Hotel Management & Transactions 2025 Comparisons

The legal framework governing hotel transactions in the Dominican Republic is rooted in a civil law system and draws on a combination of general and sector-specific legislation. The primary sources include the following.

• The Civil Code, which regulates contractual relationships, property rights, lease agreements, and obligations arising from hotel transactions, including share and asset deals.
• The Commercial Code, which applies to corporate structures and commercial transactions, particularly in the acquisition of shares or equity interests in hotel-owning entities.
• Labour Law (Law No 16-92), which governs employer-employee relationships. In hotel transactions, this law ensures the continuity of labour obligations in the event of a change in ownership, protecting workers’ accrued rights and imposing joint liability on successive employers.
• Tax Law and the Tax Code, especially regarding the tax treatment of transactions, foreign investments, and withholding obligations for royalties or service fees, particularly relevant in management or franchise agreements.
• Law No 158-01 (Tourism Incentives Law), which offers fiscal benefits and exemptions for hotel projects qualified under the CONFOTUR Law (Tourism Development Law), influencing the structuring of acquisitions and investments.
• Environmental and Land Use Regulations, including the Territorial Planning Law, Law No 64-00 on Environment and Natural Resources, and municipal zoning codes, which govern the location, development and use of hotel properties.
• Law No 20-00 on Industrial Property, which ensures the legal protection of trademarks and branding, a key component in franchise and management arrangements.

In practice, hotel transactions are also shaped by jurisprudence, regulatory guidance from authorities such as the Ministry of Tourism (MITUR) and the General Directorate of Internal Revenue (DGII), and international standards embedded in management and franchise contracts. This creates a hybrid legal environment that balances national regulation with cross-border commercial practices.

The Dominican Republic is a compelling destination for the development of both domestic and international hotel ventures. Its geographic location serves as a gateway for tourism and commerce ‒ both by air and sea ‒ boosting the development of a wide range of hotel proposals and increasingly encouraging stability and long-term investment opportunities in the hospitality industry.

Among the most common structures for hotel development and promotion (including tourism, ecotourism and business tourism projects) are acquisitions or sales of hotels or hotel projects. These typically involve a hotel owner ‒ usually a national or foreign corporate vehicle established to raise capital ‒ who manages permitting processes, land acquisition, construction at their own risk and cost, branding and management agreements with established hotel chains, or franchise agreements with international brands seeking presence in the Dominican market. These actors are fundamental to the creation of the hotel asset. Key players include the hotel operator (responsible for managing the hotel’s operations and assets) and the hotel brand or chain, which serves as an intangible asset that drives brand expansion through strategic support to independent owners.

Once a hotel project is defined, backed by tangible and intangible assets, and approved by the relevant state regulatory bodies, it is possible to design legal structures ‒ primarily guided by financial and tax analysis ‒ that facilitate successful hotel sale and purchase transactions in the Dominican Republic. The most common structures include the following.

Share Deal (Acquisition of Shares/Ownership Interests in the Hotel-Owning Entity)

In this type of transaction, the buyer negotiates participation through the acquisition of shares or ownership interests in the company that owns the hotel. This can be done either via purchasing previously issued shares or through a capital injection in exchange for newly issued shares.

A key advantage of this method is that it allows for a more straightforward legal transfer of hotel assets and associated rights (contracts, licences, permits), ensuring the continuity of hotel operations. A thorough due diligence process, supported by specialised technical advisers, is essential to secure not only the transfer of property rights but also to protect the buyer from liabilities, debts or obligations acquired by the seller (as the buyer assumes both assets and liabilities). This minimises risk and hidden contingencies.

Asset Deal (Direct Purchase of Tangible and Intangible Assets Used by the Hotel)

Here, the buyer directly acquires all the hotel’s operational assets (land, buildings, furniture, equipment, permits, licences, management and branding contracts) without assuming related liabilities or debts. This type of transaction also requires expert assistance to properly identify and transfer individual assets through a detailed due diligence process.

Unlike share deals, asset transactions tend to be more complex in documentation and structure. Regulatory permits and licences may need to be re-applied for, and real estate ownership transfers and contractual rights assignments must be registered and processed individually.

