How To Start Hotel Business Setup in Dubai?


How to Start a Hotel Business in Dubai?

Hotel Business bookings made well in advance, and some made at the very last minute, all culminated in hotels across the UAE posting record occupancy rates for New Year’s Eve – a momentum that many hospitality experts say will carry over into the New Year as the UAE gets ready to host Expo 2020 Dubai. A hotel is an establishment of a permanent nature, which consists of four or more bedrooms, and offers bed and breakfast on a short-term contract, and provides certain minimum standards. The hospitality industry is a large umbrella industry that contains several different divisions of businesses:

  • Food and Beverage Industry
  • Air and land travel Industry
  • Entertainment such as movies/theatre/sports Industry, and
  • Tourism Industry and medical tourism
  • Hotel Industry

The hospitality industry is usually one of the largest revenue producers for countries since it deals with a variety of businesses. Hospitality usually focuses on the extra money that people have to spend on pleasurable things and leisure, though not always. Business conventions, training, and meetings in different countries also affect the hospitality industry greatly. Besides this domestic and international travelers also contribute to it. It must be remembered that the client, whether identified as a customer, guest, patient, student, or visitor, is of the utmost importance because the premises and services are provided for his or her benefit.


In some operations, where the management of the accommodation is not the main purpose of the operation, for instance, in a hospital or a school, it is easy to lose sight of the fact that a service, which is secondary to the main purpose, is being provided for the benefit of the building user, for example, the patient, with whom the manager of that service does not usually have direct contact.


Dubai’s hospitality industry witnessed a significant growth in both supply and demand, driven by preparations for the Expo 2020 event, new data has shown. According to STR’s preliminary August 2019 data for Dubai, the emirate’s hospitality sector witnessed a 7.6 percent year-on-year growth in supply, as well as a 7.4 percent year-on-year growth in demand. Occupancy during the period fell 0.2 percent to hit 68.5 percent, and average daily rates also dropped 12.5 percent to reach Dh389.11. Revenue per available room (RevPAR)also recorded a drop of 12.6 percent to Dh266.57.

Analysts at STR noted that as the market prepares to host Expo 2020 from October 20, 2020, through April 10, 2021, hotel rooms are being competitively priced in an effort to stimulate demand and keep up with accelerating room supply. This has been a common trend among the majority of key markets in the Middle East since the drop in oil prices in 2014.


Dubai’s consideration among global travelers is to regularly showcase the dynamic evolution of the Emirate proposition and the versatility of our portfolio that delivers truly customizable experiences for each and every visitor. Such a strategy would not be successful without multi-level partnerships between the public and private sector, and our cross-sector efforts are especially evident in the festivals and events spheres where our constructive and cooperative relationships with stakeholders have helped create truly memorable experiences for visitors. Stakeholder engagement is crucial to generating tourism growth and we are confident that it is this collective vision that will carry Dubai’s tourism industry into the future and ensure that it remains a must-visit destination


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Mainland Company Setup

Complete exemption from corporate tax
Possible to operate from UAE
No Capital requirements
No currency restrictions
Employment visa processing made simple
Repatriation of profits and capital
No audit requirements
Minimum responsibility and maximum benefits
Single person can open up an LLC
The maximum number persons or employees an LLC can have is 50
Corporate bank account in UAE
The UAE Companies law does not prescribed any minimum share capital but the entity should have adequete capital to achieve the incorporation purpose. Normally accepted minimum share capital for an LLC registered in Dubai was AED 100,000.

Presently, there is no requirements to deposite the share capital in UAE local bank.

Draft the MOA and AOA
Help in obtaining approval from DED
Registering the company name
Acquiring out an office space