authority and licensing framework. While there are similarities between the regulatory framework in each State and Territory, the framework in each operates independently. Generally the decision to grant a liquor licence is based on an assessment of the overall social impact of the hotel.

In some States, for example NSW, a hotel licence may also enable gaming machines to be operated where separate approval has been granted.

One of the most important questions an investor should ask when entering into a transaction to purchase a hotel is: who holds the beneficial interest in the hotel’s liquor licence and how can this be effectively transferred to the hotel purchaser? There may be different answers to this question depending on the licensing framework and hotel structure that has been adopted by the hotel owner and operator (see information on hotel structures).

Furthermore, the approval process of the relevant licensing authority may also complicate, if not cause delay to, a hotel transaction. In some jurisdictions, there are disclosure requirements imposed by the licensing authority which require personal and confidential details of the incoming hotel owner and directors. In order to ensure that the hotel business as a whole is successfully transferred to the buyer, due diligence must be conducted in the early stages of a transaction so that appropriate measures can be taken to transfer the hotel’s liquor licence to the buyer.

Key transactional issues

There are various key issues introduced into transactions which involve properties that are the subject of a liquor licence. Some of these critical issues include:

key due diligence issues
achieving provisional approval as a condition precedent
extent of probity and disclosure obligations state to state
approval of management agreements in applicable jurisdictions
approved manager or nominee requirements
other compliance issues.

Foreign investment

The general policies and regulatory requirements which apply to foreign investment in Australia under the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA) also regulate foreign investment in Australian tourism assets. Generally for foreign investment in Australia, an application must be made to the Foreign Investment Review Board (FIRB) prior to a foreign person obtaining an interest in Australian land (unless a relevant exemption applies).

From 1 December 2015, changes to FATA and the Foreign Acquisitions and Takeovers Regulation 2015 (Cth)(Regulations) commenced. On the same day, the Foreign Acquisitions and Takeovers Imposition Fees Act 2015 (Cth)and the Register of Foreign Ownership of Agricultural Land Act 2015 (Cth) also came into effect (collectively, the Framework).

The Framework introduced new thresholds for notifiable actions based on both the type of acquisition and the nature of the foreign person seeking to invest. The Framework also introduced record keeping and reporting obligations, applications fees and penalties for non-compliance.

Relevant actions under the Framework are classified as either significant actions or notifiable actions. Actions that are notifiable must be notified and significant actions may be, but are not required to be notified to FIRB. Significant actions and notifiable actions include acquisitions of the types of interests set out in the table below, where the relevant threshold test is met.

Interests in Australian land may be significant or notifiable. An interest in Australian land includes:

a legal or equitable interest in Australian land;
an interest in a security in an entity that owns Australian land, being a security that entitles the holder to a right to occupy a flat or home unit situated on the land;
an interest as lessee or licensee in a lease or licence giving rights to occupy Australian land if the term (including extension or renewal) is reasonably likely to exceed 5 years;
an interest in an agreement involving the sharing of profits or income from the use of, or dealings in, Australian land if the term of the agreement (including extension or renewal) is reasonably likely to exceed 5 years;
an interest in a share in an Australian land corporation or agricultural land corporation;
an interest in a unit in an Australian land trust or agricultural land trust; and
if the trustee of an Australian land trust or agricultural land trust is a corporation – an interest in a share in
that corporation.

Categories of the Australian Land

In respect of interests in Australian land, the table below sets out the categories of Australian land:

Examples of Notifiable Actions

In addition to the previous table, the table below sets out the types of acquisitions and arrangements in the tourism industry which are subject to the FATA.

Monetary Thresholds

Monetary screening thresholds are indexed annually on 1 January using the GDP implicit price deflator (except for the $15 million agricultural land threshold and the $50 million land threshold for Singapore and Thailand investors, which are not indexed). The below table is current as at June 2017.

* All such actions are notifiable where the person taking the action is a foreign government investor.

** To obtain the benefit of this increased threshold, the investor cannot be a wholly owned Australian subsidiary.

Contacts or Binding Documentation

Contracts or binding documentation entered into by foreign investors in relation to any of the above transactions must be made conditional upon the Treasurer’s approval (unless approval has already been granted or a no objection letter has been obtained). Contracts should provide for a minimum 40 days from the date of lodgement for a decision from the Treasurer.

Decision to Approve or Object

In deciding whether to approve or object to a foreign investor’s proposed transaction, the Treasurer assesses whether the proposed transaction is contrary to the national interest. FIRB has previously reported that the following factors are normally assessed in respect of each proposed transaction, on a case by case basis:

national security;
competition;
impact on other Government policies (including taxation); and
impact on the economy and the community and the character of the investor.

The Treasurer is entitled under the FATA to impose conditions when approving a proposed transaction (for example, time periods for the commencement and completion of construction or development works in relation to a proposal to acquire vacant land for development into a hotel). More recently, conditions are increasingly being imposed on foreign government related investors.

Exemption Certificate

Section 58 of the (Cth) allows a foreign person to apply for an exemption certificate in relation to acquisitions of one or more interests in Australian land. Applications are considered on a case-by-case basis to ensure that they are not contrary to the national interest.

An exemption certificate will typically specify the maximum value of interests that can be acquired and the period during which acquisitions can be made.

Application Fees

Fees (which are indexed each financial year) apply to applications and must be paid before an application will be considered by FIRB. The fee payable by an applicant depends on the type and value of the proposed investment and are non-refundable if an application is rejected.

More information about fees can be found on the FIRB website: https://firb.gov.au/applications/fees-2016-17/

Tax Conditions

In February 2016, the Treasurer announced that “standard conditions” would be imposed on foreign investment approvals to ensure multinational companies investing in Australia pay tax in Australian on their Australian earnings. The conditions are very broad (a breach may arise from even minor acts) and potentially burdensome. In essence, the conditions will require compliance with Australian taxation law and with Australian Taxation Office (ATO) directions to provide information in relation to the investment.

On 4 May 2016, FIRB released revised “taxation conditions of certain no objection decisions”. The original announcement and tax conditions appeared to indicate that standard tax conditions would be applied universally to all no objection approvals.

The Government announcement that accompanied the release of the revised tax conditions stated that the conditions effectively target those foreign investors that pose a risk to Australia’s revenue – which may suggest that the tax conditions will not be applied in all cases. This is consistent with a Guidance note that was released by FIRB on the revised tax conditions, on 24 November 2016, which also provides additional information on the conditions.

A copy of revised tax conditions can be found online on FIRB’s website at: https://firb.gov.au/files/2016/05/Tax_conditions.pdf

Property Law

While hotels are businesses, they are also a subclass of commercial property. The land and building on which a hotel is situated is governed by property law. An investor wishing to acquire an interest in a hotel must undertake title due diligence to examine the quality of the interest they are proposing to acquire.

Overview of Australian Property Law

Under the Torrens system, title or ownership right to land or property is created by the act of registration in a central register or record. In most cases, the person who is recorded as the owner of a parcel of land cannot have their title challenged or overturned. Priority between interests in property is determined by order of registration and not order of execution. Generally, upon registration of an interest, a person’s registered interest is only subject to prior registered interests and free from all interests which are not registered. This rule is subject to a number of exceptions such as fraud, some short-term leases and misdescription of boundaries.

Each State and Territory has its own property legislation and title registration system. Whether an interest can be registered or not varies between States and Territories. A buyer undertaking title due diligence of a hotel should be aware of the types of interests, including property interests and contractual interests, which may arise in a hotel transaction.

Property Interest

Property interests, unlike contractual interests, can be enforced against all other persons. The table below sets out a number of property interests, some of which may be registered under the Torrens system.