In both transaction types, tax advantages may apply, particularly if the project benefits from a Final Resolution under CONFOTUR, pursuant to Law No 158-01.

By default, hotel transactions and their terms and conditions are confidential, limited to the contracting parties and any technical advisers involved.

These transactions are private and do not require mass disclosure before tourism, construction or environmental regulators. Moreover, public promotion is not required by law. However, legal publicity and registration are mandatory for certain elements:

• share purchases must be registered with the corresponding Mercantile Registry;
• real estate must be recorded in the Property Title Registry; and
• any applicable tax obligations must be reported to the DGII.

Generally, there are no restrictions on foreign investment in hotel acquisitions. On the contrary, the central government has actively promoted foreign direct investment in the hotel sector. Legal, tax and regulatory barriers have been progressively dismantled, creating a regulatory framework that affords foreign and domestic investors substantially equal treatment.

Foreign individuals or entities can invest directly in Dominican hotel ventures ‒ either through real estate acquisition or share purchases in local entities ‒ under the same conditions as local investors. Thus, foreigners can fully acquire or own operational hotels or hotel projects without property restrictions, residency requirements (except in cases involving a local branch) or special immigration obligations.

The civil law-based legal system of the Dominican Republic does not have dedicated laws for hotel operations.  These fall under the general principles of private contract law (under the Civil Code), labour law (Law No 16-92), tax law and sector-specific provisions (eg, Law No 158-01 on the Promotion of Tourism Development). As a result, hotel owners and operators have broad contractual freedom to shape their dealings except for public order requirements and mandatory labour standards. Foreign investment is allowed in this sector but only if the transaction meets the registration and reporting requirements set by the DGII.

The hospitality sector features a range of ownership and operational structures within this environment. The main operating models in the industry are independent ownership, hotel management agreements (HMAs), franchise agreements, and lease agreements. The different ownership structures establish different power and financial risk arrangements between the hotel owners and operators.

Many hotels in the Dominican Republic operate independently with their own management teams that do not partner with international hotel chains. Hotel establishments that operate independently usually run from urban locations and non-resort zones while providing owners with complete authority over their management and branding. The independent management of these hotels creates difficulties when it comes to global exposure and large-scale distribution networks.

HMAs have become popular throughout the country, specifically in the resort areas of Punta Cana, La Romana, and Samaná. Under this model, the owner maintains legal ownership of the hotel property but delegates operational management to a professional operator ‒ often a multinational brand ‒ through a services contract. The operator oversees the hotel’s daily operations while also offering brand affiliation along with marketing services, staffing and operational management. HMAs are structured as complex commercial agreements which fall under Dominican private law. The contract must specify the operator’s authority limits and financial arrangements (base and incentive fees) as well as termination provisions, dispute resolution procedures and liability management protocols, especially for labour and tax matters. The operator does not have employer status under Dominican labour law, yet labour authorities and courts could hold the operator responsible as an employer when they maintain operational control over staff or interfere with fundamental employment choices. The risk distribution between operator and owner becomes a key focus during contractual talks.

International hotel groups select HMAs to gain access to the Dominican market through an “asset-light” model that eliminates real estate and development risks. Owners obtain worldwide expertise along with brand value through this arrangement, though they relinquish control over hotel operations.

The Dominican Republic’s hotel industry uses lease agreements sparingly. The property owner grants the operator a lease to the hotel property while the operator takes charge of all operational duties and related risks. Through this agreement the owner obtains predictable income through rent payments or revenue-sharing arrangements, while remaining uninvolved in hotel management operations. The lease model functions mainly in urban locations together with operators who want to grow without capital investment. As hotel operators at the major level tend to choose asset-light models such as HMAs or franchises, lease agreements are less attractive in the present market.

The ongoing growth of tourism in the Dominican Republic has led international hotel brands to establish their presence through franchise agreements because they want to expand their market reach without building properties. The contract type continues to evolve as a collaboration tool that provides dual benefits to both investors who access established brands and franchisors who can grow their market reach without property management responsibilities.

HMAs are a sophisticated contractual arrangement whereby the property owner retains title and financial risk, while delegating the operational control of the hotel to an experienced third-party operator. Legally, the HMA is a sui generis service agreement governed by private law, but its enforceability depends heavily on precise drafting and clearly defined scopes of authority, fiduciary duties, performance metrics, and termination clauses.

