Hotel and Guesthouse License Guide — All you have to know

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In Hong Kong, operating a hotel or guesthouse requires specific licenses to comply with legal regulations, ensure the safety and hygiene of the premises, and protect the interests of travelers and the public. As a professional design and engineering company, The Design Company not only specializes in innovative space design but also provides comprehensive licensing consultation services to help property owners complete the application process smoothly. This article explores the differences between guesthouse and hotel licenses, relevant licensing requirements, application procedures, and common questions.

Guesthouse License

Under the Hotel and Guesthouse Accommodation Ordinance (Cap. 349), a “guesthouse” refers to any premises offering accommodation for a period of less than 28 consecutive days. This includes family-style guesthouses, small-scale bed-and-breakfasts, and budget accommodations. All such establishments must obtain a guesthouse license to operate legally.

Applicable Scope

Units in residential buildings or mixed-use buildings.

Categories of Guesthouse Licenses

  1. General Guesthouse License: Applicable to premises in residential or commercial buildings.
  2. Holiday Camp Guesthouse License: For accommodation facilities within a camp area.
  3. Holiday House Guesthouse License: For village-style houses in the New Territories.

Hotel License

Hotel licenses apply to larger-scale hotels and must comply with specific requirements under the Buildings Ordinance (Cap. 123) and the Fire Services Ordinance (Cap. 95).

Applicable Scope

Premises approved or accepted by the Building Authority for use as hotels.

Categories of Guesthouse Licenses

  1. Drop-off areas for customer vehicles.
  2. Adequate parking spaces and loading/unloading facilities.
  3. Central air-conditioning and hot water supply systems.
  4. Accessibility features, such as barrier-free guest rooms and pathways.

Key Differences Between Guesthouses and Hotels

General Licensing Requirements

Building and Hygiene Requirements
  • Adequate fire escape routes, fire-resistant structures, and proper fire safety access in compliance with the Buildings Ordinance.
  • Sufficient lighting, ventilation, and hygiene facilities.
  • Drainage and water supply systems must meet the required standards.

Fire Safety Regulations
  • Compliance with the Code of Minimum Fire Service Installations and Equipment.
  • Ventilation systems must meet the requirements under the Building (Ventilation Systems) Regulations (Cap. 123J).
  • Electrical installations must comply with the Electricity (Wiring) Regulations (Cap. 406E).

Legal Restrictions
  • The premises must not be subject to land lease restrictions (e.g., prohibiting commercial use).

Specific Requirements for Guesthouse License

  1. Change of Use for Residential Premises: If the premises are designated for residential use, approval from the Building Authority is required to convert them to non-residential use.

  2. Village House Exceptions: Documentation from the Lands Department is needed for New Territories village-style houses.

Specific Requirements for Hotel Licenses

  1. Auxiliary Facilities: Parking, accessibility pathways, and central systems are mandatory.
  2. Building Use: The premises must be purpose-built for hotel use.

License Application Process

  1. Document Preparation: Submit relevant land lease documents, design plans, and legal opinions.
  2. Preliminary Review: The Home Affairs Department (HAD) will issue an acknowledgment notice upon receiving the application.
  3. Site Inspection: Relevant departments will conduct an initial site inspection and provide a list of required improvements.
  4. Improvement Works: Applicants must complete the required works and submit a “Completion Report Form.”
  5. Re-Inspection: Ensure that all works comply with regulations.
  6. Notification Issuance: Upon approval, the HAD will issue a payment notice.
  7. License Issuance: The license becomes effective upon payment of the required fees.

FAQs

  • If offering rental plans of 28 days or more, no license is required.
  • If offering short-term rental plans (less than 28 days), a guesthouse license is required.

Under current regulations, most capsule hotels face challenges in meeting building and fire safety standards, making it difficult to obtain a license.

  • Licenses are generally valid for 36 months. For premises purpose-built for hotel use, the validity may extend to 84 months.
  • Renewal requires a “Certificate of Compliance” from a recognized professional, certifying building and fire safety compliance.

Yes, but both the current license holder and the transferee must jointly submit a transfer application form (HAD 141).

Signboards must comply with the Guidelines for Erection and Maintenance of Advertising Signs. Large signboards require a registered professional to submit an application to the Buildings Department.

Applying for guesthouse and hotel licenses involves meeting requirements from multiple departments. Inexperienced operators are advised to consult professional licensing companies.

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