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HOTEL LICENSE

Acquiring a hotel license is a time consuming and complex process. We advise our clients to consult with our experienced team of lawyers prior to applying for such as license.

Types of Hotel 

A Hotel is defined under the Hotel Act (2004) as any place providing accommodation in exchange for money within a period of less than one month.

 

A Hotel License is however not required if:

  • The number of rooms do not exceed more than 4 rooms on all floors in all buildings

  • The total capacity does not exceed 20 guests

  • The venture qualifies as small business that provides an additional source of income

  • The owner reports its daily rental business to the government

If the business is in line with the above-mentioned criteria it is however uncertain whether officials would recognize this small business venture as “not a hotel” or “type zero hotel (no license required)”

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Hotels are categorized into the following types:

 

Type 0

The hotel is exempted from certain criteria including the need to apply for a license.

Type 1

Providing accommodation only

Not more than 50 rooms

Size of each room not less than 8 square meters  

Type 2

Providing accommodation + catering/restaurant services

More than 50 rooms allowed

 

If a hotel has more than 80 rooms an Environmental Impact Assessment is required

Size of each room not less than 8 square meters  

Type 3

Providing accommodation+ catering/restaurant services + either conference rooms or entertainment venues

More than 50 rooms allowed, however in order to open entertainment venues 80 hotel rooms are required. If a hotel has more than 80 rooms an Environmental Impact Assessment is required

Size of each room not less 14 square meters

Type 4

Providing accommodation+ catering/restaurant services + conference rooms and entertainment venues

More than 50 rooms allowed, however in order to open entertainment venues 80 hotel rooms are required. If a hotel has more than 80 rooms an Environmental Impact Assessment is required

Size of each room not less 14 square meters

Business Registration and Company Structure

Hotel businesses are highly regulated in Thailand, and limited to foreigners under the Foreign Business Act. Foreigners would have to apply for a foreign business license to operate a hotel with majority shareholding.

 

A Thai Limited company with the majority shareholder being Thai however does not face such restrictions. It is therefore a viable option to form a partnership with a Thai National.

 

Foreigners may be exempted from the restrictions of the Foreign Business Act, if they qualify for BOI, which requires an investment of not less than 500 Billion and 100 Hotel rooms or more.

 

Another exception is the US Amity Treaty company, which allows US Nationals to hold a majority share in Thai Companies.

Need Assistance?

SCHEDULE A FREE 30 MINUTES CONSULTATION WITH OUR TEAM

Nattaphong, Senior Legal Consultant

Government Fees for the Hotel License Application

Type 1 Hotel License: 10.000 Baht

Type 2 Hotel License: 20.000 Baht

Type 3 Hotel License: 30.000 Baht

Type 4 Hotel License: 40.000 Baht

                                           

Additional yearly fee per room: 80 Baht

  • Consideration Time for the Hotel License Application takes around one month

  • The Hotel License is valid for 5 years and can be renewed prior to expiry

  Any Questions? 

 Speak to our Team 

+6627115470 #101

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Vbiz (Thailand) LTD.
555/37 16th floor, S.S.P Tower Building Sukhumvit 63, Khlong Tan Nuea, Watthana, Bangkok 10110
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