Operators under HMAs typically do not assume employer status under Dominican labour law. However, case law and administrative practice have shown that functional employer liability can arise if the operator exercises effective control over personnel. Therefore, indemnity provisions and labour risk allocations are critical in these agreements.

HMAs are commonly used in resort developments, particularly in Punta Cana and other zones benefiting from Law No 158-01, commonly referred to as the CONFOTUR Law. Their enforceability is enhanced when coupled with parallel agreements such as technical services, brand licences and pre-opening services, and is often governed by foreign law but subject to Dominican law regarding property, taxation and labour.

The hotel property becomes subject to leasing under a lease agreement when a third-party operator or hospitality group takes responsibility for managing the business in exchange for rent payments. The commercial lease (bail à loyer commercial) regulates this business arrangement in accordance with the Civil Code and jurisprudential norms.

The lessee assumes full responsibility for operating the business and managing the finances while bearing all operational and financial risks. The lessor maintains independence over the business operations while having the right to enforce rent payments and maintenance obligations as set out in the lease agreement. The lease term ranges from ten to 25 years, while offering renewal options, purchase opportunities and profit-sharing arrangements.

The agreements must be drafted to meet Dominican real estate law requirements, which include notarisation and Title Registry Office registration when necessary. The lease structure should be designed to preserve tax exemptions under Law No 158-01 in order to avoid any unintended forfeiture of these incentives.

From a legal point of view, the hotel franchise contracts signed in the Dominican Republic are based on free will, with a marked influence of Anglo-Saxon comparative law, which requires a legal effort to adapt and harmonise international standard clauses with local legislation. However, this tension between contractual sophistication and a regulatory vacuum poses challenges that go beyond legal technique and require a strategic and interdisciplinary approach.

Legal Nature and Contract of Adhesion

In Dominican practice, hotel franchise agreements typically manifest themselves as adhesion contracts. The franchisor imposes a standardised contract that reflects a global brand policy, leaving little room for negotiation with the franchisee. This configuration responds to the need to preserve the uniformity of the system, the protection of intangible assets and the consistency of the guest experience at the international level.

From a legal standpoint, this adhesive nature does not prevent its validity, but it does require a critical review from the perspective of Dominican civil law, especially regarding clauses that may be abusive or disproportionate. The principle of contractual good faith and the balance of benefits are standards that, although implicit, can be judicially invoked in situations of manifest disadvantage or violation of fundamental rights of the franchisee.

Legal and Commercial Structure of the Contract

The hotel franchise contract is based on four fundamental pillars. The first is the trade mark licence, which allows the franchisee to commercially exploit a registered trade mark, accessing the franchisor’s own reservation, marketing and management systems. This licence is always temporary, limited, non-exclusive and non-transferable, and is usually linked to a specific hotel project, with territorial and category restrictions.

Second, the contract establishes a detailed economic scheme that includes initial fees, periodic royalties calculated on gross revenues, contributions to marketing funds and payments for ongoing technical services. This design seeks to ensure recurring revenues for the franchisor, regardless of the economic performance of the hotel. Hence, this model allows brands to expand with low financial risk, transferring operational responsibilities to the franchisee.

A third component consists of operational obligations and brand standards, which are set out in extensive manuals that regulate everything from architectural design to care, sustainability, quality and safety protocols. These standards are regularly audited, and non-compliance may result in contractual penalties, improvement plans or early termination. This approach provides a form of indirect control, whereby the franchisor preserves its reputation without directly assuming the day-to-day management of the hotel.

These operational requirements also include rigorous technical and architectural criteria, imposed by the franchisor as a condition for maintaining the visual and functional coherence of the brand system. In Dominican cases, it is common for plans, materials, structural specifications and interior design to be subject to prior approval by the international franchisor. Although these requirements respond to foreign regulations, and in many cases exceed local standards, they do not represent substantial difficulties compared to national permitting, providing they are properly presented within the administrative process and with local technical support. On the contrary, this level of demand has raised the quality of the real estate product and facilitated its approval by authorities such as MITUR and the municipal Urban Planning Directorates.

