Dubai is the hub for various types of businesses. It offers a very prime location, strong infrastructure, and a profitable business environment that attracts entrepreneurs from across the globe. Among the most promising sectors is hospitality, which plays a significant role in driving creativity, innovation, and tourism. For investors seeking high returns, starting a hotel business in Dubai presents a lucrative opportunity.
Before starting a hotel business in Dubai, we recommend reading this blog thoroughly. We’ve compiled all the essential information you need to know in 2025, including how to obtain a hotel license in Dubai, the cost of a hotel license in Dubai, and step-by-step guidance on setting up your hospitality venture successfully.
Benefits to Start a Hotel Business in Dubai
Dubai is renowned for its tourism, making it a prime location for entrepreneurs seeking to establish a hotel business in the city. With millions of tourists, business travellers, and event attendees visiting the city every year, the hotel business in Dubai offers significant growth opportunities. Here are some of the top benefits if you’re planning to start a hotel in Dubai:1. Growing Tourism Industry
Dubai welcomes over 17 million tourists annually, ensuring a steady demand for hospitality services. This makes it profitable to open a hotel in Dubai, particularly in popular areas such as Downtown, Palm Jumeirah, or Dubai Marina.2. High Return on Investment
The occupancy rates in Dubai hotels remain consistently high, offering investors attractive ROI. Whether you're setting up a boutique hotel or a luxury resort, the potential to earn big is high when you start a hotel business in Dubai.3. Government Support and Business-Friendly Policies
Dubai’s government offers substantial support for investors in the hospitality sector. The process of obtaining a Dubai hotel license is streamlined, especially when working with business setup consultants for a hospitality business setup in the UAE.4. Prime Global Location
Dubai’s location connects Asia, Europe, and Africa, making it a travel hub. This positioning gives your hotel access to global travellers all year round, a massive advantage if you want to start a hotel in Dubai.5. Modern Infrastructure and Amenities
The city boasts infrastructure, transportation, and technology that support the growth of the hotel business in Dubai. From smart city features to luxury shopping and entertainment venues, everything adds value to your hospitality venture.6. Diverse Market and International Events
Dubai hosts countless international expos, business summits, and festivals, ensuring a diverse clientele. Opening a hotel here allows you to get into both leisure and business travel markets, a key reason many choose to open a hotel in Dubai.7. Flexible Business Setup Options
Whether you opt for a mainland license or establish a presence in a free zone, Dubai offers flexible options for setting up a hospitality business in the UAE. The city accommodates both small-scale entrepreneurs and large investors in the hospitality industry.Types of Hotel Business Setup in Dubai
Dubai’s thriving tourism industry, strong infrastructure, and investor-friendly policies make it a hotspot for the hospitality sector. If you're planning to start a hotel business in Dubai, understanding the different types of hotel setups is the first step to success. Whether you aim to run a boutique hotel or a luxury resort, selecting the right model will have a significant impact on your investment, operations, and profitability.1. Hotel Establishment (Standard Hotels)
These are full-service accommodations offering a variety of room types, dining options, and recreational services. They’re ideal if you want to start a hotel in Dubai that serves both tourists and business travellers.2. Resorts
Perfect for beachfront or desert locations, resorts provide luxurious stays with spa services, water sports, and fine dining. It's a great model for those who wish to open a hotel in Dubai that targets high-end international guests.3. Hotel Apartments
This model combines hospitality and real estate. Guests get home-like amenities with the benefits of hotel services. It's a growing trend in the hotel business in Dubai, especially among long-term business travellers and families.4. Boutique Hotels
Smaller, stylish, and often theme-based, boutique hotels offer personalised experiences. If you want to start a hotel business in Dubai with a unique concept, this setup is perfect for niche tourism.5. Luxury Hotels / 5-Star Hotels
Known for premium services, exclusive locations, and elite clientele, luxury hotels are capital-intensive but highly profitable. They require a valid Dubai hotel license and compliance with the strict standards outlined in the guidelines for setting up a hospitality business.6. Eco-Friendly or Sustainable Hotels
Catering eco-conscious travellers, these hotels follow sustainable practices. They are increasingly popular as Dubai promotes green business practices in line with global tourism trends. The opportunities to start a hotel business in Dubai are vast and varied. Whether you aim to open a hotel in Dubai targeting budget travellers or luxury seekers, understanding these business models is vital. With the correct setup, proper licensing, and a prime location, your hotel venture in Dubai can thrive in this dynamic and competitive market.Rules and Regulations to Start a Hotel Business in Dubai
To obtain a hotel license in Dubai, specific rules and regulations have been established by the Department of Tourism and Commerce Marketing (DTCM). You must adhere to the following rules:- You are required to provide a bank guarantee for the issuance of a hotel license in Dubai.
