Start a Hotel Business in Dubai in 4 Steps: Costs & Benefits

Dubai, UAE is a business center for many types of enterprises. It has a strategic position, strong infrastructure, and a profitable business environment, attracting numerous entrepreneurs from around the world. When it comes to creativity and innovation, the hotel industry plays a significant role. This industry is suitable for investment and the establishment of a hotel business in Dubai. 

We recommend that you read this article before you begin preparing to open a hotel business in Dubai. We have included all of the information on how to start a Hotel Business in Dubai in 2024, how to obtain a hotel license in Dubai, and how much a hotel license in Dubai costs.

Procedure to Start a Hotel Business in Dubai

Before we begin the process of starting a hotel business in Dubai, we want to draw your attention to a crucial point. Although practically all types of enterprises in Dubai are subject to the same legal and judicial standards, the hotel industry is unique. In general, a trade license is required to do business in Dubai; however, a tourist license is required to start a hotel business in Dubai. The following are the steps to establishing a hotel in Dubai:

Select the Location

To incorporate a hotel business in Dubai, you must first choose a suitable location. Make sure you investigate the local population and surroundings. You might choose to build a hotel in a free zone or on the mainland of Dubai. You can contact expert business advisors in Dubai to assist you in choosing an acceptable site for your hotel. 

Choose and Hire a Manager

A manager is required for the opening of a hotel business in Dubai. The manager must have the necessary qualifications and approved certificates. Only then may you appoint the individual as manager of your hotel. 

Whoever you hire as your hotel manager must be capable. They must master their craft because they will play an essential part in determining the needs of the hotel sector. Everything will be monitored by them, from sanitation and hygiene to food and staff to the quality of services. So, make sure you hire the correct person for the job. 

Get Initial Compliance

You must maintain all essential paperwork on hand to obtain preliminary permission from the Department of Economic Development (DED). To obtain approval to open a hotel in Dubai, keep the following documents on hand: 

• Fill out and submit an application form provided by the DED, and have all of your partners sign it.
• You must supply passport copies for yourself, your company partners, and your staff.
• It is necessary to submit plot maps, blueprints of the area, and a building completion certificate for the hotel property.
• A classification card is also required for hotel company development in Dubai. 
• Along with your experience letters and educational credentials, send in a copy of your manager’s passport. 
• Obtain a “Certificate of Conduct” from the Department of Tourism and Commerce Marketing (DTCM) for your hotel.
• Obtain permission from the Dubai General Police Headquarters.

Acquire your Hotel license in Dubai

As previously stated, a tourism license is required to start a hotel business in Dubai. The following are the requirements for obtaining this license:

• Present the initial approval fee receipt.
• Submit the trade name certificate as well as any associated payment receipts.
• In the case of an international hotel group or chain, you will need a No Objection Certificate.
• Register on the Ejari portal to receive your tenancy contract and Ejari number.
• Get the landlord to authorize a tenancy contract for at least ninety days.
• Obtain permission from the Dubai Municipality (DM) and other legal authorities for sanitation, waste management, public health, and so on.

Advantages of Incorporate a Hotel Business in Dubai

Opening a hotel firm in Dubai may be a beneficial financial decision due to the numerous benefits the city offers. The following are some significant benefits of building a hotel in Dubai: 

• Tourism Industry Expansion
• High Investments Return
• Tax Advantages 
• Multi-cultural Nation
• Attraction and Full of events
• Excellent Infrastructure

Cost to Incorporate a Hotel Business in Dubai

A tourist license is required to start a  hotel business in Dubai. A tourism license can range between AED 35000 and AED 45000, including service and local agency fees. 

Types of Hotel Businesses in Dubai

The different types of hotel businesses in Dubai are:

• Luxury Resorts
• Holiday Houses
• Guest Houses
• Hostels for Youth
• Hotel Apartments
• Hotels

Legal Regulations to Open a Hotel Business in Dubai

The Department of Tourism and Commerce Marketing (DTCM) has developed specific criteria and procedures for obtaining a hotel license in Dubai. You must follow the following guidelines:

• A bank guarantee is required for the issuance of a hotel license in Dubai.
• Your hotel’s management must have a “Certificate of Good Conduct.”
• Your programs and prices must be displayed.
• A hotel room must be at least 30 square meters in size.
• Every guest’s data must be securely stored.

Conclusion

Starting a hotel Business in Dubai can be profitable, but it requires careful planning and execution. You may position your hotel company for success in this booming metropolis by conducting thorough research, obtaining the necessary permissions, selecting the greatest location, recruiting the best workers, and providing top facilities and services. Always prioritize your guests’ desires and satisfaction, and stay current on industry trends and standards.