Hotel Management & Transactions 2026 Comparisons

The main sources and areas of law for hotel transactions are:

• the Dominican Civil Code, which governs contractual obligations, the sale and purchase of assets, as well as leases and other civil law matters;
• Law No 479-08 on Commercial Companies and Individual Limited Liability Enterprises, which governs corporations in general, and the manner in which share transfers, corporate approvals, mergers and other corporate procedures are executed; this legislation is very important in hotel transactions in general, and particularly in share transfer deals;
• Law No 108-05 on Real Estate Registry, which governs title registration, encumbrances, transfers of real estate rights and related land registry proceedings;
• tourism legislation, particularly:
1. Law No 158-01 on the Promotion of Tourism Development, also known as CONFOTUR Law, which establishes tax incentives for tourism projects in specific areas of the country;
2. Law No 541, Organic Tourism Law of the Dominican Republic; and
3. Decree No 818-03, which regulates the licensing and classification of hotels and other tourism establishments;
• the Dominican Labour Code, instituted through Law 16-92, and complementary regulations, such as the Rulebook No 258-93, which are also relevant to hotel transactions in the case of sales or transfers, as employees are retained as part of the hotel’s assets;
• environmental law, particularly the General Law on Environment and Natural Resources No 64-00, which is also highly relevant to hotel transactions as it contains important land use and zoning regulations which must be taken into account;
• Law 20-00 on Intellectual Property, which is particularly significant where the hotel operates under a brand, franchise, or other intangible assets that enhance the value of the business and its attractiveness to investors; accordingly, intellectual property rights must be carefully considered in any hotel transaction, including ownership of those rights and whether they will be transferred to the purchaser (where such rights are licensed or franchised, it is also necessary to determine whether the purchaser will continue under the existing licence or franchise arrangement, subject to the consent of the licensor or franchisor);
• the Dominican Tax Code, instituted through Law 11-92, which is applicable depending on the nature of the transaction, as it may involve different taxes such as capital gains tax, income tax, VAT issues, as well as the transfer of usage of the aforementioned tourism incentives; and
• Law 155-17 on Money Laundering and the Financing of Terrorism, and know-your-client obligations imposed by the aforementioned law, which are relevant in hotel acquisitions, particularly in cases where the transaction involves investors who are foreign, or complex corporate structures which make the identification of the final beneficiary difficult.

Hotel transactions in the Dominican Republic are commonly structured either as individual asset deals or share deals for the different companies who hold the hotel’s operation. The preferred structure in each case will depend on tax considerations, the condition of the title and permits, the existence of financing or encumbrances, the desired treatment of employees, the transferability of licences and incentives, and the allocation of liabilities between seller and purchaser.

Asset Deal

In an asset deal, the purchaser acquires specific assets related to the hotel, such as the real estate, buildings, furniture, fixtures and equipment, contracts, intellectual property, permits, licences and operating assets. This structure allows the purchaser to select the assets and liabilities it wishes to assume, subject to applicable legal restrictions. Asset deals’ main disadvantage is that they require individual transfer formalities, including real estate transfer registration, payment of applicable transfer taxes, assignment of contracts, amendment or reissuance of permits and licences, and review of whether tourism incentives or operational authorisations can be assigned or must be newly obtained.

Shares Deal

In a share deal, the purchaser acquires the shares or quotas of the company/companies that own and/or operate the hotel. This structure may be more efficient in such cases where the hotel-owning company already holds the assets, licences and other applicable permits. Likewise, a share deal in turn means that the seller does not need to transfer each asset individually to the purchaser, which simplifies the transaction’s execution and, in some cases, ensures its effectiveness. However, in share transfer deals, the purchaser assumes the company’s existing liabilities, which necessitates a more extensive and complete due diligence, as well as representations, warranties and indemnities to be given by the seller at the time of closing.

In practice, the structure chosen by the parties is usually driven by tax efficiency, title and permitting considerations, any applicable incentives, and the purchaser’s appetite for assuming historical liabilities.

The Publicity of Hotel Transactions in the Dominican Republic

In both asset deals and share deals, confidentiality provisions are included in letters of intent, memoranda of understanding, and purchase agreements. However, while hotel transactions are generally capable of being kept commercially confidential, certain ownership, corporate, tax, and real estate information may become available through public or official records depending on the transaction structure.

Publicity in Asset Deals

Asset deals and their information are public or private, depending on the assets’ procedures to obtain the legal transfer of the property. 