Lastly, the contract usually includes territorial exclusivity clauses, limitations on association with other brands, conditions for the assignment of the contract, and preferential rights of first refusal or acquisition by the franchisor in the event of a possible sale of the property. These provisions are supported by comparative doctrine, as they protect the integrity and coherence of the commercial network of the brand.

Applicable Legal Regime and Regulatory Challenges

The Dominican Republic does not have a special law on franchises, so these contracts are based on the autonomy of the will enshrined in the Civil Code. However, their execution is conditioned by multiple complementary regulatory frameworks. In the first place, Law No 20-00 on Industrial Property requires the local registration of the trademark for the commercial use to be legally valid and protected.

Secondly, foreign royalty payments are subject to tax withholding, according to the Tax Code, which may substantially affect the profitability of the project if an adequate tax structure is not designed, or a double taxation avoidance treaty is not applied.

Likewise, Law No 358-05 on Consumer Protection imposes standards of transparency, objective responsibility for the service rendered and dispute resolution mechanisms that must be respected by the franchisee as the direct provider of the hotel product. Likewise, if the project is subject to the incentives of Law No 158-01 on Promotion of Tourism Development, the franchise contract may be subject to review by the Tourism Development Council (CONFOTUR), to ensure its compliance with the regulatory and tax requirements of the special regime.

Implementation and Adaptation Challenges

One of the main challenges posed by this type of contract is its adaptation to the local legal reality, since many contractual models come from Anglo-Saxon law, where principles and mechanisms different from those of the Dominican civil system prevail. This results in difficulties related to the enforcement of unilateral termination clauses, choice of jurisdiction, limits to liability, among others. The UNIDROIT Guide on master franchise agreements has highlighted the need to adapt these contractual models not only to the substantive rules of the host country, but also to its commercial practices and cultural expectations.

Likewise, when the franchise agreement is implemented in parallel with a hotel operating agreement and a development agreement, legal co-ordination between all the instruments becomes critical. An error in the harmonisation of these documents can generate internal conflicts of interpretation or gaps in the allocation of responsibilities, with both legal and commercial consequences.

In short, the hotel franchise contract in the Dominican Republic is a robust, complex and highly strategic instrument that requires rigorous technical execution, a thorough reading of the local regulatory environment, and a clear and realistic business vision. It is not simply about using a brand: it is about building, maintaining and protecting a contractual relationship that, if well managed, can transform the dynamics of a hotel project and consolidate it within a global ecosystem, which implies a network of reciprocal obligations whose success depends both on the legal text and the quality of the relationship between the parties.

The favourable investment environment in the Dominican Republic drives collateral growth in the financing options offered by the market. In hotel transactions, the most common types of financing are the following.

• Nominative shares ‒ financing through investment in nominative shares in limited liability companies and capital companies.
• Contributions in nature – the purchase of real estate in the Dominican Republic as contributions in nature to the project developer.
• Loans and lines of credit – the Dominican banking sector offers attractive financing options in the hotel sector in the Dominican Republic. It offers various investment products to interested developers and investors, providing alternatives for the construction, development and management of hotels.
• Investment trusts – through this investment vehicle, investors obtain the highest return on their investment through hotel management and room sales. 
• Investment funds ‒ investment funds offer financing to tourism projects in the Dominican Republic, especially in the hotel sector.

In the Dominican Republic, there are laws to encourage foreign direct investment (FDI), thus promoting foreign investors to finance different types of businesses in the country – in particular, the hotel sector. Foreign investors have the same rights and obligations as Dominican nationals investing in the country.

This equal treatment of nationals and foreigners, enshrined in the Magna Carta, provides an ideal environment for FDI in the Dominican Republic. There are also organisations such as the CEI-RD, whose objective is to promote foreign investment by organising international exposure forums to attract investors to the country.

It is also necessary to highlight the special incentives provided by Law No 158-01 for the promotion of tourism, which promotes foreign investment without restrictions in hotel projects. The main objective of this law is to create an ideal environment for attracting foreign investors. In short, the Dominican Republic, rather than establishing restrictions on foreign investors, actively promotes foreign investment through special laws.