Contractual Rights

Contractual interests and rights are only enforceable against particular persons who may be party to the contract giving rise to the contractual interest. The following rights are purely contractual:

Licence – a grant of non-exclusive use or access to land;
Options – a call option or put option to acquire land; and
Right of first refusal to acquire land – where the land owner agrees with a person not to sell the land without first offering it to that person

Australia’s three levels of government – Federal, State and local – all impose taxes on real estate related transactions and investment. In order to facilitate cross border investment the Australian government has also established taxation agreements with numerous foreign governments to simplify the taxation of foreign investors and avoid double taxation.

The main taxes that apply to real estate investment and transactions for both local and foreign investors in Australian real estate include:

income tax – which encompasses capital gains tax (CGT) and withholding tax for foreign investors;
goods and services tax (GST);
stamp duty; and

Income tax is imposed by the Australian federal government and is levied on individuals, companies, superannuation funds and, in some circumstances, trustees. The income of partnerships (other than limited partnerships) and trusts (other than certain public unit trusts) is generally taxed in the hands of partners or beneficiaries.

Income tax is levied on taxable income, being assessable income less allowable deductions. Assessable income includes net capital gains under the CGT rules. Taxable income is generally calculated for an income year, which is the year ending 30 June, unless the taxpayer has been given leave by the Commissioner to adopt a substituted accounting period. Leave will usually be granted for an entity with a foreign parent to adopt an accounting period that ends at the same time as that of its parent.

A tax loss may arise for an income year if the allowable deductions exceed the total assessable and certain exempt income for the year. Such losses may be carried forward and deducted in future years, subject to satisfying certain loss utilisation tests in the case of companies and trusts.

Foreign Investors

A foreign investor’s Australian assessable income in a given year of income can include Australian sourced income and any capital gains from an investment in “taxable Australian property”.

Taxable Australian property includes direct holdings in Australian real estate. It also includes any property that the foreign resident has used at any time in carrying on a business through a permanent establishment, as defined in the Tax Acts, in Australia.

Indirect interests in real property are taxable Australian property if it is shares or other interests in companies or entities such as trusts that are Australian land-rich where the holding of the investor, together with holdings of associates, constitutes at least a 10% interest in that entity (determined at the time of the disposal or the CGT event, or throughout any 12 month period that began no earlier than 24 months prior to the time of disposal or the CGT event). A company or trust is considered land rich if more than 50% (measured by market value) of its assets consist of Australian real property. Such indirect interests are called “indirect Australian real property interests”.

From 1 July 2016, a non-final withholding tax applies in respect of disposals by foreign residents of the following types of taxable Australian property (unless the disposal is an excluded transaction):

indirect Australian real property interests;
direct holdings of Australian real estate; and
options and rights to acquire the above mentioned assets.

Examples of disposals which are excluded transactions include where the disposal occurs on an approved stock exchange, and in the case of a disposal of a direct holding of Australian real estate, the market value of the Australian real estate immediately after the disposal occurs is less than A$2 million (to be decreased to A$750,000 for acquisitions occurring on or after 1 July 2017).

If the regime applies to a disposal, the entity which acquires the asset (whether the entity is an Australian resident or foreign resident) may be required to withhold an amount of up to 10% (to be increased to 12.5% for acquisitions occurring on or after 1 July 2017) of the consideration paid to acquire the asset and remit that amount to the Australian Taxation Office (ATO) on completion of the disposal. This is a non-final withholding tax that is calculated on the purchase price rather than the capital gain. Consequently, to the extent that the amount withheld exceeds the tax liability on any capital gain on the disposal of the asset, the foreign resident vendor can obtain a tax credit or refund by lodging an Australian income tax return with the ATO for the income year in which the disposal occurs.

Australia also has a non-final withholding tax regime which applies to a limited range of payments made to foreign residents (such as payments for certain construction and installation activities).

Australia has a final withholding tax regime for the following types of income:

interest is subject to withholding tax at the rate of 10% (certain exemptions can apply);
“unfranked” dividends (ie dividends paid out of profits on which no company tax has been paid) is subject to withholding tax at the rate of 30% – no withholding tax is payable on “franked” dividends (ie dividends paid out of taxed profits); and
royalties are subject to withholding tax at the rate of 30%.

Australia’s double tax agreements generally reduce the tax on unfranked dividends to 15% (and under some agreements to 5% or nil) and on royalties to 10% (5% under some agreements). The tax on interest is generally not reduced below 10% (unless specific exemptions are available under certain agreements to reduce it to nil).

As explained further below, Australia also has a “Managed Investment Trust” (MIT) regime for qualifying Australian Real Estate Investment Trusts (REITs). Under this regime, foreign resident investors who are resident in “exchange of information” countries are generally taxed at 15% on their income from the REIT (10% if the MIT holds only newly constructed energy efficient commercial buildings (or equivalent standard in retail and residential buildings)).

Taxation on Real Estate Transactions

Gains on the disposal of real estate can be taxed as ordinary income or as capital gains.

The company tax rate on income is 30% (or 27.5% for companies with an associate-inclusive annual turnover of less than A$25 million). The Government has proposed legislation to gradually decrease the company tax rate for all companies to 25% by 2026/27. The top marginal tax rate for individuals is currently 45% plus 2% Medicare levy for Australian residents (with this Medicare levy proposed to be increased to 2.5% from 1 July 2019 as announced in the 2017/18 Federal Budget). From an income tax perspective, both an Australian resident taxpayer and a foreign resident taxpayer can be subject to capital gains tax on interests in Australian real estate holding companies or entities.

Where the seller is an Australian resident individual, trust or Australian complying superannuation fund and has held the real estate for at least 12 months, a discount (CGT concession) may apply so that only 50% (or 66.6% in the case of a superannuation fund) of any capital gain will be subject to tax. There is no discount for companies.

The CGT discount no longer applies to foreign residents in respect of assets acquired after 8 May 2012. For assets held by foreign residents prior to 8 May 2012, the CGT discount rules may be partially applicable depending on the circumstances.

The following sections outline taxation rules for different entities.

Income Tax Rates – Resident Individuals

Taxpayers who are residents of Australia are liable to tax on income derived from all sources, whether inside or outside of Australia.

The marginal rate of tax applicable to an Australian resident individual is scaled according to his or her annual taxable income. The resident individual tax rates for the 2017-18 tax year are, generally, as follows:

Income Tax Rates – Foreign Resident Individuals

Foreign residents are liable to tax only on income derived from Australian sources. The foreign resident individual tax rates for the 2017-18 tax year are as follows:

Foreign resident individuals are taxed on their Australian source income (apart from dividends, interest and royalties and certain payments from managed investment trusts, which are subject to withholding tax) at the above rates. In some situations a foreign resident individual may be relieved from Australian tax under an applicable double tax agreement (see information on foreign purchaser duty subcharges).

Companies

Taxation of Australian Resident Companies

An Australian resident company is liable for tax at the rate of 30% on its worldwide taxable income (or at the rate of 27.5% if the company’s associate-inclusive annual turnover is less than A$25 million). The Government has proposed legislation to gradually decrease the company tax rate for all companies to 25% by 2026/27.

A company is defined for tax purposes as including all bodies corporate and unincorporated but excluding partnerships (other than limited partnerships, which are generally taxed like companies). Certain public unit trusts are also taxed like companies.

Australia has a tax consolidation regime where Australian companies and other entities treated as companies for tax purposes can generally choose to consolidate for income tax purposes with all its wholly-owned Australian entities.

