The Academy was formed in 1989 as an offspring of a restaurant rating bureau, founded in 1949. The Academy is comprised of trustees and members who consist of industry professionals and world travelers from the United States, International communities and financial institutions. They recommend hotels, restaurants, airlines, exceptional chefs, and recipients who merit our Lifetime Achievement award. Anonymously members visit establishments evaluating ambiance, gastronomy and most importantly hospitality, and cleanliness to ensure that the selected establishments continuously maintain these high standards set by the Academy. After a final selection is made, nominations are voted upon by the Academy's Board of Trustees. Only the finest in each category and classification are then designated as an American Academy Five Star Diamond recipient. A presentation of the American Academy Five Star Diamond Award is requested to take place in the selected establishment where a final site inspection can be seen by a board member or a Regional Director and a formal introduction of the Academy can take place.

The decisions of The American Academy of Hospitality Sciences are solely based on whether the establishment demonstrates a commitment to hospitality in every aspect of its operation. This standard of dedication is what sets the American Academy Five Star Diamond Award apart from all others.