Guide to vacation rentals categories: How to get the desired number of stars?

Categorization of accommodation facilities is a legal procedure for approving and defining the level of quality of accommodation intended for short-term rental to third parties.

Accommodation facilities include those classified under the group “Other Hospitality Facilities for Accommodation,” as defined by the Regulation on Classification and Categorization of Hospitality Facilities within the group Other Accommodation Facilities (Official Gazette 54/16 and 69/17), namely:

• Room
• Apartment
• Studio apartment
• Holiday home
• Guesthouse (lodging house)
• Children’s holiday resort
• Hostel
• Mountain lodge
• Hunting lodge
• Pupil dormitory or Student dormitory or Akademis
• Robinson-style accommodation facility

How to distinguish between rooms, apartments, and other types of facilities?

Room– a facility providing accommodation services only.

Apartment– a facility providing accommodation services equipped in such a way that guests can prepare and consume their own food.

Studio apartment– a single-room unit where the guest can sleep, stay, prepare, and consume food.

Holiday home– a facility providing accommodation services and use of the surrounding property, equipped so that guests can prepare and consume their own food.

Each of the listed types of facilities must meet the minimum requirements defined by the aforementioned Regulation, including:

• Structure and floor area of the facility
• Accommodation capacity
• Serving of food, beverages, and drinks
• Facility signage, production, and procurement of signage plates

The category of an accommodation facility is expressed by a number of stars, indicating the level of quality and equipment. Rooms and studio apartments may be categorized with a minimum of two and a maximum of three stars. Apartments and holiday homes, on the other hand, may achieve a range from two to five stars, depending on compliance with the prescribed conditions and standards.

The number of stars is determined through the standard procedure of collecting and evaluating documentation and conducting an on-site inspection of the property, while the simplified procedure does not include a physical inspection.

All information regarding the required documentation and the application for issuing a categorization decision can be found here.

Difference between categorization stars

In this summarized version, a simple visual framework is presented showing what is required for different categories in terms of equipment, comfort, and additional amenities.

Difference between 3* and 4* for existing and new facilities

The private tourist accommodation market today is largely saturated with three- and four-star properties. Years of growth in tourism supply have created the need for improved supervision and stricter control of the categorization process in order to ensure that guests receive true value for their money. Accordingly, the criteria for obtaining categorization—especially for new facilities—have been amended and, in certain segments, made more stringent. Below is an overview of the differences in the procedure and requirements for obtaining three- and four-star categorization for existing and new facilities.

Floor area and bathrooms

For new facilities, particular attention is given to the minimum floor area of accommodation units, and the prescribed standards differ depending on the number of bedrooms and the level of categorization.

For example, an apartment module with two bedrooms for the 3* category must have at least 59 m² and include two bathrooms. For the 4* category, the same module requires a minimum of 69 m², two bathrooms, and an additional separate toilet.

For a module with one bedroom, the 3* category requires a minimum area of 38 m² and one bathroom. For the higher, 4* category, at least 44 m² is required, along with one bathroom and an additional separate toilet.

A detailed overview and comparison of 3*, 4*, and 5* categories for facilities can be found at the provided link.

How to adapt to the requirements?

It can be concluded that an apartment in a new building that obtains a three-star categorization is subject to stricter criteria, which are almost comparable to the standards of older properties in higher categories. When comparing the requirements, the differences are relatively small—both between existing and new facilities and between three- and four-star categories. However, owners of new properties must invest additional resources and attention to meet and maintain the prescribed standard.

If aiming for a higher categorization, special attention should be given to the total floor area of the facility, the number of rooms and bathrooms, bed dimensions, as well as the equipment and amenities within the accommodation units.

Tourism is constantly evolving, and as guest habits and expectations change year after year, business standards evolve as well. Therefore, it is realistic to expect that additional adjustments or new rules related to the categorization process will be introduced in the future. Regardless of whether a property has three or four stars, the key to success remains the same—emphasis on a high level of quality, an individualized approach to guests, and the creation of a positive and authentic experience that leaves a lasting impression.

If you have categorized your apartment or holiday home but do not have the time to optimally position it or maintain high ratings across all sales channels, contact us at +385 91 177 0310 or via email at info@litto.agency.