- The minimum size of a hotel room must be at least 30 square meters.
- You must securely store every guest’s data.
- The packages and prices you offer must be displayed.
- The manager of your hotel must have a “Certificate of good conduct”.
How to Start a Hotel Business in Dubai?
Starting a hotel business in Dubai offers tremendous potential, due to the city’s booming tourism and hospitality industry. However, unlike most other companies that require only a trade license, setting up a hotel in Dubai requires a tourism license and compliance with regulations specific to the hospitality sector. Here are the key steps to successfully start a hotel in Dubai:Step 1: Choose the Right Location
To open a hotel in Dubai, selecting the ideal location is crucial. You can establish your hotel either in the Dubai mainland or a Free Zone, depending on your business goals and target clientele.- Conduct market research on different areas and their demographics.
- Consider proximity to tourist attractions, transport, and commercial hubs.
- Consult with experienced hospitality business setup consultants in the UAE for location planning.
Step 2: Appoint a Qualified Hotel Manager
As part of the hotel setup process, it is mandatory to hire a certified hotel manager with relevant qualifications and experience.- Ensure the manager holds recognised hospitality certifications.
- The manager will oversee operations, including hygiene, food service, staff management, and guest satisfaction.
- Their credentials (education and experience) must be submitted during the licensing process.
Step 3: Obtain Initial Approvals
Before applying for a license, you must secure preliminary approval from the Department of Economic Development (DED). Prepare the following documents:- Completed application form signed by all partners.
- Passport copies of all owners, partners, and hotel staff.
- Plot plan, building layout, and completion certificate for the property.
- Classification card (obtained from the Department of Tourism and Commerce Marketing – DTCM).
- Manager’s educational certificates, experience letter, and passport copy.
- Certificate of Conduct for the hotel (issued by DTCM).
- Approval from Dubai Police General Headquarters.
Step 4: Apply for a Dubai Hotel License
To officially start a hotel business in Dubai, you must obtain a tourism license, not just a trade license. Follow these steps:- Submit proof of initial approval and pay the applicable fees.
- Provide your trade name certificate and payment receipts.
- If part of an international hotel chain, obtain a No Objection Certificate (NOC) from the parent company.
- Register your tenancy contract on the Ejari platform and acquire a unique Ejari number.
- The tenancy contract must be for a minimum of 90 days and approved by the landlord.
- Secure approvals from the Dubai Municipality (DM) and other authorities for waste management, sanitation, public health, and related compliance.
Hotel License Cost in Dubai
To start a hotel business in Dubai, one of the primary legal requirements is obtaining a Tourism License, issued by the Department of Tourism and Commerce Marketing (DTCM). This license is essential for operating any hospitality-related establishment, including hotels, resorts, boutique hotels, and guesthouses. The cost of a tourism license in Dubai generally ranges between AED 35,000* to AED 45,000. This estimate typically includes various components such as:- License issuance fee
- Administrative and government charges
- Initial approvals and documentation processing
What are The Architectural Requirements to Start a Hotel Business in Dubai?
Your hotel must meet the following architectural requirements:- Your hotel’s kitchen must have an area of at least 300 to 380 square feet.
- Ensure that there is a good ventilation facility, and the chimney is at least 2 meters higher than the nearest building.
- All the walls, floor, and roof should be washable, non-absorbent, and completely fireproof.
- You must provide a basin for washing utensils and a separate basin for cleaning vegetables, fruits, and other food items. The basin for meat should be separated.
- Having a storage facility for all types of food items is mandatory.
- Ensure the drainage pipe is positioned at least 2 inches away from the walls.