For real estate procedures, the transfer of titles/deeds is executed through a public procedure through the competent Registry of Titles. Accordingly, the parties must prepare documentation complying with the statutory requirements for the transfer procedure, and the documentation used for these purposes will remain in the Registry of Titles’ database, accessible to the public.

For motor vehicle purchases, the transfer must be executed through a public procedure through the General Directorate of Internal Taxes (DGII) and the documents submitted for registration purposes remain in the institution’s public database.

For intellectual property assets such as trade marks, trade names, logos and other rights used for the hotel’s operation and branding, transfers of ownership need to be registered before the National Office of Industrial Property (ONAPI) in order to be effective against third parties. In such cases, ownership information is publicly available through the intellectual property records managed by ONAPI.

On the matter of furniture, equipment, inventory, supplies, and other movable assets, the transfer is documented privately and not available generally to the public, unless there is a specific notice or consent required by law.

Publicity in Share Deals

The execution of share deals is public as documents executed by the parties for the transfer of the shares in question are registered before the Mercantile Registry (Registro Mercantil), which is handled by the appropriate Chamber of Commerce. This procedure is performed in order to update the information contained in the company’s Mercantile Registration Certificate. The publicity of these transactions is a legal requirement imposed by Law 479-08 to ensure that the transfer of the shares is enforceable against third parties, and it entails that such publicly available corporate records show information regarding the new shareholders, managers, capital structure, registered office and corporate standing.

Foreign investors are allowed to acquire hotels in the Dominican Republic. From a legal framework standpoint, Law No 16-95 on Foreign Investment expressly recognises direct foreign investment in Dominican companies and in real estate located in the Dominican Republic, thereby permitting foreign investors to structure and carry out hotel acquisitions.

There is generally no requirement for a foreign investor to have Dominican nationality, residence, or a local partner to acquire a hotel. However, the acquisition will always be subject to the ordinary legal requirements applicable to the transaction, including corporate, tax, real estate, tourism, environmental, labour, intellectual property and anti-money laundering requirements.

The Dominican Republic is well known for its tourism activity in the region, considered the second most visited destination in Latin America and the Caribbean. In 1969, the government declared the state promotion of tourism to be of national interest and designed the regulatory framework for tourism development, creating the Corporation for the Promotion of the Hotel Industry and Tourism Development (Corphotels) to manage state-owned hotels and the Department for the Development of Tourism Infrastructure (Infratur) to finance tourism projects. This support for investment in tourism created a propitious environment for the promotion and development of large, multi-service resorts, driven primarily by private capital and the “all-inclusive” model.

Through the years, tourism has become the strategic engine of the Dominican economy and has evidenced a wide range of structures allowing its growth in time, registering by 2026 around 816 hotels nationwide and 81,612 hotel rooms, operating under diverse ownership and operation schemes, the most common being hotel management agreements (HMAs), franchise agreements, privately owned hotels, and, to a lesser extent, hotel lease agreements.

Hotel management agreements are one of the most prevalent structures in the Dominican hospitality industry, especially for large resorts and internationally branded hotels located in popular destinations such as Punta Cana and La Romana, allowing operators to expand without owning the real estate properties while providing their operational know-how and access to international expertise and distribution systems. Franchise agreements are also becoming popular in the Dominican market amongst investors with hospitality experience and internationally branded hotels, as brands seek market expansion without operating hotels.

Although a substantial proportion of hotels in the Dominican Republic are operated by internationally recognised brands under management or franchise agreements, there remains a significant market for independently owned and operated hotels. This model is particularly common among boutique hotels, family-owned establishments, small and medium-sized urban hotels, and eco-tourism projects, which continue to grow in popularity. Under this structure, owners retain full control over operations and are responsible for managing branding, marketing, and commercial strategy independently.

Hotel lease agreements represent another operating model within the Dominican hospitality industry. Under these arrangements, the owner receives a fixed rental income while having little or no involvement in the hotel’s day-to-day operations, and the operator assumes the associated operational and commercial risks. This structure is most commonly used for government-owned or institutionally held real estate assets, urban hotels, and certain long-term commercial arrangements.

Regardless of the structure selected, investors should undertake a comprehensive review of the property and any related assets, together with the applicable legal framework, licences, and permits, with particular emphasis on legal, regulatory, financial, and tax due diligence. A key consideration when evaluating investment structures in the Dominican Republic is whether the hotel benefits from the incentives available under Law No 158-01 (CONFOTUR). This special regime grants a range of tax exemptions and other benefits for the development and operation of tourism projects, including hotels, and may have a significant impact on the economics and structuring of the investment.

