Here are the steps to establish a hotel in Dubai

Dubai is one of the most attractive tourist and economic destinations in the world, combining a rich cultural heritage with modern and advanced infrastructure. The city is witnessing significant tourism growth, making it an ideal destination for investment in the hospitality sector. If you are thinking of establishing a hotel in Dubai, you are taking a strategic step towards entering a market full of opportunities and possibilities. However, starting a hotel requires careful planning, in-depth knowledge of legal procedures and requirements, as well as the ability to adapt to the city’s dynamic business environment. In this article, we will review the basic steps that must be followed to establish a successful hotel in Dubai, starting from choosing the appropriate location, through obtaining the necessary licenses, all the way to managing daily operations effectively.

Steps to establish a hotel in Dubai

Establishing a hotel in Dubai requires careful planning and compliance with a range of legal and administrative procedures. Here are the basic steps to establish a hotel in Dubai:

Market study and initial planning

• Market Analysis: Conduct a comprehensive study of the market to understand demand, identify the target audience, and review potential competitors.
• Develop a business plan: The business plan includes the hotel’s vision, goals, estimated budget, and revenue and expense projections.
• Searching for the appropriate location: Choose a strategic location that matches the type of planned hotel.
• Purchase or lease of land: Securing the land or building on which the hotel will be constructed.

Commercial registration

• Company Registration: Register the hotel as a company with the Dubai Department of Economic Development (DED). This includes choosing a business name and determining the type of business activity.
• Obtaining the initial license: Submit the required documents and obtain the initial license to practice commercial activities.
• Hiring an engineering office: Choose a reputable engineering office to design the hotel.
• Submitting plans: Preparing and submitting engineering and architectural plans to Dubai Municipality for approval.

Obtaining licenses and approvals

• Building permits: Obtaining building permits from Dubai Municipality after reviewing and approving the plans.
• Environmental and health approvals: Ensure compliance with environmental and health standards and obtain the necessary approvals from the competent authorities.
• Start construction: contracting with a contracting company to begin construction operations according to the approved plans.
• Quality Control: Ensuring adherence to standards and specifications during the construction process.

Equipment and furnishing

• Hotel equipment: Equipping the hotel with the furniture, equipment, and supplies necessary for its operation.
• Installation of technical systems: installation of security systems, air conditioning, lighting, and communications systems.
• Applying to the Department of Tourism and Commerce Marketing (DTCM): Submit an application for a tourism licence, including all required documents and approvals.
• Hiring employees: Recruiting the hotel’s administrative and operational staff.
• Employee training: Providing training programs to ensure the provision of high-quality service to guests.
• Develop a marketing plan: Prepare and implement a marketing plan to attract guests and raise awareness of the hotel.
• Cooperation with travel agencies: Cooperation with travel agencies and tourism companies to promote the hotel.

What are the government conditions for launching a hotel in Dubai?

To obtain a business license in Dubai to establish a hotel, there are some rules set by the Ministry of Tourism and Commerce Marketing in the UAE. You must adhere to the rules mentioned below:

• You need a bank guarantee to issue a hotel license in Dubai.
• The minimum size of a hotel room must be at least 30 square metres.
• Store guest data securely.
• The offers and prices you provide must be clearly displayed.
• The hotel manager must provide a certificate of good conduct from the UAE government.

What is the process to start a hotel business in Dubai?

Although all businesses in Dubai have the same legal and judicial requirements, they are different in the hotel sector. Generally you need a tourism licence. Mentioned below are the necessary steps to set up a hotel in Dubai:

Choose a location 

You must select a suitable location for your hotel. Make sure to do some research on tourist attractions that are in high demand. You can choose between mainland Dubai or free zones. You can also get in touch with experienced business consultants in Dubai to help you choose the right location for your hotel.

Appoint a manager

To set up a hotel in Dubai, you need to hire a manager. The manager must have the relevant qualifications and approved certificates. Only then can you appoint the candidate as your hotel manager. Therefore, make sure to hire a suitable manager with an experienced practical background to ensure and maintain the cleanliness of the food and the health of the guests and to provide a suitable atmosphere inside the hotel and among the employees.

Obtain initial approval

To request initial approval, you must follow the following steps:
Submit copies of passports for yourself, your business partners, and employees.
Providing site plans and building a certificate of completion of ownership for the hotel.
Send a copy of your manager’s passport along with educational certificates and experience letters.
Obtain a certificate of conduct for your hotel from the Department of Tourism and Commerce Marketing.
Obtaining approval from the Dubai Police General Headquarters.

Obtaining a license for hotels in Dubai

To launch a hotel in Dubai you need a tourism license. Here is the list of requirements to obtain this license:

• Submit receipt of initial approval fees.
• Submit the trade name certificate and relevant payment receipts.
• No objection certificate in case of a group or chain of international hotels.
• Register on the Ejari platform and get your rental contract.
• Obtaining a lease contract from the owner for a period of no less than ninety days.
• Approval from Dubai Municipality and other legal departments for sanitation, waste management, and public health.