Taxation of Foreign Resident Companies

A foreign resident company is taxed on its Australian source income (apart from dividends, interest and royalties and certain payments from managed investment trusts, which are subject to withholding tax) at the same rate as resident companies. A foreign resident company may be relieved from Australian tax under a relevant double tax agreement.

Certain foreign hybrid entities may be treated as companies or partnerships for tax purposes at the election of the Australian shareholder or partner.

Investors in a resident trust are generally taxed on the share of the net taxable income equal to the share of trust income they are presently entitled to receive. If no beneficiaries are presently entitled to receive income of the trust estate the trustee must pay income tax (potentially at the top marginal rate for individuals plus Medicare levy).

The net income of a trust estate is generally the difference between its assessable income (including net capital gains) and all allowable deductions, calculated as if the trust was a resident taxpayer. A net loss of a trust is not deductible to beneficiaries. Resident beneficiaries, whether individuals or companies, are required to include in their assessable income the share of the net income of a resident or foreign resident trust estate equal to the share of the trust income to which they are presently entitled, and are subject to tax on their share of the net income at the rates generally applicable to them.

Foreign resident beneficiaries who are presently entitled to a share of the trust income are subject to tax on their share of the net income of the trust estate that is attributable to sources in Australia, at the rates applicable to foreign residents.

Special rules apply to the taxation of distributions to foreign investors from trusts that qualify as a MIT (see below).

Australian Real Estate Investment Trusts (REITS)

Australian REITs are a specific application of the general law of trusts in Australia. The tax structure of REITs requires the real estate holding vehicle to be a passive fund and allows the fund to distribute 100% of the cash it derives from its assets. This allows REITs to maximise their yields but it is in turn dependent on their ability to raise equity in the market for refurbishment and other management requirements. The regulatory structure supports this raising of equity through rigorous disclosure, licensing and registration requirements, all designed to promote transparency and investor confidence.

Australian investors in Australian REITs are taxed as ordinary beneficiaries of a trust. To the extent that the distributions exceed the investor’s share of the net taxable income of the trust (eg cash distributions that are sheltered by building or plant depreciation) are considered “tax deferred”, as that excess reduces the investor’s cost base of its interest in the trust. If the cost base is reduced to nil, a capital gain is realised for the remaining excess.

Foreign investors in Australian REITs are subject to the following:

Australian tax on their share of the REIT’s net income attributable to Australian sources (including capital gains) at their personal tax rates or at 15% in the case of a qualifying investor in a REIT that is a MIT;

withholding tax of 10% on interest and 30% on unfranked dividends included in the income of REIT to which they are presently entitled, and distributed by the REIT. This may be reduced by double tax treaties (if applicable); and capital gains tax on the investor’s interest in the Australian REIT whether held directly or indirectly through an interposed entity. Individuals may qualify for part of the 50% CGT discount concession if assets are disposed of that were held prior to 2012. The 50% CGT discount is not available to foreign resident individuals in respect of assets acquired after 8 May 2012. Similar to Australian residents, tax deferred distributions reduce foreign investors’ cost base of their interest in the REIT. When the cost base is reduced to nil, a capital gain is then realised on any subsequent tax deferred distributions received by the investor.

Australian REITs that qualify as MITs are provided with additional tax concessions in Australia, including the ability to treat assets such as real property as assets held on capital account (which allows its eligible beneficiaries to access the CGT discount concession) and to apply a reduced 15% withholding tax on distributions made to its foreign resident beneficiaries that are tax resident in countries that are on an “exchange of information” list.

From 1 July 2016 (or from 1 July 2015 at the election of the MIT), an attribution regime applies to MITs that are qualifying “Attribution MITs” (AMITs). One of the key features of this regime is that investors in the AMIT are taxed based on the amounts attributed to them, rather than on their share of the income of the AMIT to which they are presently entitled.

Double Tax Agreements

Australia has entered into agreements with a large number of countries for the purposes of eliminating double taxation of income. The general effect of a double tax agreement is to limit Australia’s taxing rights in respect of certain classes of income derived by a resident of the other country and vice versa.

Although similar, the double tax agreements are not all identical and similar payments may lead to different Australian tax consequences, depending on the country of residence of the taxpayer.

For residents of countries with which Australia does not have a double tax agreement, Australia will generally tax Australian source income derived by such a person determined in accordance with Australia’s domestic source rules. Dividends, interest and royalties, are subject to withholding tax as described above.

Thin Capitalisation

Thin capitalisation rules operate to deny debt deductions (including interest and borrowing costs) where an entity’s debt levels exceed certain prescribed thresholds.

The main thresholds in relation to general foreign investment in Australia are:

broadly, the average value of total debt used to fund the investment must not exceed 60% of the average value of the total assets (subject to some adjustments for nondebt liabilities and associate entity equity); or
if the debt exceeds the threshold (referred to above), the debt must not exceed an “arm’s length” amount or a “worldwide gearing debt” amount.

The characterisation of debt and equity for the purposes of applying the thin capitalisation rules is based on the debt/equity rules in the Australian tax law. These rules, broadly speaking, seek to characterise instruments as debt or equity for tax purposes based on economic substance rather than legal form.

There is a de minimis rule which provides that where the total debt deductions of the entity and its associate entities do not exceed A$2 million for the income year, the thin capitalisation rules will not apply to deny the entity’s debt deductions regardless of the entity’s gearing ratio.

Transfer Pricing

International transfer pricing rules are contained in both Australian domestic law and double tax agreements. These rules allow the Commissioner to determine and substitute an arm’s length price for Australian tax purposes if the Commissioner is satisfied that the parties are not dealing at arm’s length. Parties will broadly be dealing at arm’s length if they deal with each other as if they were independent persons entering into transactions at market value.

In order to satisfy the Commissioner that an acceptable arm’s length pricing methodology has been adopted in relation to such a transaction (in accordance with Organisation for Economic Cooperation and Development (OECD) guidelines), sufficiently detailed documentation must be maintained.

Foreign Exchange

There are comprehensive rules for translating foreign currency amounts into Australian currency for income tax purposes, and for taxing foreign exchange gains and losses.

Anti-Avoidance Rules

There are numerous specific anti-avoidance rules and general anti-avoidance provisions in the Australian tax law.

In almost every significant transaction, consideration of the general and specific anti-avoidance provisions is necessary.

The general anti-avoidance rule (Part IVA) enables the Commissioner to make determinations to cancel tax benefits obtained by a taxpayer (and include an amount of assessable income, disallow a deduction or a foreign income tax offset or impose a withholding tax liability) if, having regard to various matters, it would be concluded that a “scheme” was entered into for the sole or dominant purpose of obtaining the tax benefit. The promoter of a scheme to which the general anti- avoidance provision applies may also be subject to substantial civil penalties.

Australia also has a multinational anti-avoidance rule (MAAL) which applies to tax benefits obtained by large foreign multi-national taxpayers (with global turnover of A$1 billion or more) on or after 1 January 2016 under both new and existing schemes. In general terms, the MAAL may be applied where the principal purpose of the scheme is to obtain an Australian or Australian and foreign tax benefit and where certain supplies were made to an Australian customer with the assistance of associated or dependent Australian entities such that the income derived is not attributed to a taxable Australian permanent establishment. If applied by the Commissioner, the MAAL could result in the imposition of Australian tax on that income and significant penalties and interest.

Australia also has a recently enacted "diverted profits tax" (DPT) which applies from 1 July 2017 to schemes which are entered into before or after that date.

Broadly, the measure is designed to target arrangements entered into by large multinational taxpayers which are Australian residents or Australian permanent establishments of foreign residents, where:

the taxpayer "diverts" profits offshore to a low-tax related party which results in an overall tax reduction on the profit by more than 20%; and

it would be concluded that the arrangement has insufficient economic substance as it was designed to secure the

tax reduction.