Management agreements are primarily governed by the principle of party autonomy and the general contractual provisions outlined in the Civil Code. Their legal nature is typically that of a civil and commercial mandate, combined with elements of a service agreement pursuant to which the manager provides hotel management services on behalf of the owner.

Hotel management agreements typically contain detailed provisions governing the relationship between the hotel owner and the manager, as well as the operation of the hotel. Key clauses generally include:

• appointment, authority and decision-making powers, establishing the manager’s appointment, scope of authority, responsibility for day-to-day operations, and authority to appoint and supervise personnel;
• term and performance obligations, setting out the duration of the agreement, renewal rights, performance standards, and the manager’s obligations regarding the operation and profitability of the hotel;
• pre-opening and pre-operational matters, including responsibility for pre-opening expenses, marketing activities, staff recruitment, training, and other costs incurred before the hotel commences operations;
• financial management provisions, such as the preparation and approval of annual operating budgets, funding of working capital, accounting procedures, financial reporting obligations, and audit rights;
• compensation arrangements, including the manager’s entitlement to base management fees, incentive fees linked to financial performance, reimbursement of expenses, and other compensation mechanisms;
• commercial and revenue management provisions, regulating room rates, discount policies, complimentary accommodations, special rates, loyalty and membership programmes, and revenue optimisation strategies;
• maintenance and capital expenditure obligations, addressing repairs, maintenance standards, capital improvements, and the respective responsibilities of the owner and manager regarding the preservation of the property;
• insurance requirements, specifying the insurance policies to be maintained, allocation of insurance costs, and procedures for handling claims and losses;
• intellectual property and brand rights, governing the use of trade marks, trade names, operating systems, proprietary know-how, and other intellectual property associated with the hotel brand;
• owner oversight rights, including inspection and audit rights, access to records, reporting obligations, and procedures for monitoring the manager’s performance;
• suspension, termination, and handover provisions, establishing the circumstances under which the agreement may be suspended or terminated, the consequences of termination, and the procedures for the transition of hotel operations; and
• liability and accountability provisions, addressing standards of care, indemnification, limitation of liability, dispute resolution mechanisms, and accountability for the performance of the manager’s duties.

Together, these provisions allocate operational authority, financial responsibilities, performance expectations, and risk between the hotel owner and the manager, ensuring the efficient management and operation of the hotel throughout the term of the agreement.

Hotel lease agreements are primarily governed by the general contractual provisions outlined in Law 85-25 on Real Estate Leases and Evictions and the Civil Code.

Hotel lease agreements typically contain several key provisions that define the rights and obligations of both the landlord and the tenant. The most common clauses include:

• the object of the lease, identifying the assets and rights that are being leased (in addition to the real property itself, the lease may include movable assets, equipment, furniture, machinery, inventories, and other assets necessary for the operation of the business);
• the term of the lease, establishing its duration, including the commencement date, expiry date, renewal options, and any conditions for extension (given the nature of hotel operations and the significant investment often required to adapt the property and obtain the necessary licences and permits, hotel leases are commonly entered into for long terms);
• the price of rent and other fees, regulating the amount of rent, payment schedules, adjustment mechanisms, and any additional fees payable (in some cases, the lease may include revenue-sharing arrangements, where the lessor receives variable fees related to the occupation or income from the exploitation of the hotel);
• guarantees such as security deposits in accordance with Law 85-25, which are often required to secure the performance of the tenant’s obligations under hotel lease agreements (in some cases, the parties agree to structure escrow arrangements, under which funds are held by a third party until specific contractual conditions are met, and performance bonds or guarantees, which provide financial protection to the landlord in the event of tenant default);
• clear allocation of responsibility for repairs, maintenance, and replacement of property components, while also establishing insurance policies that must be maintained by each party, such as property insurance, liability insurance, and business interruption coverage;
• in some lease agreements, clauses granting the tenant the right to acquire the leased property under predetermined terms and conditions;
• licence and permit clauses in hotel lease agreements, determining which party is responsible for obtaining, maintaining, and renewing the licences, permits, and regulatory approvals necessary for the operation of the hotel;
• clauses in hotel lease agreements that interact with other contractual arrangements essential to the business, such as concession agreements, supply contracts, franchise agreements, and service agreements; these clauses set out how the leasing arrangement affects these agreements; and
• suspension and termination, establishing the circumstances under which the agreement may be suspended or terminated, the consequences of termination, and the procedures for the transition of hotel facilities are also contemplated.

In the case of governmental hotels, leases are managed by the Corporation for the Promotion of the Hotel Industry and Tourism Development (Corphotels).

