All you Need to Know About Starting a Hotel Business in Dubai
Dubai is now one of the most attractive cities for tourism around the world. It is also one of the biggest business hubs. The city provides endless facilities for foreign investors, making it among the top choices for setting up a business. The types of businesses you can set up in Dubai are numerous, and hotel businesses are among the highest in demand. On top of that, Dubai is also home to many global events and easy visa regulations.
In this article, we will provide you with all the information you need to know about setting up a hotel business in Dubai, and the procedures that you will need to go through.
Before we discuss the procedures and requirements of setting up a hotel business, let us tell you about the different classifications of hotel businesses in Dubai. Your hotel must be under one of the following categories:
A hotel is classified from 1 to 7 stars. While holiday houses are divided into standard or deluxe.
Requirements and Procedures
First, it is important to know that although most types of businesses in Dubai require the same legal and judicial requirements, the requirements are different in a hotel business. For example, most businesses in Dubai require a trade license, however for a hotel business you will need a tourism license.
Another thing that you will need for your hotel business is to appoint a manager. The manager you appoint should hold a relevant qualification and an approved certification. The manager’s role is to assist through the licensing of the business and the process of initial approval. He will also be responsible for determining other requirements of the hotel industry.
So what are the main documents that you will need to submit in order to start your hotel business?
Find a Local Sponsor
The very first step you will need to take for starting your hotel business is to find a local sponsor. Finding a local sponsor is a requirement for any type of business in Dubai when it is set as a Limited Liability Company. (Some business types will be excluded by the end of the year according to the new law by the UAE’s Cabinet). A local sponsor owns 51% of your business shares while you own 49%. If you prefer to have full ownership of your business, you can consider setting it in a free zone. However, you must consider the strict regulations of trading in a free zone and know that your hotel will have to be physically located in that free zone.
Get the Initial Approval
As mentioned before, the required documents for a hotel business are different from other types of businesses in Dubai. To get an initial approval you will need the following documents:
Application form from the DED
Passport copies and IDs for all the applicants
Manager’s passport copy, educational certificate and experience letters
Plot maps, location blue prints and building completion certificate
Approved Certificate of Good Conduct from DTCM (Department of Tourism and Commerce Marketing)
Approval from Dubai General Police headquarters
Get your Tourism License
As stated before, a tourism license is required for running a hotel business in Dubai. Here are the documents required for getting your tourism license:
Fee receipt of initial approval
Trade name certificated and related payment receipts
Ejari certificate for hotel property
Tenancy Contract approval by landlord (minimum 3 months)
Required documents for initial approval and relevant certifications
No Objection Certificate (In case of international group or brand of hotels)
In order to obtain your Hotel License, it is important to follow the hotel regulations set by the DTCM. These regulations include:
A bank guarantee
Minimum size of hotel room should not be less than 30 square meters
Accurate display of all prices and packages
Establishing an effective program to store and secure guests’ data
These are the most important information you need to know if you are considering setting up a hotel business in Dubai. Because the procedures may seem complex and confusing, it is always better to hire a consulting agent to handle the procedures for you. Global Link offers its services to assist you in all you need for building your hotel business. Contact us now and let us see how we can help you.