The main tax implications in hotel transactions depend on their operating structure. For hotels engaged in regular economic activities, the following tax considerations must be taken into account.

• Income Tax (ISR) – ISR is set at 27% on net profits, with potential deductions for operating expenses in accordance with the Dominican Tax Code.
• Tax on the Transfer of Industrialized Goods and Services (ITBIS) ‒ known as VAT in other jurisdictions, ITBIS is applied at a rate of 18% on services such as lodging, food, beverages and events.
• Selective Consumption Tax (ISC) ‒ ISC is indirectly applied to products sold in hotels, such as alcohol, cigarettes and tobacco.
• Real Estate Property Tax (IPI) ‒ the IPI is a 1% annual tax on the real estate asset value, applicable to legal entities.

If the operation is structured under a lease model, the following specific tax implications apply.

• For the operator (lessee), the lease cost may be considered a deductible expense for ISR purposes, provided that proper supporting documentation is available.
• The lessee must also fulfil all regular tax obligations, such as payment of ISR on operations, periodic filing and payment of ITBIS, and contributions to the Social Security Treasury (TSS). The lessee is not subject to IPI.
• The property owner (lessor) must pay ISR on rental income.
• The lessor is also required to apply ITBIS to rental charges for commercial leases.
• Additionally, the lessor must pay the IPI on the leased property.

Franchised hotels entail additional specific tax implications, for example:

• Dominican tax residents are required to withhold 27% of ISR on payments made abroad to the franchise; and
• payments for technical services, system usage, and royalties may be deductible, provided they are duly supported by appropriate legal documentation.

Hotel projects benefit the most from the incentive, exemption, and subsidy regime in the Dominican Republic. The Dominican legal framework includes Law No 158-01, promoting tourism development in underdeveloped areas and emerging tourist zones in provinces and localities with high tourism potential.

Law No 158-01 stablishes CONFOTUR as the regulatory ‒ and enabling ‒ body of the applicable exemption regime. CONFOTUR has the authority to issue provisional and definitive classifications, which are prerequisites for obtaining the benefits of the incentives and exemptions.

Specifically, Law No 158-01 grants the following benefits, applicable only to projects located in geographical areas classified by law as tourism zones:

• developers investing in new tourism projects may deduct their total investment at a rate of up to 20% annually from their net taxable income;
• 100% exemption from ISR;
• 100% exemption from IPI;
• 100% exemption from municipal taxes levied for construction permits, including land purchase transactions;
• no withholding obligations on financing; and
• 100% exemption from import taxes, fees, duties, surcharges, and ITBIS applicable to equipment, materials, and furniture required for the initial furnishing and commissioning of the tourism facility.

It is important to note that the tax exemption period is 15 years, starting from the completion of construction and outfitting of the approved tourism project.

In the Dominican Republic, the Land Management Law regulates everything related to the classification and use of land, in addition to other sectorial norms and complementary regulations. The Land Management Law classifies land as urban and rural. When referring to the types of use that fall within the qualification of “urbanised land use”, “tourist use” is recognised as a planning instrument. This applies to cases where the predominant activity developed on the land is essentially dedicated to the enjoyment of natural and cultural attractions and recreation.

Likewise, regarding the land use classification, MITUR highlights the “Hotel Accommodation Land Use”, which specifically includes lodging services such as hotels and hostels. These provide non-permanent rooms for short-term stays. On the other hand, if the zoning is to be modified or an exception is requested, an application must be made to the local authority – ie, the municipal council, specifically addressed to the Urban Planning Directorate of the corresponding municipality. The request must be accompanied by the plans, as well as the technical studies on environmental impact, which justify the change or exception. This request must be approved by the Municipal Council, which will proceed to issue a municipal resolution upon approval.

Within the framework of the development of hotel projects in the Dominican Republic, there are different regulations govern the aspects related to their construction and remodelling. Law No 158-01 on the Promotion of Tourism Development is one such legal instrument, which – although mainly dealing with the incentives for classified projects – establishes parameters that must be followed in the framework of their development and construction.