Hotel franchising agreements are governed by the principle of party autonomy and the general contractual provisions outlined in the Civil Code. Dominican law does not have a special framework for franchises. Parties freely design the key aspects that work better for the relationship, and the hotel owner or operator obtains the right to use the brand, reservation systems, operational standards, and know-how of a hotel chain in exchange for the payment of fees and compliance with brand requirements.

The asset-light model in hotel franchising is most common in the Dominican Republic, as major brands focus exclusively on branding, marketing, and management while allowing owners to invest and handle the operations. While hotel franchise contracts are frequently combined with hotel management agreements, franchise agreements typically contain several key provisions governed by specific Dominican laws, such as:

• IP licensing provisions granting the right to use the franchisor’s trade name, logos, and trade dress, as well as know-how transfer that includes trade secrets, processes, operational manuals, and ongoing technical support; most of these rights will be governed by Law 20-00 of Industrial Property;
• franchise fee provisions, which establish the royalties, marketing contributions, reservation system fees, and technology fees, among others; these rules are governed by Law 11-92, which creates the Dominican Tax Code;
• clauses describing and establishing the rules to comply with the brand’s standards, including the franchisor’s requirements to improve the property and assets, food and beverage operations, health protocols, and personnel programmes;
• territoriality rules limiting competition from other hotels operating under the same brand, and agreement provisions on future developments in the area that may affect contractual rights;
• compliance provisions requiring adherence to Dominican laws governing licences and permits, including Regulation No 2115 on Classification and Standards for Hotel Establishments and Decree No 818-03; health and safety according to Law No 42-01 General Health Law; labour regulations according to Law 16-92; and tax obligations pursued by Law 11-92 and its accessory rulings, among other laws relevant to hotel operations; and 
• rules on termination of franchise agreements, including specific rules in case of non-compliance.

Hotel transactions in the Dominican Republic are financed through a variety of options available, to be determined according to the project size, the location of the hotel, the warranties to be provided, and the profile of the investor. The alternatives include one or more of the following financing scenarios combined:

• equity contribution, where investors contribute directly by injecting capital into the companies and acquire participation in the project;
• commercial loans, either from local banks or international finance institutions; the loans are normally secured by a variety of warranties available, including mortgages and liens over the hotel property and assets, pledges of shares, securities over reserve accounts, solidarity bonds, and other securities;
• investment funds offered to finance real estate and tourism projects; and
• other options, including joint ventures and seller financing.

Foreign Investment Law 16-95 imposes no restrictions on foreign investment in hotel financing. The terms of this norm grant national treatment to these types of investments. Foreign lenders are  able to provide loans directly to Dominican hotel projects and may take security over hotel assets, subject to compliance with Dominican corporate, property, tax, and security-interest laws.

The Dominican Republic’s hospitality sector operates under a sophisticated, multi-tiered fiscal environment. Navigating this landscape requires balancing the general provisions of the Dominican Tax Code (Law No 11-92) against the sweeping fiscal incentives granted by Law No 158-01 (CONFOTUR).

While CONFOTUR provides standard 100% exemptions on corporate income tax and VAT (ITBIS) for qualified asset owners for up to 15 years, on new projects and renovations that exceed 50% of the structure, the operational and management structure chosen for a hotel asset fundamentally shifts the tax obligations, withholding exposures, and transfer pricing risks for both owners and operators.

In managed hotels, the owner retains all financial, operational, and commercial risk, while in the leased hotels the brand operator manages daily operations in exchange for fees.

Tax Implications for Managed Hotels

Under a managed hotel, the owner retains the financial and operational risk of the asset. Below we highlight the key tax implications under an HMA:

• Income and Operational Risk: The hotel owner records all operational revenues and expenses. If the project holds a CONFOTUR resolution, the operational profits derived from the hotel are 100% exempt from the standard 27% Corporate Income Tax (CIT).
• Cross-Border Withholding Taxes (WHT): Any payment sent abroad for management fees, trade marks or technical assistance is subject to a 27% withholding tax (Article 305 of the Tax Code).
• Tax on the Transfer of Industrialised Goods and Services (ITBIS): The general rate is 18%. Hotels apply this tax to room rates, food, beverages, and additional services. If the operator is local, ITBIS must be invoiced. If the operator is an international entity, the Dominican owner must account for this via the “reverse-charge” VAT mechanism, unless specifically carved out under specialised project-level CONFOTUR exemptions.
• Transfer Pricing (APAs): Managed all-inclusive hotels face rigorous transfer pricing scrutiny from the General Directorate of Internal Revenue (DGII). Under Article 281 of the Tax Code, the DGII frequently utilises advance pricing agreements (APAs) to benchmark per-capita room rates and ensure that inter-company fees paid to international sales arms or operating networks reflect arm’s length market realities.
• Selective Consumption Tax (ISC) is indirectly applied to products sold in hotels, such as alcohol, cigarettes and tobacco.
• Asset Tax is a 1% annual tax on the real estate asset value, applicable to legal entities.