Government conditions for establishing a hotel in Dubai

Cost of a hotel license in Dubai

Establishing a hotel in Dubai and establishing a company in Dubai requires obtaining several licenses and permits from different parties to ensure compliance with local standards and laws. The cost of these licenses depends on a range of factors, including the type of hotel, its location, size, and the services it provides. Here is an overview of the main steps and costs associated with obtaining a hotel license in Dubai:

Site selection and classification

The first step is to choose the appropriate location for the hotel and its classification, whether it is a small, medium-sized hotel, or a luxury hotel. This choice greatly affects the total cost of the project.

Commercial registration

The hotel must be registered as a company with the Dubai Department of Economic Development (DED). This process includes submitting the required documents and obtaining the necessary approvals.

An application must also be submitted to Dubai Municipality to obtain a hotel building permit. This application includes submission of building plans, architectural and engineering designs, as well as compliance with health and safety requirements.

Tourist licence

After obtaining permits from Dubai Municipality, you must obtain a tourism license from the Department of Tourism and Commerce Marketing (DTCM). This license includes verification that the hotel meets all required hotel standards.
Approvals must also be obtained from the Dubai Health Authority to ensure that health standards are met. In addition, you may need environmental approvals to ensure that the hotel adheres to sustainable environmental practices.

Securing additional licenses

Depending on the services the hotel provides, you may need to secure additional licenses, such as licenses for restaurants, spa centers, or the service of alcoholic beverages.
Establishing a hotel in Dubai requires careful planning and significant investment in obtaining the necessary licenses. It is essential to work with experienced legal and business advisors to ensure the process runs smoothly and efficiently. Additionally, it is important to stay informed of any changes in local laws and regulations that may affect the incorporation process.

Architectural requirements for a hotel in Dubai

Establishing a hotel in Dubai requires compliance with a set of architectural standards and requirements that ensure quality, safety and efficiency. These requirements address multiple aspects of hotel design and construction to ensure an excellent guest experience and meet environmental and local standards. Below are the most important architectural requirements that must be taken into consideration when designing and building a hotel in Dubai:

Engineering and architectural design

The engineering and architectural design must be compatible with international and local standards. Detailed architectural plans must be submitted that include location, area, internal distribution, and external design.

Licenses and approvals

Obtaining the necessary licenses from Dubai Municipality, which include building permits and certificates of conformity. This requires submitting engineering and architectural drawings for approvals.

Compliance with environmental standards

The hotel must adhere to the environmental standards set by Dubai Municipality and the Environment Agency. This includes using environmentally friendly building materials, installing waste management systems, and using energy-efficient lighting and cooling systems.

It must also comply with Dubai’s health and safety standards. This includes equipping the hotel with fire-fighting systems, alarms, and emergency exits, and ensuring that public and private areas are well ventilated.

Access and facilities for people with special needs

Providing the necessary facilities to ensure access for people with special needs, including ramps, elevators, rooms and facilities designed to meet their needs.

The interior and exterior design of the hotel must reflect the cultural and architectural character of Dubai, with attention to aesthetic and functional details. This includes choosing materials and finishes that create an atmosphere of luxury and comfort.

Facilities and services

Providing basic facilities and services such as restaurants, health clubs, swimming pools, business facilities, and recreational spaces. These facilities should be designed to meet the needs and expectations of guests.

Waste and sanitation management

Installing effective waste management and sanitation systems in line with Dubai’s environmental and health regulations. This includes equipping the hotel with solid and liquid waste treatment plants.

Smart technologies are also used in hotel management, such as advanced security systems, lighting and cooling control systems, and smart communication solutions to improve the guest experience.

Investing in Dubai

Dubai is one of the most prominent investment destinations in the world, distinguished by its strategic location, advanced infrastructure, and stimulating economic policies. Dubai’s economic environment provides tremendous investment opportunities in various sectors, including real estate, tourism, financial services, and technology. Investing in Dubai depends on an approach that combines modernity and heritage, which enhances the city’s attractiveness to global investors.

Dubai is distinguished by providing great facilities to investors, including not imposing taxes on personal income and companies in many free zones, in addition to intellectual property protection laws that guarantee investors’ rights. Dubai also hosts many international events and exhibitions that contribute to strengthening its position as a global economic destination.

Dubai is committed to providing a safe and stable environment for investors, through a transparent and modern legal system that supports sustainable economic growth. The ambitious vision of the Dubai government, represented by sustainable development plans such as Dubai Vision 2021 and Dubai Plan 2040, enhances long-term investment opportunities and makes Dubai the city of the future for investors looking for an integrated environment that combines luxury and innovation.

Establishing a hotel in Dubai is not just an investment opportunity, but rather a strategic step towards entering a global hospitality market full of potential and opportunities. Thanks to the city’s strategic location, advanced infrastructure, and government policies supportive of investment, Dubai provides an ideal environment for establishing and operating world-class hotels. This project requires careful planning and compliance with local and international standards, from market study, site selection, and obtaining licenses, all the way to preparing the hotel and operating it effectively. By committing to these steps, investors can achieve success in Dubai’s thriving hospitality sector, providing exceptional hotel experiences that meet the aspirations of visitors from all over the world. Dubai, with its cultural diversity and continuous economic growth, remains a distinguished destination for investors looking to build a successful and bright future in the hospitality industry.

Frequently asked questions about the steps to establish a hotel in Dubai