The Commissioner is empowered to impose a significant "diverted profits charge" on the taxpayer at a rate of 40% of the diverted profit, and if invoked, there will be prescribed periods in which the taxpayer may request a review and/or challenge the assessment.

Goods and Services Tax

Transfer of Real Estate

Transfers of real estate are subject to Australian Goods and Services Tax (GST) if the requirements for a taxable supply are satisfied. As a supply is defined very broadly to include the supply of goods, services or real estate and the creation, grant, transfer, assignment or surrender of any right or obligation, GST can also potentially apply to incidental supplies, such as covenants to repair, releases and payments under indemnities.

GST, generally calculated as 10% of the purchase price for the real estate, is imposed on the seller, but in the case of non-residential real estate the cost is normally passed on to the buyer under the contract (who can usually claim an input tax credit for the GST incurred). The Government has announced a proposal to require purchasers of new residential premises and subdivided land to withhold and remit GST on such sales from 1 July 2018.

Land or commercial premises transferred as part of a sale of an enterprise (which can include an enterprise of leasing the land/premises) can be GST-free under an exemption for the supply of a going concern if this treatment is agreed in writing by the seller and the buyer. The parties to the transfer of leased commercial premises will generally agree to treat the supply as a supply of a going concern as this removes the cash flow cost of GST being passed on to the buyer, and also reduces the stamp duty cost (as stamp duty is calculated on the GST inclusive price). The Government has announced a proposal to require purchasers of new residential premises and subdivided land to withhold and remit GST on such sales from 1 July 2018.

The concessional margin scheme can also apply to reduce GST on the transfer of real estate, subject to agreement between the seller and buyer. Under this scheme, GST is generally paid on the difference between the price the seller paid to acquire the real estate and the purchase price received by the seller when selling. Where the seller acquired the real estate after 1 July 2000 (when GST was introduced), this price difference, or “margin”, is generally calculated by using the actual price paid by the seller when it acquired the real estate. Where the seller acquired the real estate prior to 1 July 2000, the margin is generally calculated by reference to the value of the real estate as at 1 July 2000. Generally, the margin scheme can only be applied on a sale where the margin scheme was applied to the seller’s acquisition of the real estate.

While the margin scheme can reduce the GST payable, the buyer cannot claim input tax credits for GST paid if the margin scheme applies. Because of this, in practice, the margin scheme is generally only applied where the real estate will (or may) be ultimately redeveloped and sold as new residential premises (as buyers of new residential premises will generally not be entitled to claim input tax credits and so GST will need to be absorbed into the end sale price).

Hotels, motels, boarding houses, inns and hostels are generally treated as commercial residential premises which attract GST on transfer unless the going concern exemption is available.

Transfers of residential premises, other than new residential premises or commercial residential premises, are input taxed and so do not attract GST (but input tax credits are generally denied for GST paid on acquisitions which relate to such input taxed supplies).

A transfer of shares or units is also input taxed and so does not attract GST.

Supply of Accommodation

The supply of accommodation in hotels, motels etc is a taxable supply for GST purposes and thus subject to GST.

Stamp Duty on Land Transfers

Stamp duty on purchase of land

Stamp duty is a State based transaction tax. All Australian States and Territories impose stamp duty (at varying rates) on transfers of land and certain other property transferred with the land. This may include goods and certain business assets sold with land. The grant of a lease for a premium also attracts duty.

Often, the rate of stamp duty is charged on an increasing scale. As an example, the rates in New South Wales start at 1.25% and gradually increase to a top rate of 5.5% for land with a dutiable value in excess of A$1million (with a premium rate of 7% applying to the transfer of residential land with a dutiable value exceeding $3m).

Stamp duty is usually payable by the buyer, although in some States (eg Queensland) both parties to the transaction are jointly and severally liable. It is normal commercial practice for the buyer to bear the duty cost on transfers of real estate.

Stamp duty is payable from one to three months after the contract for sale (or in the case of Victoria and Tasmania, after the transfer) is signed, depending on the State or Territory. Penalties can apply for late payment. The land transfer cannot be registered until duty has been paid.

Foreigner purchaser surcharges

In addition, the States of New South Wales, Victoria, Queensland and (from 1 January 2018) South Australia each impose an additional surcharge on foreign purchasers acquiring residential property. While these measures are aimed at residential land, there has been considerable uncertainty as to their application to serviced apartments, hotels, student accommodation, retirement villages and the like. The table on the following page summarises the current surcharge provisions.

Landholder Stamp Duty

Marketable securities stamp duty on transfers of shares or units has been abolished in all States and Territories (with the exception of South Australia which still imposes duty on transfers of units in a unit trust scheme until 1 July 2018).

To prevent stamp duty on the transfer of land being avoided by interposing an entity, all jurisdictions apply landholder duty to certain acquisitions of shares in a private company, or units in a private trust which directly or indirectly owns land. Except for ACT all jurisdictions also apply landholder duty to the acquisition of a significant interest in listed companies and trusts. The acquisition of an interest in a landholding entity, whether by way of direct transfer or, for example, by means of the issue or the redemption of units or buy-back of shares, can result in a liability for landholder duty, which is calculated by reference to the gross market value of the proportionate interest in the underlying land at the transfer duty rates. Foreign surcharges can also apply to the acquisition by foreigners of interests in entities which hold residential land (in the same way as for an acquisition of the land – see above for details).

The landholder duty provisions vary considerably from State to State. However, in general, the provisions only apply to changes in “significant” interests in companies and trusts (generally 50% for private companies or trusts and 90% for listed companies or trusts) where the company or trust holds land with a value above a stated threshold. For example, the provisions in New South Wales apply to changes of interests of 50% or more in an unlisted company or unit trust where land held by it, or entities linked to it, has an unencumbered value of A$2,000,000 or more.

The table below summarises the current landholder duty thresholds.

In all States and the ACT, land tax is payable on an annual basis on the unimproved value of land, subject to certain exemptions (eg for a principal place of residence or land used for primary production). Except in the ACT, tax free thresholds apply. These thresholds and land tax rates vary. In New South Wales the top rate is 2%, while in Victoria the top rate is 2.25% with a surcharge of up to 0.375% for landholdings held by certain trusts with an unimproved land value of between A$25,000 and A$1.8million.

Some States impose an additional land tax surcharge on foreign or absentee owners of residential property. For example, in New South Wales, an additional surcharge of 0.75% is imposed on residential land owned by foreign persons from 1 January 2017. This rate will increase to 2% from the 2018 tax year. Foreign persons are defined as an individual, corporation or trust who are not ordinarily resident in Australia (ie individuals or two or more persons or trustees who have not been in Australia for 200 days or more in a 12 month period).

In Victoria, the surcharge on absentee owners is 1.5%, and includes all land which is subject to land tax (not only residential land). Absentee owners include corporations incorporated outside of Australia or in which a non-resident person has a controlling interest (eg holds more that 50% of the shares in the landholding corporation). In addition, a new vacant residential land tax of 1% of the capital improved value applies to vacant residential properties in the inner and middle suburbs of Melbourne. A Commonwealth vacant land tax surcharge of an amount equal to the FIRB application fee is also proposed for residential property acquired from 9 May 2017 by foreign owners where the property is not occupied or genuinely available on the residential market for at least six months per year.

There is also a foreign owner land tax surcharge of 1.5% in relation to Queensland land with a taxable value of $350,000 or more. However, as currently proposed, it appears to only apply to land which is owned by one or more individuals.