Tax Implications for Hotel Leases

In a lease structure, the property owner leases the real estate asset to a third-party hotel operator. The operator assumes full operational control and business risk, paying the owner either a fixed rent or a variable rent (turnover lease). The key tax implications in this model include the following:

• Lease Withholdings: If the landlord is a non-resident corporate entity, the tenant operator must withhold 27% on cross-border lease payments. If the landlord is a domestic individual, the corporate tenant must withhold 10% as an advance on the individual’s income tax.
• ITBIS on Rent: Commercial leases are legally subject to 18% ITBIS, which the landlord must charge, and the tenant can typically use as a tax credit against its operational ITBIS obligations.
• 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.
• The lessee is not subject to IPI.
• The property owner (lessor) must pay ISR on rental income.

Tax Implications for Franchises

Under a franchise model, the hotel owner operates the hotel independently but pays an international brand for intellectual property, global reservation systems, and marketing pipelines.

The key tax implications include the following:

• Retention of Operational Profits: The local franchisee retains 100% of the operational profits and commercial risks. Because the franchisee is the direct operator, it fully utilises the CONFOTUR CIT exemption on hotel revenue, if applicable.
• Royalties and Intellectual Property Withholding: Payments to international franchisors are categorised into distinct fee structures, each carrying specific withholding obligations:
1. Brand Royalty Fees: These are treated as intellectual property royalties and subject to a strict 27% withholding tax at the source.
2. System and Marketing Fees: Fees for global distribution systems (GDS), central reservations, or international marketing programmes are generally classified as technical assistance or cross-border services, also incurring a 27% WHT under the Dominican Tax Code.
• Deductibility Restrictions: For the local franchisee to deduct these franchise and system fees from their local accounting records (essential for calculating net asset value or if evaluating non-exempt revenue), the payments must comply with strict transfer pricing documentation, be executed at arm’s length, and have the corresponding 27% withholding fully satisfied and filed with the DGII via the IR-17 form.
• ITBIS Exposure: International franchise fees trigger an 18% ITBIS obligation under the cross-border digital and intangible services rules, requiring the local franchisee to self-assess and remit the tax.

Tax Incentives Under CONFOTUR Law 158-01

Law No 158-01 on Tourism Development Promotion establishes a robust tax incentive framework designed to attract both domestic and foreign capital. These benefits apply to individuals and corporate entities directly promoting, developing, or investing in qualifying tourism activities – such as hotel installations, resorts, and complementary infrastructure – as well as those investing directly with project sponsors.

Approved projects under this regime are granted 100% exemption from the following fiscal obligations:

• corporate income tax – complete exemption from income tax on generated profits for a specified duration, significantly maximising return on investment (ROI) for sponsors and stakeholders;
• VAT (ITBIS) – full exoneration from the tax on the transfer of industrialised goods and services (ITBIS) on construction-related acquisitions, yielding substantial capital expenditure (CapEx) savings during the development phase;
• municipal taxes – comprehensive relief from local and municipal taxes, streamlining the permitting process and reducing ancillary operational costs; and
• customs duties and tariffs – 100% exemption on customs duties for the importation of machinery, equipment, and construction materials required to meet international luxury and hospitality standards (including specialised machinery, water treatment plants, production control laboratories, and high-end fixtures).

These fiscal benefits extend seamlessly to complementary tourist accommodation and facilities within a certified project. This includes villas, residential lots, flats, and marina berths, regardless of whether they are operated directly by the developer or sold to third-party individuals or corporate entities.

The tax incentive is granted for a 15-year term, commencing from the completion date of construction and project equipping. In addition, the statute guarantees absolute fiscal stability, ensuring that no new taxes, levies, fees, or municipal assessments will be imposed on the project during the exemption incentive period.

It is important to note that once the classification is granted, a period of three years is awarded to commence the sustained and uninterrupted operation of the approved project. Non-compliance with this deadline entails the forfeiture of exemption rights; therefore, requesting an extension is essential should the project be delayed.

