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The Irish Hotel & Guesthouse Classification system was last revised in 1996 by Failte Ireland in conjunction with the IHF. It is a voluntary system which properties can opt in or out of. However there are additional legal criteria to be met if the property wants to use the term "hotel" or "guesthouse". These are set down in the Registration criteria.

Failte Ireland operates the current classification system which has 5 categories - 1, 2, 3 4 & 5 star in hotels and 1,2,3 & 4 stars in guesthouses and there is a comprehensive list of criteria which the property must meet to achieve each category.

Standards are maintained by an annual inspection including an overnight stay by an independent company which is on contract to Failte Ireland. The current inspection company is Tourist Accommodation Management Services or TAMS.

The Irish Classification system is operating for 9 years now and is in the process of being changed completely. It is currently under negotiation and it is expected to be in place by mid 2006.