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How to Start a Hotel Business in Dubai?

Start a Hotel Business in Dubai

Dubai stands as a global hub for diverse business ventures, thanks to its strategic location, outstanding infrastructure, and an enticingly lucrative business environment that consistently attracts entrepreneurs worldwide. Within this vibrant landscape, the hospitality sector emerges as a key player, driving creativity and innovation. The potential for investment is ripe, particularly in the prospect of starting a hotel business in Dubai.

Prior to delving into the planning stages of establishing your hotel in this dynamic city, we recommend perusing this blog. It serves as a comprehensive resource, offering detailed insights into the intricacies of starting a hotel business in Dubai in 2024 – encompassing the process of acquiring a hotel license and understanding the associated costs. Familiarize yourself with this valuable information to ensure a well-informed and successful venture into Dubai’s thriving hospitality industry.

What are the Types of Hotel Business Setup in Dubai?

In Dubai, the options for setting up a hotel business are diverse and cater to various preferences. Consider the following categories when initiating a hotel business:

  1. Luxury Resorts
  2. Hotels
  3. Hotel Apartments
  4. Hostels for Youth
  5. Guest Houses
  6. Holiday Houses

It’s noteworthy that hotels are classified on a scale of 1 to 7 stars, signifying different levels of luxury and services. Similarly, holiday houses are categorized as either standard or deluxe. Ensure that your hotel aligns with and falls into one of these specified categories for a well-defined business setup in Dubai.

What are the Rules and Regulations to Start a Hotel Business in Dubai?

To commence a hotel business in Dubai, it is imperative to comply with the rules and regulations set forth by the Department of Tourism and Commerce Marketing (DTCM). Here are the key guidelines to adhere to:

  1. Bank Guarantee Requirement:
    • A bank guarantee is mandatory for the issuance of a hotel license in Dubai.
  2. Minimum Room Size:
    • Each hotel room must have a minimum size of 30 square meters to meet the stipulated standards.
  3. Guest Data Security:
    • It is crucial to securely store the data of every guest, ensuring compliance with privacy and data protection regulations.
  4. Transparent Pricing:
    • Clearly display the packages and prices you offer, promoting transparency and providing clarity to your guests.
  5. Manager’s Certification:
    • The appointed manager of your hotel must possess a “Certificate of Good Conduct,” affirming their suitability for the role.
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What is the Process to Start a Hotel Business in Dubai?

Initiating a hotel business in Dubai involves a specific process distinct from general business setups, primarily requiring a tourism license. Here is a step-by-step guide to help you navigate through the establishment of a hotel in Dubai:

Step 1. Choose a Location:

Select an appropriate location for your hotel, considering factors such as localities and the surrounding demographic. You have the option to set up in the Dubai mainland or within a free zone. Seek guidance from experienced business consultants to make an informed decision.

Step 2. Hire a Manager:

Appoint a qualified manager for your hotel, ensuring they possess the necessary qualifications and approved certifications. The manager plays a pivotal role in decision-making across various aspects of the hotel industry, from hygiene and staff management to service quality.

Step 3. Acquire Initial Approval:

Gather the necessary documents to obtain initial approval from the Department of Economic Development (DED). Required documents include:

  • Completed application form signed by all partners.
  • Passport copies of partners and employees.
  • Plot maps, blueprints, and building completion certificate for the hotel property.
  • Classification card for hotel business setup in dubai.
  • Manager’s passport copy, educational certificates, experience letters.
  • Approved “Certificate of Conduct” from the Department of Tourism and Commerce Marketing (DTCM).
  • Approval from Dubai General Police Headquarters.

Step 4. Get Your Hotel License in Dubai:

Obtain a tourism license, which is essential for starting a hotel business in Dubai. The requirements for this license include:

  • Presentation of the fee receipt for initial approval.
  • Submission of trade name certificate and related payment receipts.
  • No Objection Certificate for international hotel groups.
  • Registration on the Ejari platform, along with the tenancy contract and unique Ejari number.
  • Approval of the tenancy contract by the landlord for a minimum of ninety days.
  • Consent from Dubai Municipality (DM) and other legal departments for aspects like sanitation, waste management, and public health.

How to Obtain a Hotel License in Dubai?

To secure a hotel license in Dubai and establish your hotel business, follow these essential steps:

  1. Register Your Business:
    • Initiate the process by registering your hotel company with the Department of Economic Development (DED) in Dubai. Submit necessary documents such as your trade license, business strategy, feasibility study, and leasing agreement.
  2. Obtain Approval from DTCM:
  3. Obtain a Bank Guarantee:
    • Provide DTCM with a bank guarantee, the amount of which is determined by the size and type of your hotel. This is a crucial step in obtaining a hotel license in Dubai.
  4. Inspections:
    • Subject your hotel property to inspections conducted by DTCM to ensure compliance with health and safety regulations, fire safety standards, and other relevant criteria.
  5. Final Approval:
    • Upon successful completion of all inspections and adherence to regulatory standards, the DTCM will grant your hotel license in Dubai.
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The Cost of Starting a Hotel Business in Dubai

To establish a hotel business in Dubai, obtaining a tourism license is imperative. The cost of a tourism license typically ranges between AED 35,000 to AED 45,000, encompassing both the service fee and the local agent fee. Ensure you factor in these expenses when budgeting for your hotel business setup in Dubai.

What are The Architectural Requirements to Start a Hotel Business in Dubai?

To meet the architectural prerequisites for initiating a hotel business in Dubai, ensure that your hotel adheres to the following requirements:

1. Kitchen Area:

The hotel’s kitchen must encompass an area ranging from 300 to 380 square feet.

2. Ventilation and Chimney:

Implement a robust ventilation system, and the chimney should extend up to 2 meters higher than the nearest building for effective air circulation.

3. Fireproof Construction:

All walls, floors, and roofs must be constructed with washable, non-absorbent, and entirely fireproof materials to ensure safety.

4. Basin Requirements:

Install separate basins for various kitchen activities, including washing utensils, cleaning vegetables, fruits, and other food items. A designated basin for meat should also be provided.

5. Food Storage Facility:

A dedicated storage facility for all types of food items is mandatory, ensuring proper organization and adherence to hygiene standards.

6. Drainage System:

Ensure that the drainage pipes are positioned at a distance of at least 2 inches from the walls, promoting effective drainage and preventing potential issues.

Take Your First Step to Start a Hotel Business in Dubai

Embarking on the journey to initiate a hotel business in Dubai involves navigating through crucial rules, regulations, and legal requirements. While the process may appear intricate, seeking assistance from seasoned professionals can simplify and streamline it. At Company Setup Consultants, our expert business consultants stand ready to guide you through every step of the hotel business setup in Dubai.

If you aspire to launch a new hotel in Dubai, our experienced consultants and legal advisers are equipped to furnish you with comprehensive information, unwavering support, and sound advice. Connect with us, and we will handle the intricacies, ensuring a seamless and successful establishment of your hotel business in Dubai.

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