Land Zoning

In the Dominican Republic, urban planning is regulated by Law No 368-22 on Territorial Planning, Land Use, and Human Settlements. This statute establishes the National Territorial Information System, which aims to set forth the criteria for defining distinct modalities of land use based on the development potential and limitations of the territory.

According to the law, infrastructure intended for tourism should be developed in areas classified as urban territory. This classification considers factors such as density, height, and the protection of impact and buffer zones. Furthermore, the provisions of the maritime zone law and zoning ordinances must be considered.

Permits And Authorisations

In the case of the hotel industry, its development, promotion, and operational oversight in the Dominican Republic are governed by a robust and concurrent regulatory framework. This framework comprises national statutes, environmental decrees, and municipal ordinances designed to regulate tourism incentives, zoning parameters, and structural compliance. Consequently, any new construction, expansion, or renovation within the hospitality sector is strictly subject to the following permits and authorisations, issued in accordance with the specific purpose of use established by the legal framework in each case:

• Land Use Certificate of No-Objection from the corresponding Municipal City Hall, Law No 368-22 on Land Use Planning;
• Certificate of No-Objection from the Ministry of Tourism in accordance with the Resolution No 2115, establishing the classification and standards for hotel establishments, and Resolution No 818-03, enacting the Regulatory Framework for the Operation of Hotel Establishments;
• Environmental Licence, in accordance with law No 64-00 dated 18 August 2000 on the Environment and Natural Resources;
• CONFOTUR classification, Law No 158-01 on Tourism Development Incentives (as amended, including Law No 195-13); and
• Hotel Operating Licence, in accordance with the provisions of Resolution No 2115, which establishes the classification and standards for hotel establishments, and Resolution No 818-03, enacting the Regulatory Framework for the Operation of Hotel Establishments.

Change of Zoning Classification

Law No 368-22 on Land Use Planning contemplates the possibility of modifying land use zoning through municipal land use plans or urban land use delimitation instruments, with the exception of the zoning of protected areas, which shall be regulated by other related laws. In any case, the requirements to obtain a modification of land use vary depending on the type of land in question, such as:

• hazards posed to the population, which allow the cleared space to be occupied for a more suitable land use;
• the condition of the infrastructure, which may induce or lead to other uses;
• the own initiative of the interested parties, provided that the provisions of the law are complied with;
• when the economic development of the territory requires the inclusion of ecotourism land use, pursuant to sustainability criteria; and
• other specific criteria depending on each individual case.

In order to change the zoning classification or to request an exception or variance for hotel use in the Dominican Republic, a technical-legal process must be executed involving both the municipal authorities and the central government.

To this end, a formal request for a Certificate of No-Objection or Land Use Certificate must be filed with the corresponding Municipal City Hall. This requires the submission of a technical file before the Directorate of Urban Planning, including the project’s blueprints, architectural design, property title deed, and the certified boundary and measurement certification.

If the existing zoning parameters do not permit hotel use, a formal request for a land use exception or variance must be submitted to the Council of Councillors. This process requires formal approval via a municipal resolution.

Building and Development Regulations

Regulations regarding height, density, and floor area ratios are not uniform nationwide. Such parameters are governed by Land Use resolutions issued by the Ministry of Tourism (MITUR) through the Department of Planning and Projects (DPP) and by municipal land use plans, which take into account various criteria such as the protection of the coastline, protected green areas, soil permeability, public right-of-way width, the land coverage ratio, and the floor area ratio.

Additionally, there are specific requirements applicable depending on the hotel modality, taking into account the geographic location and operational characteristics of the services, whether they are city, beach, mountain, apartment, cabin, or villa hotels, as well as the hotel categories, for which particular conditions are established regarding general-use facilities and premises for guests.

Parking requirements combine the directives of local municipal governments and the Ministry of Public Works and Communications (MOPC).

• Urban/Business Hotels: The general rule typically requires one parking space for every two to three rooms, plus an additional allocation of 10% to 15% of the total, designated for visitors, commercial areas, restaurants, and independent event halls within the hotel.
• Resorts/Beachfront Hotels: The general rule is one parking space for every four to five rooms.

Fire Protection

Fire safety is strictly regulated by Decree No 818-03 and specifically by the Technical Regulation for Fire Safety and Protection (R-032) issued by the MOPC; accordingly, hotel facilities must be equipped with:

• hydraulic systems and fire extinguisher(s) in all general premises and guest room floors;
• autonomous emergency lighting, providing a minimum of three foot-candles for exits, corridors, and stairwells;
• audible acoustic alarm device; and
• emergency exit signage and “no smoking” indicators in locations where smoking constitutes a fire hazard.