In addition, Regulation No 2115 on Classification and Norms for Hotel Establishments and Resolution No 818-03 regulates the operation of hotels. It is also necessary to consider the provisions contained in Law No 675 on Urbanisation, Public Ornament and Construction, as well as Law 64-00 on the Environment and Natural Resources, to ensure that the project complies with environmental guidelines. Additionally, it is necessary to take into account the Law of Territorial Planning to ensure compliance with regulations related to land use, road impact, the compatibility of the project with the environment where the construction will take place. Urban standards, including those related to the maximum height, density, construction index, access and the provision of public services, must also be adhered to.

In order to obtain a construction permit for a hotel project, it is necessary to complete the architectural plans and designs, covering all essential structural aspects. The corresponding technical studies must be carried out in parallel. In addition, a descriptive report of the project must be prepared, containing all relevant aspects of and information on the project.

The plans must then be submitted to the Urban Planning Office of the corresponding municipality, along with the required fees. Once the plans are submitted, the approval of the Board of Aldermen must be obtained, who before granting this permit usually attend technical consultations and submit the project to public hearings. The project must also be submitted to the MITUR for design approval.

All this is without prejudice to the additional sector licences or certificates of no objection that must be obtained from the Ministry of Public Works and the Ministry of Environment and Natural Resources. The process usually takes three to six months. For remodelling projects, the process is basically the same, requiring the submission of updated plans indicating the modifications to be made.

In the Dominican Republic, different actors may object to a hotel construction or remodelling permit. Objections may come from authorities such as the Ministry of the Environment, local municipalities, MITUR, or the Directorate of Urban Planning, especially if the project does not comply with environmental, land use or planning regulations. Any individual, neighbours, neighbouring communities, civil or environmental organisations that consider that the work violates registered or acquired rights, has a negative impact on the environment or their quality of life may also object. These objections can be channelled through administrative channels ‒ before the institution granting the permit ‒ or legal channels, such as contentious-administrative appeals or amparo actions in cases of violation of fundamental rights.

To limit these objections, advance planning is key. Legally safeguarding the project, complying with all regulatory requirements and presenting solid technical studies, helps to reduce risks. Similarly, building community relations from the initial stages generates social legitimacy ‒ opening spaces for dialogue, communicating transparently and showing the concrete benefits of the project (employment, sustainability, public access) can neutralise resistance. Involving independent experts, adapting the design based on reasonable observations and integrating elements of public value, such as green areas or community access, also helps to strengthen support. Ultimately, a coherent communications strategy and a visible commitment to the environment are key to minimising objections and moving forward with legitimacy.

The conversion of hotels to other uses in the Dominican Republic is not officially prohibited but is subject to a case-by-case evaluation by the corresponding authorities. These conversions must comply with a set of regulatory requirements, especially related to licensing, reclassification, zoning and technical permits.

The key point to consider here is land use. Even if a property is currently registered as a hotel, when altering its use, it is necessary to ensure that the new purpose is permitted by local land use planning regulations. If this is not the case, a change of use will be required which involves urban studies and, in some cases, public consultation processes. In addition, any conversion involving physical works ‒ such as structural redesign or adaptation of spaces ‒ must have a building or remodelling permit.

If the hotel site is in a tourist zone or is regulated by MITUR, then it may be necessary to apply for removal from the tourism registry, or for the project to be reevaluated. This is especially relevant if the hotel was receiving tax incentives or exemptions under development laws.

In summary, converting a hotel into any other type of property is possible from a legal standpoint, but requires careful technical, legal and management planning that is aligned with regulations and local and sectoral requirements, as appropriate.

In the Dominican Republic, the intervention of properties considered emblematic or historic is governed by a legal framework that seeks to preserve their cultural and architectural value and avoid any compromising alterations.

Law No 318 on the Cultural Heritage of the Nation establishes that the Dominican State is responsible for safeguarding the properties that constitute cultural heritage, which implies their prior identification, description and delimitation. Any intervention in these properties requires the express authorisation of the Ministry of Culture.

In addition, Regulation No 4195 on the Office of Cultural Heritage (now the National Directorate of Monumental Heritage) establishes that works carried out on buildings declared “national monuments” must be supervised by this Directorate.