If the seller is liable to pay land tax on the real estate, the general practice is for the land tax to be adjusted between the seller and the buyer on completion or closing even if the real estate will not be liable to land tax in the buyer’s ownership.

Australia’s three levels of government – Federal, State and local – all impose taxes on real estate transactions and investment.

A foreign investor’s Australian assessable income in a given year of income can include any net capital gains from an investment in taxable Australian real estate.

A non-final withholding tax regime applies for disposals of taxable Australian real estate by foreign residents, which may require the purchaser to withhold up to 12.5% of the consideration for the disposal.

Foreign investors are generally not liable to pay income tax on dividends, interest and royalties derived in Australia. Rather, they are liable for a final withholding tax.

Australia has double tax agreements with other countries which will vary the amount of tax paid by foreign investors.

Australia has a concessional Managed Investment Trust regime that can provide a reduced 15% withholding tax on Australian sourced income and gains.

A broad based goods and services tax applies to the supply of real estate at the rate of 10% subject to exemptions for sales of going concerns, and the margin scheme concession.

State based stamp duties often represent a significant transaction cost and need to be carefully considered.

Foreign purchasers may be liable to a surcharge on the purchase of residential land in some States. Annual land tax charges apply to most land. Land tax foreign owner surcharges and absentee owner surcharges can also apply.

Other Issues

Intellectual Property

Intellectual property may be relevant to a hotel transaction in two scenarios. The first scenario relates to the intellectual property of the outgoing hotel owner. Where the seller owns intellectual property (including business name, trade mark and domain name) in relation to the hotel business, these interests may not necessarily be transferred with the hotel business if they are not specifically dealt with in the transaction documentation.

Accordingly, due diligence and diligent contract preparation will be crucial for ensuring all intellectual property necessary for the operation of the hotel business are transferred to the incoming hotel owner.

The second scenario is in relation to intellectual property of third parties, including where intellectual property is owned by a franchisor or operator under a management or franchise agreement. Generally the buyer is responsible for managing the use of any intellectual property owned by third parties. However in relation to a management or franchise agreement, consent will be required from the operator or franchisor if the buyer intends to operate the hotel on an as is basis. Due diligence will enable the buyer to understand the obligations of the hotel owner under the relevant arrangement.

One of the key features which distinguish a hotel sale transaction from a traditional property sale transaction relates to a hotel’s employees. In Australia, the employees of a hotel business are usually employed by the hotel owner and not by the hotel operator. Therefore where there is a sale of the hotel business, the incoming hotel owner will generally assume all the rights and responsibilities of the outgoing owner and employ the existing hotel staff. Accordingly, it is important for a hotel investor to undertake due diligence on key employment contracts of a hotel business in order to understand the scope of its rights, obligations and liabilities in respect of the hotel’s employees. Failure to do so may expose an incoming hotel owner to potential liability under employment laws.

Tourism is Australia’s largest services export and it contributes approximately A$35 billion to the country’s Gross Domestic Product.

Please click here to download the PDF of the report (451MB).

For further information, please contact:

Pauline Tan , Partner, Ashurst [email protected]

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AAA Tourism Confusion

The recent announcement of a change of management of the Star Ratings scheme under AAA Tourism has caused a great deal of angst and confusion within the accommodation sector but at the Accommodation Association of Australia there’s also been a little sigh of relief if only for the removal of the other AAA brand.

Since the rebranding of the Association, formerly known as HMAA, over 2 years ago, there has been some confusion over the acronym AAA which has been assigned to both organisations and intermixed on occasions.

“The rebranding of HMAA and launch of the Accommodation Association of Australia was done with the understanding that AAA Tourism were rebranding themselves back in 2011 to Club Tourism Publishing (CTP)”. Whilst CTP did come into effect, the effect was that it left the industry with two organisations referred to as AAA.” explains Accommodation Association of Australia, CEO, Richard Munro.

“It’s been quite interesting at times, we have had to deal with a range of issues from industry in relation to the STAR Rating system which we have had to refer them onto the correct entity and we also regularly received payments for AAA Tourism that we have had to refund of course”

The decision to dissolve the Club Tourism Publishing joint venture partnership and wind-up AAA Tourism publishing operations in Australia has no impact on Star Ratings with the assessors continuing to review properties according to the new scheme criteria launched in 2011 and remaining in place under AMS management.

The Accommodation Association is pleased to see the only widely used and objective ratings system in the country being maintained particularly following the November edition of CHOICE magazine which warned Australian travellers: “The boom in hotel review sites has given rise to the practice of ‘astroturfing’ or the writing of fake reviews by companies to promote their own accommodation.” The Accommodation Association of Australia (AAA) contributed to the Choice article highlighting the level of unreliability of consumer reviews experienced by the industry with our 2012 survey indicating that half the 381 respondents who took part regarding TripAdvisor reviews as inaccurate.

AAA is looking forward to working with their partners at AMS to ensure the STAR Rating system is still an effective, fair and accepted tool for the industry and most importantly travellers throughout Australia.

Source: Accommodation Association of Australia, 2 December 2013

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Prof. Sutheeshna Babu S

In this exhaustive study, the authors endeavour to review the existing scheme for award star rating for hotels in India. In doing so, efforts were also made to compare some leading schemes from across the world, chosen on the basis of leading inbound tourist markets for India, to bench-mark the criteria catalogue and assessment/evaluation process. Along with many fresh recommendations, the authors also pitch for a rating-scale based scheme to capture the sensibilities of 'service quality'

Rosanna Leung

Hotel service levels and pricing range are often denoted by the ''star'' rating system predominant in that country. This rating system depends considerably on travel agencies to disseminate information to consumers to assist them in their hotel selection. Given the popularity of online travel agencies (OTAs) and review websites, consumers can now compare published star and user ratings of hotels online to obtain a complete idea of the hotel service standards from the perspective of other users. This study attempted to analyze the difference among the star and user ratings published in eight popular OTAs. Findings showed that Priceline and Ctrip had the lowest website star ratings, whereas Bookings.com and Agoda had the highest for both local chain and independent hotels. A comparison of the star and user ratings indicated that Priceline, TripAdvisor, and Hotels.com had no statistical difference, but the other five OTAs exhibited statistical differences. The findings also indicated that Ctrip had higher user rating scores among the OTAs, possibly indicating that Chinese users rate hotels higher than other nationalities do.

Roberta Minazzi

Sovankanika Prum

Prof. Dr. Willy Legrand , Frans Melissen

This issue of Research in Hospitality Management is special in two ways: it is the first issue of Research in Hospitality Management to be published in open access, and it is entirely dedicated to sustainability. The choice for open access has been dictated by the desire of the editorial team to reach a wider public and initiate the process of ranking of the journal. Stenden Hotel Management School fully supports this strategic choice. Sustainability is a highly topical subject and has been for over twenty years. The same is true of “responsible tourism” and “sustainable hospitality” – concepts which have been discussed and explored by the industry and scientific communities alike. A key issue in these discussions relates to ethics. The term “ethics” goes back to ancient Greek philosophy. However, rather than concluding that this is a tired old theme, it is important to consider the new and continuing challenges which are currently affecting the planet and its populations. This includes economic, political, environmental, and social crises, the impact of which will only increase in years to come. Although the terminology linked to describing and tackling these challenges is not very new, its application to practical situations has become not only interesting, but also absolutely essential. Sustainable approaches to development and management of all industries are no longer an option but a necessity. This special issue recognises that this is also true for the hospitality industry and it therefore makes Sustainable Hospitality its main focus.

