How To Start a Hotel Business in Dubai?

Dubai is a city which has carved a niche of its own & is popular equally among tourists & residents alike. In this scenario, one of the basic amenity that has to be in place is a comfortable space, where one can unwind after a long day. Cue Hotels!!! Not only is it a place of shelter, food, entertainment & much more for tourists, but residents too enjoy taking occasional breaks from their homes to pamper themselves & to relax in the ambience of a hotel.

Taking into consideration the importance & feasibility of a hotel in a hub of the world, it’s only imperative that a Hotel business in Dubai could be quiet profitable.

In order to start one in Dubai, these are the requirements

First of all the entrepreneur will have to decide the type of Hotel. It could be

A Resort
Hotel
Hotel Apartment
Holiday Home
Guest House
Or Hostel, among other types

Next, hotels can be any star up to 7 stars & Holiday homes could be either luxury or average.3. There are some regulations which are specific to Hotels due to the nature of the business, For Example

The License for a Hotel will be issued by the Department of Tourism and Commerce Marketing (DTCM). This is due to the fact that Hotels fall into the tourism sector
The size of a hotel room should not be less than 30 square meters
A bank guarantee will be required before the license can be secured
The application to be used by the Hotel for recording guest information should be accurate & secure to avoid any chances of data breach

The appointment of an Executive with pertinent qualifications & good experience is of utmost importance, as he/she will be at the forefront of the hotel formation. He / She will be the one with thorough knowledge of the business & will be the one tasked with preliminary handling of required documents for the formation.

How to start a hotel business in Dubai

Below are the initial documents which will be required for submission for initial approval

Department of Economic Development application stating the sponsor & owners in the license % their share percentage among other details.
Sponsor/Owners-Passport Copy, Visa Copy /Entry Stamp/Stamped Visa copy, Emirates ID copy, & relevant identifications. (Note: Stamped visa/Emirates ID for owner is required only if the Owner is a resident of UAE)
Affection plan of the hotel building & building completion certificate
The appointed executives’ passport copy, academic qualification & Experience Letter if available
Approval from Dubai Police & an approved Good Standing certificate

In order to receive the license the following documents will be required

Initial Approval Certificate
Initial Trade name reservation certificate
NOC (No Objection certificate) form relevant authorities
Lease agreement/Tenancy contract of not less than 3 months from the landlord
Ejari which has been issued by the Land department of Dubai for the property
Approval from other relevant external authorities like Dubai Municipality, etc
Payments & Receipts incurred for preliminary formation

Once all the required documents are submitted at the authority & no discrepancies have been found, the issuance of the license will take place pretty smoothly henceforth.

This blog is written by Ms. Ayesha, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. If you have any question regarding setting up a hotel in Dubai or anywhere across the UAE then please contact us at +971 4 4542366 or email us at info[at]flyingcolour[dot]com.Flying Colour is one of the most trusted & reliable companies for business formation as our google reviews speaks for itself.