If a property declared emblematic or historic is intended for tourism purposes, it must comply with the requirements established by the local municipalities, who have exclusive competence in the preservation of the historic and cultural heritage within their jurisdictions. In addition, the project must obtain a certificate of land use issued by MITUR and the authorisation or building permit from the Ministry of Housing and Buildings.

The Dominican State, through the Ministry of Culture and MITUR, must carefully supervise the design and execution of the works to ensure that they are carried out in a manner that preserves the historical and cultural value of the property. This supervision must be carried out in accordance with the best standards and best practices established by UNESCO (United Nations Educational, Scientific and Cultural Organization) for the preservation of cultural heritage.

Any person interested in establishing a hotel in the Dominican Republic, after having obtained the relevant authorisations for land use, construction and environment, must apply to MITUR for an operating licence. MITUR is responsible for regulating and supervising tourism services and activities in the country, as established in the Organic Law of Tourism No 541 and its amendments, as well as in Regulation No 2115 on Classification and Standards for Hotel Establishments, as amended by Decree No 818-03.

Through the Tourism Quality Management Unit (UCCT) of MITUR, the applicant must submit the legal, financial and technical requirements listed, and pay the administrative fee based on the number of rooms in the establishment. Once the documents have been submitted and the on-site inspection by MITUR has been carried out, the licence is issued for a period of one year, which must be renewed upon its expiry for the same period.

Along with the issuance of the operating licence, the operator is given a tourist credential called Tucard, which must be displayed in a visible place within the establishment. This card has a QR code linked to the Registro Único Turístico (RUT), allowing users to digitally verify the status of their tourist establishment. In addition, MITUR offers public access to the National Tourism Registry, where it is possible to check whether a hotel is authorised to operate.

The Dominican hotel sector has intensified its commitment to sustainability by adopting international standards that promote responsible practices in the use of resources (water, energy and land), as well as in solid waste management, waste water treatment, and the reduction of greenhouse gas emissions. These standards not only respond to the growth of tourism but also reflect a rising awareness among tourism operators and stakeholders of the need to comply with clear social responsibility policies to mitigate their environmental impact ‒ particularly relevant in a country as vulnerable to climate change as the Dominican Republic.

Among the most prominent certifications are Green Key and Green Globe, which are both internationally recognised and adopted by various establishments and hotel chains in the country. In addition, MITUR has implemented the “Qualitur” tourism quality standards, which, while focused on improving the quality of tourism services, also assess certain environmental and socio-economic aspects. These policies are accredited by Intertek’s Ecocheck Standard, which in turn aligns with the criteria set by the Global Sustainable Tourism Council.

Nevertheless, the Dominican Republic must continue to implement policies and actions in the tourism sector to ensure its long-term sustainability ‒ especially by encouraging all-inclusive resorts to obtain sustainability certifications, given their significant impact on the tourism value chain due to higher food waste, energy consumption and plastic use.

In the Dominican Republic, hotel transactions that involve the transfer of business assets or operations are governed by employment laws designed to protect workers’ rights. Under the Dominican Labour Code, employment contracts are not terminated by the mere transfer of a business. Instead, the new owner automatically assumes the role of employer, preserving all pre-existing labour relationships, including employee seniority, accrued benefits, and pending obligations such as holiday leave and severance rights.

This continuity is established in Article 63 of the Labour Code, which states that in the event of a change of ownership, the new employer is subrogated into all labour-related rights and duties of the previous employer. Both the outgoing and incoming parties may be held jointly liable for obligations that arose prior to the transfer, unless clearly settled through contractual arrangements and proper documentation.

While most employees are typically retained under the new employer, there may be situations where some are not retained or object to the new terms of employment. In such cases, the law may consider this as a dismissal without cause, entitling the employee to severance pay as outlined in Article 80. The calculation is based on the employee’s tenure and salary. Additionally, employers must adhere to the applicable notice period or provide equivalent compensation, as required under Article 76.

In practice, labour due diligence is essential in any hotel acquisition. Buyers should review employment records, confirm compliance with labour obligations, and assess potential liabilities. Although not mandatory, notifying the Ministry of Labour and clearly communicating with employees during the transition helps avoid misunderstandings and future disputes. For hotel transactions, integrating labour compliance into the deal structure is not only a legal requirement ‒ it is a strategic necessity.