Professor Dimitrios Buhalis

Au, N., Buhalis, D., Law, R., 2014, Online Complaining Behavior for Mainland China Hotels: The Perception of Chinese and Non-Chinese Customers, International Journal of Hospitality and Tourism Administration, 15, pp.248-274. Examining hotel customer feedback is vital for effective service recovery and improvement. The main objective of this study is to analyze online complaints about hotels in Mainland China and to examine the relationship between culture and other factors that affect the intention to complain online. Content analysis was performed for 822 complaints about hotels in major Chinese cities drawn from TripAdvisor and Ctrip. Complaints made by Chinese and non-Chinese customers were compared and 11 major complaint categories were identified. A two-way contingency table analysis demonstrated that traveler age, hotel price, and travel partner significantly influenced the online complaints made. KEYWORDS complaints, e-complaints, online, hotel, mainland China

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Accreditation/Standards/Ratings of hotels explained

1.57 million domestic business listings..

Choosing the right hotel can be time-consuming, especially with such a huge range of choices and options available. Business travellers have different expectations and requirements than families on holiday. To assist with making the right choice, AAA Tourism Australia provides a guide to hotel accreditation and ratings throughout Australia.

The Star Rating System

AAA Tourism Australia is owned and governed by Australia’s seven state auto clubs. The Australian Star Rating Scheme is internationally recognised and is regularly reviewed to ensure it keeps in line with world standards. Knowing how this system works can take the guesswork out of booking your accommodation. The Star Rating Scheme covers all categories of accommodation in Australia, from backpacker lodgings to hotels. Hotels offer a range of occupancy rooms, often in a multi storey layout, and can range from contemporary establishments with restaurants, bars, valet parking and a range of services to Australian pub style accommodation. They are normally licensed and serve alcohol as part of their service. To receive a star rating, a hotel must meet all the requirements of that star rating level as well as meeting all requirements of lower levels. Many hotels exceed these basic levels and offer extra services such as cable TV, balconies, business services or meeting rooms.

Properties are regularly assessed by highly trained professionals based on three major categories – Facilities and Services, Cleanliness, and Quality and Condition. The assessment encompasses over 300 standards. The processes involved ensure that the star rating scheme is accurate, consistent and without bias. The ratings are defined as follows:

Five Star Rating

The Five Star Rating is the benchmark in Australian accommodation.
A Five Star hotel will be characterised by luxury appointments and exceptional facilities and levels of service.
A Five Star hotel will have 24 hour room service, valet parking, porterage and secretarial services.
With a Four Star Rating you can expect well-appointed accommodation with stylish decor and a high level of facilities and services.
A Four Star hotel will have rooms with en-suite bathrooms, air conditioning, and 16 hour room service and housekeeping.
A Three Star Rated hotel will have well-appointed and comfortable accommodation with a good range of facilities.
Decor in Three Star hotels may be dated but still in good condition and well maintained. The hotel may offer some business facilities.
A Two Star Rating indicates clean, basic accommodation with reasonably well maintained facilities. All hotel rooms will generally have an en-suite bathroom.
Hotels with a One Star Rating will offer simple, clean, no-frills style accommodation with limited facilities and often shared bathrooms.
A half star may be awarded to a hotel in any rating for offering a superior range of facilities.

Hotels may also receive an Eco Friendly Star Accreditation. The Eco Friendly Star Logo is awarded to hotels endeavouring to reduce their impact on the environment. This accreditation is based on energy efficiency, waste minimisation and management, water minimisation and guest education. The eco-friendly star rating was developed by AAA Tourism in conjunction with Earthcheck – the world’s leading environmental management and certification program for the tourism industry.

By providing a centrally managed, internationally recognised accreditation scheme, AAA Tourism allows travellers to compare ‘apples with apples’ and make informed decisions when booking a hotel. Although star ratings and accreditations are a huge help when choosing accommodation, for a more complete list of services and facilities offered, contact the hotel direct.

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Around 100 Moscow hotels exaggerate star ratings

As of now, 1020 Moscow hotels have gone through the classification process.

The Moscow Department of Sport and Tourism has been monitoring the star ratings of hotels and hostels to check if their state-assigned classifications are honest. As a result of the initiative, roughly 100 Moscow hotels have been found to have exaggerated star ratings, reports the Moscow Mayor’s Office . A large majority of the hotels have already corrected their information. According to the department, hotels awarded no stars were the most common perpetrators.

The head of the department, Nikolay Gulyayev, added that many cases were unintentional. A number of violations happened because hotels had not changed information on booking sites after their most recent star classification procedure. Hotel administrators must fix their mistake after receiving a message or call from the department. Any hotels that refuse to correct the information will be referred to the Federal Antimonopoly Service, which enforces federal law on economic competition. Thus far, the department head claims, this step has not been necessary.

As of now, 1020 Moscow hotels have gone through the classification process. The category “five star” is assigned to 30 hotels, “four star” to 80, “three star” to 209, “two star” to 109, “one star” to 41 and “no stars” to 551. The department is carrying out the star rating monitoring and classification in preparation for the World Cup in 2018, for which Moscow will serve as the main city.

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Moscow Travel Guide: Best Things to Do + More [2023]

· everything to know about visiting moscow, including the best things to do and how to get around. ·.

the red st basils church in moscow on a white winters day

Moscow is Russia’s vibrant capital city, and it also happens to be the largest city in all of Europe. The city’s long and infamous history makes it one of the most unique places we have ever visited.

The architecture ranges from centuries-old palaces to uniform, gray concrete buildings. The people range from cold and private to warm and welcoming. Moscow is a city is strong juxtapositions, and we learned a lot during our time there.

This post will break down all you need to know about visiting Moscow, including the best things to do, how to get there, how to get around, and more.

man and woman standing in front of main church in moscow

The Best Things to Do in Moscow

1. explore the red square.

The Red Square is the heart of Moscow. Most of the city’s top attractions can be found here, including just about everything on this list. The Kremlin, St. Basil’s Cathedral, and Lenin’s Mausoleum are all located here, and the State Historical Museum and GUM are not far from here, either.

The Red Square is a common home for parades, protests, and seasonal celebrations. There are massive Christmas celebrations here, with food vendors and carnival rides set up in numbers.

red orthodox church in moscow russia red square on a winter day

2. Check Out the Ziferblat

The Ziferblat is a café in Moscow that is unlike any café we have ever been to. While most cafes charge you for your drinks and food, the Ziferblat charges you for your time.

Upon arrival, you are given a clock. When you leave, the barista calculates how much time you spent in the café and charges you accordingly. This concept was created to help visitors to be more intentional with their time, and the cafe itself is incredibly charming.

For a detailed look at everything you need to know before you visit, make sure you read my post about visiting the Ziferblat Cafe in Moscow .

3. Marvel at St. Basil’s Cathedral

St. Basil’s Cathedral is one of the most iconic churches in the world, and it was the single thing we were most excited to see while in Moscow. Built almost 500 years ago, St. Basil’s Cathedral is recognized by its colorful domes and whimsical style. The church is of the Russian Orthodox faith, and the inside is just as wondrous as the outside.

St. Basil’s Cathedral is located on the edge of the Red Square, making it incredibly convenient to visit. Entrance for non-worshippers costs 800 rubles, and tickets can be bought at the church

woman in winter jacket standing in front of St Basils Russian Orthodox in moscow on a winter day

4. Explore the Kremlin

The Kremlin is the largest active fortress in Europe, and it is the site of most of Russia’s government affairs. In addition to government buildings, the Kremlin Complex is filled with courtyards, towers, and museums that are open to the public. If you have the time, you could spend a couple of days fully exploring all that there is to see in the Kremlin.

selfie of man and woman pointing to the Kremlin in Moscow

5. Walk Through Lenin’s Mausoleum

Vladimir Lenin is one of the most important figures in Russian history, and his body is located perfectly embalmed in a mausoleum in the Red Square. The Mausoleum is open to the public to visit, and as long as you are willing to go through a few security checks, it is easily one of the best things to do in Moscow. Its convenient location in the Red Square makes it a can’t miss attraction.