Disability and Accessibility

Accessibility in hotel infrastructure is protected by Law No 5-13 on Disability in the Dominican Republic and MOPC Technical Regulation M-007 (Regulation for the Physical Plant Design of Basic Facilities for Persons with Disabilities), which prescribe barrier-free architectural design for persons with disabilities, establishing accessible routes, parking spaces, and guest rooms for persons with reduced mobility.

The process for obtaining a hotel building permit is divided into several consecutive stages involving different ministries and public offices, given the high impact of such projects. In order to obtain the permits, the following steps must be completed:

• Obtaining the Land Use No-Objection Certificate: This is issued by the Urban Planning Office (Oficina de Planeamiento Urbano) of the corresponding municipality. Through this process, it will be validated that the land is properly classified and zoned for hotel/commercial use, respecting municipal setbacks and regulations. This process typically takes approximately two months.
• Preliminary Architectural Project Plan Approval: This stage involves the evaluation of the proposed preliminary project by means of architectural plans to verify compliance with current regulations. This process typically takes approximately two months.
• No-Objection Certificate Issued by the Department of Planning and Projects (DPP) of the Ministry of Tourism (MITUR): During this process, the preliminary architectural project is evaluated to verify that it complies with the density requirements (rooms per hectare), maximum heights, land coverage ratio (COS), floor area ratio (CUS), and specific land use planning guidelines of the area. This process typically takes approximately 50 to 60 working days.
• Classification Before CONFOTUR: If the project intends to leverage the tax incentives and benefits provided under Law No 158-01, it must undergo this classification process, which also takes approximately 50 to 60 working days.
• Environmental Licence Before the Ministry of the Environment and Natural Resources (MIMARENA): The ministry is responsible for evaluating the environmental impact of the project. This process typically takes approximately 120 working days.
• Approval of Plans and Building Permit Before the Ministry of Housing, Habitat and Buildings (MIVHED): This is the final stage concerning engineering, architecture, and safety. Once the structural, electrical, sanitary, and safety plans have been approved, and upon payment of the corresponding construction fees and taxes (MIVHED fees and municipal building taxes), the MIVHED formally issues the Building/Renovation Permit. This process usually takes between 6 and 12 months, depending on the size of the project and the review of the plans.

Each of the government entities involved in the process of obtaining the various permits and licences may object to the application – namely, the City Hall of the corresponding jurisdiction, the Ministry of Tourism, the Ministry of the Environment, and the Ministry of Housing, Habitat and Buildings (MIVHED) – if, during the project evaluation process, any non-compliance with the applicable regulations is determined in each case.

Additionally, during the process of obtaining an environmental licence from the Ministry of the Environment, a public hearing is held during the environmental impact assessment review phase and before the Ministry issues the final licence or permit. At this hearing, interested third parties can present objections to the project’s approval. Opinions, proposals, and objections are typically submitted formally or in writing during the event so that they are recorded. The results of the public hearing are incorporated into the evaluation. The Ministry may require the project developer to modify its environmental management plans or, in extreme cases, justify the denial of the permit if the potential harm to the community and the ecosystem is unacceptable.

In order to avoid objections, it is highly recommended to seek counsel from an expert well-versed in the matter, who can help ensure regulatory compliance, maintain proper legal and documentary management, and conduct technical sessions and preliminary consultations with the involved institutions.

The conversion of hotels into establishments with a different designation and vice versa must undergo a land use evaluation process pursuant to the criteria established under Law No 368-22 on Land Use Planning. Such evaluation shall take into account the impact on the population, the risks, the economic needs of the surroundings, and the natural designation of the land.

Once the modification of the land zoning classification is approved, if necessary, the corresponding process to obtain the operating permits and licensing for hotels must be pursued.

Law No 318 on the Cultural Heritage of the Nation protects monumental heritage, including cultural buildings, constructions of historical or artistic interest, as well as statues, columns, pyramids, fountains, and plaques intended to remain in a public site for commemorative purposes. Such assets may not be destroyed, damaged, or altered without the authorisation of the corresponding authorities.

To that end, in cases where the construction is located within an area of historical or heritage value, it is necessary to obtain a no-objection certificate from the National Directorate of Monumental Heritage (Dirección Nacional de Patrimonio Monumental – DNPM) of the corresponding jurisdiction.

The Ministry of Tourism is the entity responsible for issuing operating licences for lodging establishments in the Dominican Republic. The requirements for licence approval vary depending on the type of establishment, location of operation, and the number of rooms.

