FRANK Legal & Tax | View firm profile
On 30 August 2023, the Royal Gazette issued the ministerial regulations as an announcement regarding the amendment in the definition of the hotel, which led to changes in the requirements for owners who wish to operate hotels.
According to the regulation amendment, this alters the criteria for operating a hotel. A significant modification has been made to Section 4 of the Hotel Act B.E.2547(2004), which sets forth the definition of “Hotel”. Thus, the amendment has identified a new exception where such circumstances would not be considered a hotel. It is stated that, in the case where the residential premises contain a number of not exceeding eight rooms on all floors in total, whether in single or several buildings and with a total service capacity of not more than 30 guests with the purpose to operate as a temporary accommodation for travelers or the other person, this would not be considered as a hotel.
The main goal of this ministerial regulation is to support local businesses that wish to generate income from their residential properties. Many of these local residences have distinctive uniqueness and attractive architecture that draw in tourists but often fall short of the specific requirements necessary to obtain a hotel license and operate as such. Hence, this amendment simplifies the hotel license requirements, which are typically too stringent for many residential premises to meet. This, in turn, enables property owners to continue profiting from their residences without the need for a hotel license.
While property owners may be exempt from obtaining a hotel license in certain cases, they are still required to pursue Non-Hotel registration to operate their business.