09 Aug How to Start a Hotel Business in Dubai?
Dubai is the hub for all kinds of business. It offers a strategic location, excellent infrastructure, and a lucrative business environment that attracts many entrepreneurs across the globe. The hospitality sector has a major role to play when it comes to creativity and innovation. This industry is ripe for investment and starting a hotel business in Dubai.
Before you start planning to set up a hotel in Dubai, we suggest you go through this blog. We have gathered all the information on How to Start a Hotel Business in Dubai in 2022, get a hotel license in Dubai, and hotel license cost in Dubai.
What are the Types of Hotel Business Setup in Dubai?
You can start a hotel business in Dubai under the following categories:
- Luxury Resorts
- Hotel Apartments
- Hostels for Youth
- Guest Houses
- Holiday Houses
The hotels are rated from 1 to 7 stars. While holiday houses are either standard or deluxe. Make sure that your hotel falls in any one of the categories mentioned above.
What are the Rules and Regulations to Start a Hotel Business in Dubai?
To acquire a hotel license in Dubai, there are certain rules and regulations established by the Department of Tourism and Commerce Marketing (DTCM). You must adhere to the below-mentioned rules:
- You require a bank guarantee for the issuance of a hotel license in Dubai.
- The minimum size of a hotel room must at least be 30 square meters.
- You must securely store every guest’s data.
- The packages and prices you offer must be clearly displayed.
- The manager of your hotel must have a “Certificate of good conduct”.
What is the Process to Start a Hotel Business in Dubai?
Before jumping into the process to start a hotel business in Dubai, we want to bring an important detail to your attention. Although almost all types of businesses in Dubai have the same legal and judicial requirements, they are different in the hotel business. Generally, you need a trade license to do business in Dubai, however, to start a hotel business in Dubai, you need a tourism license. Below mentioned are the steps to set up a hotel in Dubai:
1. Choose a Location
To start a hotel business in Dubai, you must select a suitable location for your hotel. Make sure to do some research about the localities and the people around. You can choose to set up a hotel in the Dubai mainland or in a free zone. You can get in touch with experienced business consultants in Dubai to help you select an appropriate location for your hotel.
2. Hire a Manager
For a hotel business setup in Dubai, you need to appoint a manager. It is mandatory for the manager to have the relevant qualifications and approved certifications. Then only can you appoint the candidate as the manager for your hotel?
Whoever you choose to be your hotel manager, they must be capable. It is important that they master their craft as they will play a key role in making decisions about the requirements of the hotel industry. From keeping a check on the cleanliness and hygiene to food and staff till the quality of services, everything will be managed by them. So, make sure you hire the right fit as per your needs.
3. Acquire Initial Approval
You must keep all the necessary documents ready to get initial approval from the Department of Economic Development (DED). You need to keep the following documents handy to acquire approval to set up a hotel in Dubai:
- Fill and submit an application form provided by the DED and get it signed by all your partners.
- You need to submit the passport copies of you and your business partners plus the employees.
- Submitting the plot maps, blueprints of the location, and building completion certificate for the hotel property is mandatory.
- You also need a classification card for hotel business setup in Dubai.
- Submit your manager’s passport copy along with educational certificates and experience letters.
- Acquire an approved “Certificate of Conduct” for your hotel by the Department of Tourism and Commerce Marketing (DTCM).
- Get approval from Dubai general police headquarters.
4. Get Your Hotel License in Dubai
As mentioned earlier, to start a hotel business in Dubai you need a tourism license. To get this license the list of the requirements is given below:
- Present the fee receipt of the initial approval.
- Submit the trade name certificate and related payment receipts.
- You will need a No Objection Certificate in case of an international group or chain of hotels.
- Register on the Ejari platform and get your tenancy contract and your unique Ejari number.
- Get a tenancy contract approved by the landlord for a minimum of ninety days.
- Acquire consent from Dubai Municipality ( DM) and other legal departments for sanitation, waste management, public health, etc.
What is the Hotel License Cost in Dubai?
For a hotel business setup in Dubai, you must acquire a tourism license. A tourism license can cost you anywhere from AED 35000 to AED 45000, including the service and local agent fee.
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.
- Make sure that there is a good ventilation facility, and the chimney is up to 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 the utensils, a separate basin for cleaning the vegetables, fruits, and other food items. The basin for meat should be separate.
- To have a storage facility for all types of food items is mandatory.
- Make sure the drainage pipe is at a distance of at least 2 inches from the walls.
Take Your First Step to Start a Hotel Business in Dubai
The above-mentioned rules, regulations, and legal requirements are the most important information you need to know for a hotel business setup in Dubai. It is possible that the process may seem complex and confusing; so, you can always take the help of the expert business consultants at Shuraa Business Setup. If you wish to start a new hotel in business bay Dubai, our experienced consultants and legal advisers will provide you with proper information, full support and give you the right advice. All you have to do is connect with us and we will take care of it all.