How To Open a Hotel In Thailand

Being under the threshold is not enough on its own. A property only counts as a non-hotel once an official has inspected it and issued a letter of acknowledgement. Until then, a small guesthouse taking paying guests is an unlicensed hotel.

The process is far lighter than a license application. You notify the hotel registrar, an official inspects, and the letter follows within forty days. The property does not have to meet hotel building standards. You provide proof that you own the building or have the owner's consent, the land title, a location map, evidence of your main income, and fingerprints for a criminal record check. Notification is made online or, where that is not possible, at the Department of Provincial Administration's Bureau of Investigation and Legal Affairs in Bangkok or the district office elsewhere.

The letter, a nangsue rap jaeng, runs five years from notification, and you tell the registrar if you stop. It is often called a non-hotel license, but since the registrar acknowledges a notification rather than granting permission, non-hotel registration is the accurate term.

Hotel operation is a restricted business under the Foreign Business Act, so a company that is half or more foreign-owned cannot simply run one. Hotel management services are the exception to that restriction, which is why some foreign groups operate hotels they do not own. Four routes are open to you.

• Thai majority company. Foreign shareholders hold up to 49%, and the company operates the hotel without further permission. This is the most common structure for a single property.
• Foreign Business License. Majority or full foreign ownership with permission from the Ministry of Commerce. Minimum capital is three million baht for the licensed business, or 25% of the annual average of the estimated expenses over three years, whichever is higher. This route is the most difficult. The FBL is only given to companies that have a convincing reason why they need to be foreign owned.
• BOI promotion. Realistic only at scale. You need to invest at least 500 million baht, or two million baht a room if the hotel has 100 rooms or more, not counting the land, and the hotel must meet the Board's standards. In return, the company can be fully foreign-owned and can own its land.
• US Treaty of Amity. American citizens and companies can hold the whole of a Thai company running a hotel, since accommodation is not among the sectors the treaty excludes.

All license applicants must meet a core set of requirements before the registrar will grant a license.

1. A Building Permitted for Hotel Use

Where the Building Control Act B.E. 2522 applies, the building must hold permission to be used as a hotel, and the fire safety standards come with that permission. Where it does not apply, a licensed engineer or architect has to certify that the building is structurally sound, and the registrar checks the fire extinguishers, fire alarms, corridors, fire exits and, above 2,000 square metres, emergency power. Hotels of eighty rooms or more, and taller or larger buildings, must also be inspected by a licensed building inspector every year, and that certificate is required at each renewal.

2. Facilities and Security

Every hotel must have a place to register guests, adequate telephones or other communications, first aid with referral to a nearby hospital, and a security system covering the whole property around the clock. Room doors need a peephole and an internal lock, every room is numbered, and bathrooms in public areas are separated for men and women.

3. A Registered Hotel Manager

Every hotel must have a manager, and the operator can fill the role. The manager is appointed by the operator and notifies the registrar, who issues a receipt on the day of notification. Under Section 33 the manager must be at least twenty, hold a certificate or experience set by the Committee for Promotion and Supervision of Hotel Business or have completed a training course it recognises, be of sound mind and legal capacity, and have no disqualifying convictions. Running a hotel without a manager carries an administrative fine of up to 500,000 baht, plus 20,000 baht for each day it continues.

4. An Environmental Impact Assessment at 80 Rooms

A hotel of eighty rooms or more, or with 4,000 square metres or more of usable floor area, needs a full environmental impact assessment approved before building work is permitted, and the approval letter goes in with the license application. In designated environmental protection areas, local notifications can require an environmental report for smaller hotels as well. On a project of this size it is the longest item in the timeline.

In Bangkok, applications go to the Bureau of Investigation and Legal Affairs at the Department of Provincial Administration. Elsewhere, they go to the district office where the hotel is located. The applicant attends in person, or at least has fingerprints taken for the criminal record check.

Step 1: Register the Correct Legal Entity

You need a registered company before applying, and its objectives must specifically include hotel or accommodation services. This is checked during the license review. See register a company for how that works.

Step 2: Get the Building Permitted for Hotel Use

Obtain the building's permission for hotel use from the local authority, or the engineer's or architect's safety certificate where the Building Control Act does not apply. If the project needs an environmental impact assessment, it must be approved first. These are the items that most often hold applications up.

Step 3: Prepare the Application Documents

The file contains the application form, the applicant's identification, the building plans and specifications, proof of ownership of the building or the owner's consent, the land title, the building's permission for hotel use or the safety certificate, a location map, the environmental impact assessment approval where required, and the criminal record check. For a company, add a company certificate issued within the last three months, and the identification and letter of appointment of its representative.

Step 4: Submit and Follow Up

The official processing time is 66 days from a complete application. The registrar has five working days to tell you if anything is missing, and officials inspect the premises before the license is granted.

Step 5: Display the License on the Premises

The license must be displayed where guests can see it. Under Section 19 of the Hotel Act it applies only to the hotel named on it and runs for five years from the date of issue. Apply to renew before it expires: an application up to sixty days late is still accepted with a 20% surcharge on the renewal fee, and anything later counts as a new application. Changing the hotel's type, its number of rooms or its name needs the registrar's permission. Under Section 24 a license can also be transferred to a qualified person with the registrar's approval, which matters if you are buying an existing hotel.

A hotel license covers accommodation and nothing else. If the property serves food, a food establishment over 200 square metres needs a restaurant license from the local authority, while smaller premises file a notification and receive a certificate. Serving or selling alcohol needs an alcohol license from the Excise Department, separately from the hotel license. You can file these applications with the hotel registrar at the same time as the hotel license, and the registrar passes them to the agencies concerned.

An entertainment venue, live music or a spa each bring their own permissions, which is also what moves a property from Type 2 into Type 3 or Type 4. Depending on the building, a generator permit, a fuel storage permit or a service vehicle license may be needed as well.

A common question from foreign investors is whether Airbnb-style rentals require a hotel license. They do. The Act excludes accommodation let by the month or longer, so lettings of less than thirty days fall within the definition of a hotel.

Condominium units are the hardest case. A hotel license needs the building to be permitted for hotel use, which a residential condominium is not, and a condominium's own regulations commonly forbid short lets. Check the building's regulations before relying on the small-property route for a unit.

Enforcement has historically been inconsistent in Bangkok, but authorities have become more active. Operating without a license carries imprisonment of up to one year, a fine of up to 20,000 baht, or both, together with a further fine of up to 10,000 baht for each day the offence continues.

Work Permits for Foreign Hotel Managers

If you intend to work in your own hotel, in management or in day-to-day operations, you need a Thai work permit. The company must hold two million baht of registered capital for each foreign employee and employ four Thai nationals for each one. Full requirements are on our work permit page.

If the hotel also sells tours, transfers or activity packages, that is a separate business needing a TAT tourism license.

Your Next Steps

Attori Law handles hotel and guesthouse licensing from company setup through to opening permits. If you have a property in mind and want to understand the right structure and timeline for your situation, contact us for a free discovery call.