There is absolutely no photography allowed inside the Mausoleum. Do not test this rule.

red exterior of lenins mausoleum in moscow russia

6. Wander Along Arbat Street

The Arbat is a very popular street in Moscow that is lined with stores, cafes, and other touristy attractions. It is one of the oldest streets in the city, dating back to the 1400s. This street is both quaint and trendy, and there are many walking tours that introduce tourists to the neighborhood’s wonders and highlights.

man in sinter jacket standing in arbat street moscow at night with glistening white lights strung from the buildings

7. Catch a Show at the Bolshoi Theatre

As a lover of the arts, it is hard to think of Moscow and not think of ballet. Russia has always been a top dog in the world of fine arts, and Bolshoi Theater is one of the best places to catch a performance. We were lucky enough to attend an Opera here, and it is a venue that you don’t want to miss out on if you enjoy opera, ballet, or orchestral performances.

8. Visit the State Historical Museum

The State Historical Museum is one of the most respected museums in Moscow. Despite its name, it is not really focused on the history of Russia as a nation. Rather, it contains a collection of artifacts from all throughout Russia’s history.

The museum’s collection is very broad in nature. It houses some items from indigenous tribes that used to occupy the region, pieces collected by the Romanov family, and more.

9. Wander Around GUM

GUM is an absolutely massive mall within walking distance of the Red Square. It isn’t just the size that draws visitors here; it’s the sense of luxury. The mall is so beautiful inside, much like the metro stations.

While visiting a mall might not sound like it belongs on a bucket list, this mall does. You will not want to miss out on visiting GUM while in Moscow.

people walking inside GUM mall in russia with christmas lights

10. Admire the Cathedral of Christ the Saviour

While St. Basil’s Cathedral is the most iconic church in Moscow, it isn’t the only one. The Cathedral of Christ the Saviour is absolutely stunning, with massive golden domes. It is the tallest Orthodox church in the world, and it is the seat of the Orthodox Patriarch of Moscow.

It is located just about a mile from the Red Square, just south of the Kremlin Complex. You can walk to it from the Red Square in about 20 minutes.

How to Get to Moscow

Flying to moscow.

Moscow has three major international airports: Sheremetyevo (SVO) , Domodedovo (DMO) , and Vnukovo (VKO) . All three of them are directly connected to downtown Moscow by the Aeroexpress trains, which leave every 30 minutes throughout the day. By Aeroexpress train, you can expect to get to the city center in 25-45 minutes depending on the airport that you fly into.

Sheremetyevo is the biggest and busiest of the three airports, and it is the one you are most likely to fly into – especially if you are coming from outside of Europe or the Caucus region. We flew into Sheremetyevo on a direct flight from New York City.

I usually provide backup airport options, because flying right into the city isn’t always the cheapest way to get where you’re going. Unfortunately, when it comes to Moscow, don’t really have a choice other than to fly right into Moscow. It is a very remote city, and it is usually the cheapest place to fly into in Russia as a whole.

Since Sheremetyevo is so busy, you will probably find a great flight option anyway. I wrote in my post about finding cheap flights that using hub airports will lead to more affordable airfare, and the same logic applies here. Even though Russia’s national airline, Aeroflot, is no longer a member of the SkyTeam Alliance, Moscow is still a major hub connecting passengers from all over the world.

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Train or Bus to Moscow

Trains and buses are one of the most popular ways to get around Europe. However, they’re of very little use when you’re trying to get to Moscow.

Moscow is hundreds of miles from the nearest major cities. The only major European city that can even be reached within 8 hours on the ground is St. Petersburg, and even the Baltic capitals of Riga, Vilnius, and Tallinn are over 12 hours away.

If you want to get to Moscow, the best option is almost always to fly. While the train routes to Moscow are scenic, they simply take forever.

How to Get Around Moscow

METRO | TROLLEYS | TRAMS | BUSES

Moscow has one of the most memorable metro systems in the world. Its metro lines are very deep underground, and the stations are absolutely stunning. Each station has its own unique style, but all of them contain escalators that seem to go on forever.

turned-on chandelier on ceiling of moscow metro

The system was built in an effort to showcase the power of the Soviet Union and its bright future. The plans were a form of propaganda, but they resulted in what is still one of the most visually appealing subway systems on earth.

Moscow’s metro system isn’t just pretty. It is also very useful and accessible. The system has 17 lines that connect the city and its surrounding area.

But wait; there’s more!

The Moscow metro system is also incredibly affordable, with each ride costing less than a dollar. The metro is by far the best way to get around Moscow, as it is almost impossible to beat the connection times and the low cost to ride.

Tickets can be bought at electronic, English-speaking kiosks in stations, or directly from ticket counters at certain larger stations. There are also day passes available, which are a very solid option if you plan on riding the metro several times per day.

The metro is by far the best way to get around Moscow.

In addition to the metro system, Moscow also has a network of buses, trams, and trolleys. This system is nowhere near as convenient or well-connected as the metro, though, and is likely of little use to you during your trip. There is no Uber in Moscow, but a similar app named Yandex is available if you need a ride in a pinch.

How Many Days Do You Need in Moscow?

Moscow is the biggest city in all of Europe, and it is absolutely loaded with things to do. You could spend weeks in Moscow and still find new things to do. Of course, most travelers don’t have that kind of time to spend in one place!

I recommend spending no less than three full days in Moscow, and ideally closer to five or seven.

Moscow is very spread out, and it can take some time to get from one major point to another. There are also so many places that are nice to just sit back and relax, which is hard to do when you’re in a hurry trying to cram activities into just a few days.

If you only have a week to visit Russia, I’d advise spending all of the time in one city. If you decide to split your time between Moscow and St. Petersburg, I recommend not trying to squeeze in any day trips beyond those two cities.

When Is the Best Time of the Year to Visit Moscow?

There are two different ways to approach this question. Personally, I think the best time to visit Moscow is around Christmas and New Year’s Day. While the weather will be absolutely freezing, Moscow is a surreal winter wonderland in December and January.

We were in Moscow right before Christmas. While it was very cold, you can always bundle up. Exploring the Christmas markets and pop-up ice skating rinks throughout Moscow is one of my favorite memories from anywhere I’ve traveled, and I dream of going back to do it again.

If you aren’t fond of the cold, Moscow is beautiful in the summer. It tends to get pretty cold in the shoulder seasons, so if you want warm weather, you should plan to visit in the summer. Moscow actually gets pretty warm in July and August, and there are a bunch of fantastic places to soak up the sun within the city.

The best time to visit Moscow is either around Christmas or from late May to August.

group of people walking in moscow red square at night with christmas lights everywhere

Is Moscow Safe to Visit?

While Moscow is a truly wonderful city, there’s no denying that visiting Russia comes with risks. As the country is run by an infamous communist dictator, concerns about visiting are valid. While we didn’t experience any sort of threat or negative treatment during our time in Moscow, we visited in a peaceful time.

In our experience, Russia doesn’t seem to detain normal Americans or Westerners to use as pawns. As a regular person, as long as you don’t commit any crimes, there is a slim chance you will run into any issues. However, Russia will not hesitate to enforce its laws against foreigners, and illegal behaviors will likely land you in a very compromising position.

