Dubai serves as a hub for various types of commerce. Many business owners from all over the world are drawn to it by its advantageous location, first-rate infrastructure, and prosperous business climate. When it comes to originality and innovation, the hotel industry is crucial.

Starting a hotel business in Dubai and investing in this sector are both viable options. We advise you to read through this blog before you begin making plans to open a hotel in Dubai. We have compiled all the data on How to Establish a Hotel Company in Dubai, how to obtain a hotel license in Dubai, and how much a Dubai hotel license will cost.

Benefits of Opening a Hotel in Dubai

Considering how popular tourism is becoming in the United Arab Emirates, opening a hotel is a surefire method to quadruple your investment. Below, we outline a few advantages of opening a hotel business in Dubai.

    1. Worldwide Events: In addition to being the MENA region’s commercial center, Dubai has grown over time to become the global center of commerce. In addition, the Dubai administration has made a number of actions that have turned the city into a popular venue for international events. The Dubai Expo is a good illustration of this. It was unheard of for a global event of this magnitude to draw 25 million visitors from 45 confirmed participating nations, but the UAE government managed to make the unthinkable happen through their forward-thinking preparations for company registration in Dubai.
    2. Talented and Skilled Workforce: Due to its diversity and multiculturalism, Dubai is home to a highly skilled and talented workforce. Each investor or business owner will be able to locate a candidate who properly fits the job description you need, allowing you to consider having several capabilities in any Dubai-based venture.

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  1. A Home Away from Home: Thousands of travelers arrive and depart from Dubai every day. It should come as no surprise that they will need lodging that is both affordable and comfortable. As a result, hotels and motels can be constructed specifically to cater to these customers.
  2. Simple Setup Procedure: Opening a hotel in Dubai is a relatively easy, hassle-free process. By following the guidelines established by the Department of Economic Development (DED), the main agency in charge of handling all the formalities related to the establishment of businesses in Dubai, investors can complete their tasks promptly.

What are the requirements and rules for opening a hotel in Dubai?

The Department of Tourism and Commerce Marketing has created specific guidelines for obtaining a hotel license in Dubai (DTCM). You must follow the following guidelines:

  • For the issuance of a hotel license in Dubai, you need to provide a bank guarantee.
  • To begin doing business in Dubai as a hotelier, you must safely store every visitor’s data.
  • You must make your packages and costs readily visible.
  • There must be a “Certificate of good conduct” on file for the hotel management.

How do I start a hotel in Dubai?

We want to draw your attention to a crucial point before we dive into the steps to launch a hotel business in Dubai. The legal and judicial criteria in Dubai are similar for practically all business kinds, although they differ for the hotel industry. In Dubai, a trade license is often required to conduct business; however, a tourist license is required to open a hotel. The following are the procedures for opening a hotel in Dubai:

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    1. Choose the ideal location: The first step in opening a hotel in Dubai is to choose an appropriate location. Make sure to conduct some study on the surrounding areas and population. Either the Dubai mainland or a free zone are viable options for hotel construction. You can speak with an expert business setup adviser in Dubai to receive assistance choosing the best site for your hotel.
    2. Choose the right type of hotel for your business model: Let’s first go through the various categories of hotel operations before talking about the steps and requirements for opening a hotel in Dubai. From 1 to 7 stars are assigned to the hotels. Although vacation homes can be basic or luxurious. Verify that your hotel belongs to one of the subcategories listed below. Your hotel needs to fall into one of the following groups:
      • Hotels in Luxury Resorts
      • Apartments in hotels
      • Vacation Homes
      • Youth Hostels
    3. Choose the best employees or managers for your company: You must select the ideal staff manager for your hotel business setup in Dubai, and you must ensure that they are adequately taught. The manager must hold the necessary credentials and authorized certificates. Then and only then can you choose the candidate to lead your hotel. Your hotel manager must be capable, whatever they may be. They should become experts in their field because they will be crucial in deciding what the hotel sector needs. They will handle everything, from maintaining the cleanliness and hygiene to overseeing the cuisine, staff, and level of services. Hence, be careful to choose the correct candidate for your needs while setting up a business in Dubai.

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  1. Obtain initial permission from the DED: To obtain initial permission from the Department of Economic Development(DED), you must have all required documentation on hand. The following papers must be on hand if you want to get permission to build a hotel in Dubai:
    • Fill out the DED application form, have all your partners sign it, and submit it.
    • You must supply copies of your passports as well as those of your business partners and staff.
    • It is required that the plot maps, site designs, and building completion certificate for the hotel property be submitted.
    • For the company formation of a hotel business in Dubai, you also need a categorization card.
    • Provide a copy of your manager’s passport, as well as letters of recommendation and academic transcripts.
    • Get a “Certificate of Conduct” for your hotel that has been authorized by the Department of Tourism and Commerce Marketing (DTCM).
    • Get authorization from the Dubai Police General Headquarters.
  2. Acquire Your Dubai Hotel License: Obtain every license and permit you need in Dubai. As previously said, you must have a tourism license, a commercial license from Dubai, and every other license in order before your hotel opens for operation. The following is a list of prerequisites to obtain this license:
    • Fee receipt of the approval.
    • Get approval from the Dubai Municipality (DM) and other legal authorities in order to start a business in Dubai in the areas of sanitation, waste management, public health, etc.

What do you need in terms of architecture to open a hotel in Dubai?

The following architectural specifications must be met by your hotel:

  • The kitchen at your hotel must be between 300 and 380 square feet in size.
  • To open a business in Dubai, make sure that there is a proper ventilation system and that the chimney is up to 2 meters higher than the closest building.
  • The entire ceiling, floor, and walls should be entirely fireproof, non-absorbent, and washable.
  • You must have a sink for washing utensils and a different sink for washing fruits, vegetables, and other food items. There should be a separate sink for the meat.
  • For a business to be established in Dubai, a storage facility for all kinds of food items is required.
  • Ensure that the drainage pipe is at least 2 inches away from the walls.

How much does a hotel license in Dubai cost?

In order to open a hotel in Dubai, you need to obtain a tourist license. Including service and local agent fees, a tourism license might run you anywhere from AED 35000 to AED 45000.


The most crucial details you need to be aware of for a hotel business setup in Dubai are the aforementioned laws, rules, and mandates. This blog will provide you with direction to ensure that everything is prepared before to opening day so that guests have no cause to criticize their stay at your hotel starting on day one.

You may always seek the assistance of our knowledgeable experts for company formation in Dubai at LegalRaasta if the procedure seems unclear or hard to you. Our knowledgeable consultants and legal counsel will give you the necessary information, complete support, and guidance if you want to open a new hotel in Dubai.