Hoshi means 'star' in Japanese, but the 'star' in the Hoshi Matsuri does not mean a star shining in the night sky.
When described in this context, it represents 'the star of destiny.'
It is this star that governs the joys and woes we encounter.
In 'esoteric Buddhism,' one of the Buddhist schools, an excellent way to determine the cycle of people's luck was discovered by analyzing the star of destiny. This is called 'Mikkyo Senseijyutsu' (fortune-telling by Agon Buddhist astrology).

In addition to determining personal destiny, it is also one of the methods of improving a person's luck, by turning around his/her misfortune and further boosting the streak of good fortune. This is believed to be one of the ultimate secret methods of esoteric Buddhist prayer called 'Jokashofuku' – the miracle-working secret method of eliminating evil and changing luck for the better. This is the 'Hoshi Matsuri Goma-kuyo' or Fire Rites ceremony in which the 'stars' are dedicated by burning goma on the day of setsubun, which is a New Year Day in the lunar calendar.

By the way, the 'star' described here actually comes in two types; One is a star representing your destiny by birth (which determines how big or small your fortunes will be as well as the level of intensity of your fortune or misfortune) and the other shows your luck that comes yearly (how your luck manifests itself and how strong it is at the time). The star of destiny that a person has by birth is called luck (honmyojo) and the star coming to a person in a particular year is called a streak (tonenzokusho). In the Hoshi Matsuri Festival, both stars are enshrined and prayers for individuals' happiness and for peace and harmony in the family are offered. In addition, prayers for world peace are offered through the secret process of Shinto and Buddhist realms (a secret method unique to Agon Shugen, enshrining the gods and Buddha), by placing Shinsei Busshari Son (Authentic Buddha's relics, which are the ultimate principal Buddhist image).