Russia will not hesitate to enforce its laws against foreigners, and illegal behaviors will likely land you in a very compromising position.

To make matters worse, Russia has a bad reputation for gang violence. While the Russian mafia has very little interest in normal Western tourists, they won’t hesitate to pick a fight with anyone who ventures into their sphere of influence. If you seek out illegal substances or activities, you could be a target of the mafia.

If you seek out illegal substances or activities, you could be a target of the mafia.

Finally, since Russia’s invasion of Ukraine, things are all very different. Russia is currently at war, and there are battles raging within 8 hours of Moscow. While it is still relatively safe to visit, that could change at any time as the war with Ukraine continues.

Is Moscow Worth Visiting?

Without a doubt, Moscow is worth visiting. It is one of the most unique major cities we have ever visited, and we hope to make it back one day. The Russian Orthodox churches are stunning, the city’s history is unlike any other, and the food is to die for.

While many visitors prefer St. Petersburg to Moscow, I think Moscow deserves a lot of hype of its own. Moscow is the beating heart of Russian culture and history, and it’s a place I highly recommend checking out if you have the chance.

woman in head scarf hugging bronze statue of angry bear

That’s all we have for you about Moscow! I hope this post was helpful as you plan your trip to Russia’s capital.

Have you been to Moscow? Or is this your first time visiting? Comment below if you have anything to add to our travel guide!

Hi, I'm Greg. I'm an avid traveler who has traveled to over 50 countries all around the world with my wife and kids. I've lived in Italy, Mexico, China, and the United States, and I dream of moving abroad again in the future. With this blog, I provide my audience with detailed destination guides to my favorite places and pro-tips to make travel as stress-free as possible.

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Star Ratings Australia
The accommodation you expect should be the accommodation you get. Star Ratings are an internationally recognised symbol for quality accommodation standards. They are used in more than 70 countries worldwide and reflect the cleanliness, quality and condition of guest facilities.
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Michael Harper. The AAA Star Rating System was established back in the 1950's when the Australian Auto Clubs began assessing accommodation on behalf of its members. Over time it grew to become the recognised symbol for quality accommodation standards. In recent years there has been much debate about the future relevance of the star ratings ...
Star Ratings program
The Star Ratings program is an internationally recognised symbol for quality accommodation standards. Used in more than 70 countries worldwide, Star Ratings reflect the cleanliness, quality, and condition of guest facilities. A trademarked emblem, the Star Ratings program awards accommodation providers exclusive rights to display the ...
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Star Ratings stand for independently reviewed quality standards and are easily defined: Properties that typify luxury across all areas of operation. Guests will enjoy an extensive range of facilities and comprehensive or highly personalised services. Properties at this level will display excellent design quality and attention to detail.
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The 'star' symbols are a licensed trademark and can only be used by properties that have been licensed to use them by the Australian Tourism Industry Council (ATIC). Star Ratings are your safeguard against 'self-ratings' - properties who have assessed their own quality standards. Star Ratings are awarded to six distinct accommodation categories ...
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26 February 2024. When motel leases were first introduced in the 90's, the star rating was a very relevant consideration. The AAA scheme was originally owned by the Australian Motoring Clubs and had been in operation since the 1950's. It was recognised as Australia's only independent, accredited accommodation scheme, and was seen as an ...
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AAA Tourism Confusion
The recent announcement of a change of management of the Star Ratings scheme under AAA Tourism has caused a great deal of angst and confusion within the accommodation sector but at the Accommodation Association of Australia there's also been a little sigh of relief if only for the removal of the other AAA brand. Since the rebranding of the Association, formerly known as HMAA, over 2 years ...
(PDF) HOTEL Standards & Guidelines Assessment Criteria for the
AAA Tourism The official STAR Ratings in Australia are the Trade Marks of AAA Tourism Pty Ltd. AAA Tourism manages the Australian STAR Rating Scheme under licence from Australian Motoring Services, a wholly owned subsidiary of the Australian Auto Clubs: the NRMA, RACV, RACQ, RAA, RACT and RAC. ... Criteria will result in the suspension of the ...
PDF Aaa Tourism Star Ratings System
AHA(WA) and TAA(WA) CEO, Bradley Woods, said with the impending launch of AAA Tourism's new star ratings system in July 2011 there is an opportunity for Australia's oldest star ratings system to instill confidence in the public and accommodation providers. "The accommodation industry has become gradually more dissatisfied with ...
Accreditation/Standards/Ratings of hotels explained
The Star Rating System. AAA Tourism Australia is owned and governed by Australia's seven state auto clubs. The Australian Star Rating Scheme is internationally recognised and is regularly reviewed to ensure it keeps in line with world standards. Knowing how this system works can take the guesswork out of booking your accommodation.
PDF Australian Tourism Investment
Rating systems which can be used by Australian hotels are governed by the AAA Tourism STAR Rating Scheme. Under the STAR Rating Scheme, hotels are rated between 1 to 5 stars based upon a hotel's compliance with the hotel ... standards established by AAA Tourism. The hotel sector is one of the most highly regulated areas compared to other ...
Entry Criteria
To be eligible to be Star Rated, you will need to meet the following criteria: The property holds all relevant insurances, including workers compensation as well as public liability, to the value of $10,000,000. The property complies with all relevant and applicable legal and/or regulatory obligations, including compliance with all Competition ...
PDF Quality Standards
Quality Standards. ndards for HotelsAA Hotel Services have been recognising accommodation since 1908 and first introduced the star rating scheme in 1912, recognising and rewarding establishments for the quality and range of their servic. s and facilities. The AA is the only pan-Britain organisation for quality rating and assessment to the hos.
Category outlines
Star Ratings are awarded to properties across six accommodation categories. Criteria can vary between categories. To be eligible for a Star Rating your property should meet the following category requirements: Hotel. Motel. Serviced Apartment. Hosted Accommodation. Caravan-Holiday Park. Self Catering.
How we quality assess accommodation
Recognising accommodation since 1908, we first introduced the star rating scheme in 1912. This enables us to inspect and reward establishments for the quality and range of their services and facilities. ... Reflecting the market place and consumer demand, we have recalibrated the star ratings to 3 to 5 Stars. Star ratings, while already well ...
Around 100 Moscow hotels exaggerate star ratings
On May 15, the Moscow Mayor's Office released results on the Department of Sport and Tourism's monitoring of hotel star classifications. Roughly 100 hotels have been found with exaggerated ...
Moscow Vacation Ideas
Book Everything in One Place. From cruises to day tours, buy all parts of your vacation in one transaction, or work with our nationwide network of AAA Travel Agents to secure the trip of your dreams! Plan your Moscow vacation, cruise or road trip. Trip Canvas gives you access to discounts, travel agency services and expertise from AAA Travel.
The 18 Best Luxury Moscow Hotels
Five Star Alliance: the best luxury hotels in Moscow. Great rates, stunning photos and easy, secure booking. ... STAR RATING. AMENITIES/FACILITIES. ACTIVITIES. BRAND NAME. STYLE. LOCALE. PERKS. ... The luxury travel experts at Five Star Alliance are available to help you 24 hours a day, 7 days a week. Call +17038360692. Trustpilot.
Fitch Revises City of Moscow's Outlook to Negative
The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(rus)' for National ratings in Russia.
Moscow Travel Guide: Best Things to Do + More [2023]
3. Marvel at St. Basil's Cathedral. St. Basil's Cathedral is one of the most iconic churches in the world, and it was the single thing we were most excited to see while in Moscow. Built almost 500 years ago, St. Basil's Cathedral is recognized by its colorful domes and whimsical style.