Dubai, with its thriving economy, strategic location, and world-class infrastructure, is a magnet for entrepreneurs from around the globe. In this vibrant business hub, the hospitality industry stands out as a sector ripe with investment opportunities. If you’re considering starting a hotel business in Dubai, you’re on the right path. This comprehensive guide will walk you through the process of establishing your hotel business, obtaining a hotel license in Dubai, and understanding the hotel license costs.

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Types of Hotel Business Setup in Dubai:

Before delving into the details of how to start a hotel business in Dubai, it’s important to understand the various types of hotel establishments you can set up. Dubai offers a diverse range of options, including:

  1. Luxury Resorts: Ideal for creating an opulent and exclusive retreat.
  2. Hotels: A standard option for providing accommodation to tourists and business travellers.
  3. Hotel Apartments: Suitable for those who wish to combine the comforts of home with the amenities of a hotel.
  4. Hostels for Youth: Catering to budget-conscious travellers and backpackers.
  5. Guest Houses: Offering a more personalized and homely experience.
  6. Holiday Houses: Available in standard and deluxe categories, providing flexibility for various traveller preferences.

It’s worth noting that hotels in Dubai are rated from 1 to 7 stars, allowing you to align your establishment with your desired level of luxury and service.

Rules and Regulations for Starting a Hotel Business in Dubai:

When establishing a hotel business in Dubai, it’s crucial to adhere to the rules and regulations set forth by the Department of Tourism and Commerce Marketing (DTCM). Here are some key regulations you must follow:

1. Bank Guarantee:

To obtain a hotel license in Dubai, you will need to provide a bank guarantee. This financial commitment serves as a security measure for the authorities. In case your hotel business faces any issues or disputes, the bank guarantee can be utilized to cover potential liabilities. The amount of the bank guarantee may vary depending on the size and category of your hotel.

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2. Minimum Room Size:

The Department of Tourism and Commerce Marketing (DTCM) stipulates that the minimum size of a hotel room in Dubai must be at least 30 square meters. This regulation is in place to ensure that guests have an adequate and comfortable living space during their stay. It’s essential to adhere to this requirement when designing or renovating your hotel rooms.

3. Guest Data Security:

Protecting guest data is a critical aspect of hotel operations. The DTCM mandates that you must securely store the data of every guest staying at your hotel. This includes personal information, identification documents, and any other sensitive data. Implementing robust data security measures and data privacy protocols is essential to meet this requirement while ensuring the confidentiality and safety of your guests’ information.

4. Transparent Pricing:

Transparency in pricing is a fundamental aspect of providing excellent service in the hotel industry. The DTCM requires that you clearly display your packages and prices for services and accommodations. This transparency ensures that guests have a clear understanding of the costs associated with their stay. Whether it’s room rates, additional services, or amenities, providing clear and accurate pricing information is not only a regulatory requirement but also a best practice in the hospitality sector.

5. Qualified Manager:

In order to set up a hotel business in Dubai, your hotel must have a manager who meets specific qualifications and possesses a “Certificate of Good Conduct.” The manager plays a pivotal role in the day-to-day operations of the hotel, including managing staff, ensuring high-quality service, maintaining cleanliness and hygiene standards, and overseeing guest satisfaction. To fulfill this requirement, the appointed manager should have relevant educational qualifications, experience in the hotel industry, and must have obtained the necessary clearance or certification confirming their good conduct.

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Compliance with these regulations is essential for obtaining and maintaining a hotel license in Dubai. It ensures the safety, security, and quality of service provided to guests and upholds the reputation of your hotel in this competitive industry. Failing to meet these requirements can lead to legal issues, fines, or even the revocation of your hotel license. Therefore, it’s vital to understand and follow these rules meticulously when establishing and operating your hotel business in Dubai.

Which Type of Process Follow To Start Hotel Business In Dubai?

Below written is a guide to help you set up your hotel business in Dubai:

1. Choose a Location

Selecting the right location for your hotel is a pivotal decision. You can opt for a location in the Dubai mainland or within a free zone. Seek the guidance of experienced business consultants to assist you in choosing the most suitable location for your hotel.

2. Appoint a Competent Manager

For your hotel business setup in Dubai, you need to appoint a qualified manager. The manager should have the requisite qualifications and approved certifications to assume this role. They will be responsible for overseeing various aspects of your hotel’s operations, from ensuring cleanliness and hygiene to managing staff and service quality.

3. Acquire Initial Approval

To initiate your hotel business setup in Dubai, prepare all the necessary documents and secure initial approval from the Department of Economic Development (DED). The following documents are required:

  • A completed application form signed by all business partners.
  • Passport copies of you, your business partners, and employees.
  • Plot maps, blueprints, and building completion certificates for the hotel property.
  • A classification card for your hotel business.
  • Passport copy of your manager, along with educational certificates and experience letters.
  • An approved “Certificate of Conduct” issued by the Department of Tourism and Commerce Marketing (DTCM).
  • Approval from the Dubai General Police Headquarters.

4. Obtain Your Hotel License in Dubai

For a hotel business setup in Dubai, you need a tourism license rather than a standard trade license. To obtain this license, you must:

  • Present the fee receipt for the initial approval.
  • Submit the trade name certificate and relevant payment receipts.
  • Secure a No Objection Certificate if you are part of an international hotel group or chain.
  • Register on the Ejari platform and obtain your tenancy contract along with a unique Ejari number.
  • Ensure your tenancy contract is approved by the landlord for a minimum of ninety days.
  • Acquire approvals from Dubai Municipality (DM) and other relevant departments regarding sanitation, waste management, public health, and more.

Understanding the Hotel License Cost in Dubai:

To start a hotel business in Dubai, you must obtain a tourism license. The cost of a tourism license typically ranges from AED 35,000 to AED 45,000, inclusive of service fees and local agent charges.

Architectural Requirements for Your Hotel Business:

To meet the necessary architectural standards, your hotel should comply with specific requirements, such as:

  • Hotel kitchens must have an area of at least 30 to 380 square feet.
  • Adequate ventilation and chimneys that extend up to 2 meters higher than the nearest building.
  • All surfaces (walls, floors, and roofs) should be washable, non-absorbent, and fireproof.
  • Provision of separate basins for washing utensils, cleaning fruits and vegetables, and handling meat.
  • Adequate storage facilities for different food items.
  • Proper placement of drainage pipes at least 2 inches away from walls.

Seek Professional Guidance for Your Hotel Business Setup

While the process of setting up a hotel business in Dubai may seem complex, you don’t have to navigate it alone. Expert business consultants, like those at LegalRaasta, are well-equipped to provide you with the necessary guidance and support. Their experienced advisors can ensure that your hotel business setup complies with all legal requirements and operates smoothly.

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In conclusion, starting a hotel business in Dubai can be a rewarding endeavour, given the city’s thriving tourism industry and strategic location. By following the guidelines and regulations, you can establish a successful hotel that caters to both tourists and business travellers. For a seamless experience and expert assistance throughout your hotel business setup journey, consider partnering with professionals who can help you make informed decisions, ensuring your venture’s success. Connect with LegalRaasta today to embark on your hotel business journey in Dubai.

Contact the LegalRaasta Experts to learn more about setting up a hotel business in Dubai and explore our expert services.