In any event, for the purpose of obtaining the operating licence, legal, technical, and financial requirements must be met, such as:

• corporate documents of the company;
• tax clearance certificate issued by the General Directorate of Internal Revenue (DGII) stating that the company is current on its tax payments;

• a valid certificate issued by the Social Security Treasury (TSS) stating that the applicant is current on its social security obligations;
• a trade name registration certificate;
• identification documents and criminal record clearance certificates of the main partners and representatives;
• a document establishing the right to use the property where the establishment will operate;
• a general liability insurance policy;
• bank references; and
• a Land Use Certificate of No-Objection issued by the Directorate of Planning and Projects of the Ministry of Tourism (DPP).

Once these requirements are analysed, an inspection is conducted at the physical facilities where the hotel will operate, and after any observations are addressed, the licence is issued, which shall be valid for a period of one year, consecutively renewable.

The regulatory framework of the Dominican Republic establishes rigorous sustainability standards with which hotels must comply to obtain approval for an environmental licence or permit, such as the following:

• Mandatory sustainability criteria for land use are established through the evaluation of the ecological footprint.
• Rigorous standards are established for wastewater management and treatment through wastewater treatment plants that comply with the Environmental Standard on the Quality of Inland and Coastal Waters, strictly prohibiting untreated discharges into the subsoil or the sea.
• The maritime zone is protected, requiring strict adherence to the 60-metre maritime zone from the high-tide line to protect dune and mangrove ecosystems.

Law No 225-20 on Comprehensive Management and Co-processing of Solid Waste obligates commercial and hotel establishments to implement minimisation, source-separation, and responsible waste management plans, promoting a circular economy and penalising the use of single-use plastics in certain areas.

Certain international chains voluntarily adopt international sustainability certifications, such as LEED or EDGE, to validate their operations before global investors and guests.

Compliance with these sustainability standards not only prevents regulatory sanctions but also opens the door to competitive advantages, such as green financing. Multilateral institutions (such as IDB Invest or the IFC) offer substantially more favourable financing conditions (lower interest rates, longer grace periods) to hotel projects that hold LEED or EDGE certifications.       

General Labour Regime Applicable to Hotels

Hotels in the Dominican Republic are subject to the ordinary labour regime imposed by the Dominican Labour Code. Therefore, hotel employees are entitled to the same statutes applicable to other employees in the Dominican Republic, including rules on Christmas salary, working hours, mandated breaks, social security, termination, severance, and occupational hazards, among others.

Special Salary Rules for the Hotel Sector

In addition to the general application of the Dominican Labour Code, the hotel sector is subject to specific minimum salary rules issued by the CNS (National Salary Committee). Resolution No CNS-04-2025, issued on 26 May 2026, establishes the applicable minimum wage scale for workers in hotels, casinos, restaurants, bars, cafés, cafeterias, nightclubs and other gastronomic establishments.

Accordingly, wherever labour due diligence is performed, the parties should include verification of compliance with the sector’s minimum wage, as well as the salary structure/classification and social security contributions.

Change of Ownership or Transfer of the Establishment

Where a hotel transaction involves a change in ownership or control of the hotel establishment, the parties should determine as part of the pre-closing process whether the employment relationships with hotel employees will be terminated prior to completion or transferred to the purchaser through an employer substitution mechanism.

If the parties decide to terminate the employment relationships before closing, the employer must comply with the general provisions of the Dominican Labour Code regarding notice periods, severance payments, accrued employment rights, and any other benefits to which employees may be entitled as a result of their employment.

Alternatively, where the transaction contemplates the transfer of employees to the new owner, the Dominican Labour Code provides that the employment relationship continues uninterrupted with the new employer. In such circumstances, the new employer must recognise and preserve the employees’ existing terms and conditions of employment, including salary, length of service, accrued holiday entitlement, and all other rights acquired during their employment with the previous employer.

As an additional safeguard for employees, both the outgoing employer and the incoming employer remain jointly and severally liable for any labour-related obligations arising prior to the employer substitution, subject to the applicable statutory limitation periods.

For this reason, hotel transactions typically involve extensive labour due diligence covering matters such as employee headcount, employment contracts, length of service, salary levels, accrued holiday entitlements, Christmas salary obligations, social security compliance, occupational health and safety matters, trade union or collective bargaining arrangements, pending employment claims, and potential severance liabilities. Transaction documents also commonly include specific representations, warranties, and indemnity provisions designed to allocate responsibility for pre-closing and post-closing employment-related liabilities between the parties.