The main objective of this study was to assess brand equity dimensions in the context of consumer’s perception of star rated hotels in Bahir Dar city. This research fills the existing very limited information by increasing the body of knowledge related to brand equity dimensions in the context of consumer’s perception of star rated hotels. This study has a significant contribution towards closing the perceived gap in the existing literature. Knowledge gained in this study has been helpful to customers, hotel owner and hotel managers to identify the major factors that may determine hotels brand equity in star rated hotels. The study used descriptive survey research design and also used a quantitative research designed. The researcher was distributed a total of 384 questionnaires by personal contact and all questioners were returned. For the analysis of this study Pearson correlation and Multiple Linear Regression methods were employed. To analyze the data, statistical package software (SPSS version 22) was used. . The result of this study found that there is a positive and significant correlation that brand association, perceived quality, brand loyalty, and brand awareness increases positively and customers based brand equity increase positively. Moreover, the result as shown in the regression model summary table the combination brand awareness, brand association, perceived quality and brand loyalty explained 44% of customers based brand equity of rated stars hotel. The F-result showed that in the ANOVA table indicates 74.15 and also the significance value is 0.00 which is less than 0.05 thus the model is statistically significance in predicting the on customers based brand equity of rated stars hotel..