Starting a hotel business in Dubai

How to Start a Hotel Business in Dubai?

by Zaara 24, Apr 2019

Dubai, due to its expanding economy, abundant resources and stability in business growth, have made it the best place to set up business in the UAE. With various government policies and incentives offered, Dubai has become a business hub for all start-ups.

The hotel business in Dubai is one of the most remunerative economic businesses. This is due to its high tourist attractions and visitors around the globe, the hotel business is booming. Around millions of people visit Dubai annually for traveling, business setup, and job opportunities, making Dubai need more accommodating places. A wide range of futuristic projects makes it a reason for corporate investors to attract to this sector.

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About Hotel Business in Dubai

Dubai, with its fabulous locations and beautiful sea links, makes a perfect place for any accommodation industry. The tourism sector offers multiple investment possibilities to foreign investors looking forward to investing in this sector. From restaurants to hotel, there are many accommodation industries in Dubai.

  • Revenue for the sector is anticipated to increase by 74.8% annually to $26.3 billion in 2022.
  • The market's revenue is predicted to expand at a pace of 4.28% per year (CAGR 2022–2027).
  • By 2027, internet sales will account for 89% of all revenue in the hotel sector.

If you wish to start a hotel business in Dubai, different kinds of accommodation places can be set up.

  • Resorts
  • Hotel Apartments
  • Hotels
  • Youth hostels
  • Guesthouses
  • Holiday homes
  • Vacation homes
  • Beach houses

The hotels are further classified into 1-star to 7-star hotels. These are divided from standard to deluxe categories.

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How to Start a Hotel Business in Dubai?

Before opening hotel in Dubai, you need to follow specific steps and regulations, as mentioned by the authorities.

1. Initial Approval

Get the initial approval and get your trade name registered.

2. External Approval

Register via the classification portal and complete the online application.

3. Documents

Submit all the required documents.

4. Address

Locate the company address using the map.

5. Application Form

Submit the application and pay the fees.

6. License

Within 24 hours, your application will be reviewed and a payment Voucher will be generated. Pay the fees.
 

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Things to know Before starting a Dubai Hotel Business

Opening a hotel can be hassle-free if you are well-versed in all the legal formalities.

1. Compliance with all the Regulations

The first step to starting a Dubai hotel business is to abide by the rules and regulations prescribed by the authorities. In Dubai, the Department of Tourism and Commerce Marketing (DTCM) has made specific rules to be followed while setting up a hotel business.

  • Bank guarantee from the investors or owners should be given before issuance of the tourism license.
  • Provisions should be made to maintain guests’ data.
  • Prices of all the packages must be displayed accurately.

For a hotel business in Dubai, fulfill all the statutory requirements. These requirements are the same for all business setups.

3. Manager to be Appointed

For regulation of a hotel business, a manager must be selected. The manager will be responsible for all the activities in the hotel. The manager is required to keep a check on all the necessities of the hotel. The manager will be a qualified person with approved certification. A prior appointment of a manager is advised as he can help with initial approvals and documentation processes.

4. Approvals

The manager appointed can help with the initial process. So, appointing a manager in the initial level is very beneficial. Permission is required on documents by the authorities.

5. License Approval

The most crucial step to carrying out any business is to get a license to run that business. To set up a hotel business in Dubai, you need to have a Tourism license issued by the Department of Tourism and Commerce Dubai (DTCM). After submitting all the documents, your license will be issued within one week of approval of the documents.

Documents Required or Opening Hotel in Dubai

For opening hotel in Dubai, you need

  • Receipt of fee from initial approval
  • Certificate of trade name
  • Related payment receipts
  • No-Objection certificate (NOC)
  • Three months of minimum tenancy agreement copy
  • Ejari certificate copy for the hotel property
  • Documents that were submitted for initial approval and other certificates
  • Support from Dubai Municipality and other related bodies for sanitation and waste management and public health.

To start a hotel business in Dubai, feel free to Contact Us; we will be glad to assist you.

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FAQs

Is Hotel Business Profitable in Dubai?

Yes, the hotel business is very profitable in Dubai and in the coming years, the profitability will increase due to the increasing footfalls into the country.

What is the price of a hotel license in Dubai?

The price of your hotel license will depend on various factors. However, it starts from AED 30,000. 

What are the regulations for starting a Dubai hotel business?

If you’re opening your Hotel on a Mainland, you’ll have to appoint a Local Agent who should be a UAE national. But for Freezones, there is no need to do so.

How can I open a hotel in Dubai?

Opening a hotel business is a three-step process:

  • Appoint a manager
  • Obtain Approvals
  • Get the license