How to apply for a business license for Hotels with 199 rooms or less in Las Vegas
When you talk about Las Vegas, the images that come to the mind are that of casinos and entertainment. The city is a tourism hotspot that enjoys an occupancy rate of almost 83.8% throughout the year. The leisure and hospitality industry drives the economy of Las Vegas and Southern Nevada. Las Vegas is just the perfect destination for businesses planning to establish in the hotel industry. If you are planning to start a hotel with 199 rooms or less, you will require a hotel business license in Las Vegas. This is a guide that will provide you with an insight into the hotel industry in Las Vegas and how you can be an integral part of this growing economy.
An Introduction to Business Licenses for Hotels (199 rooms or less) in Las Vegas
A hotel with 199 rooms or less will not only ensure tourists are able to get proper accommodation but the cost of setting up the business will also be less. The importance of a hotel business license in Las Vegas is the key to making the hotel operational. Hotels have long played a key role in tourism destinations. Today, hotels are considered to be one of the rapidly growing sectors within the tourism industry. This is because wherever tourists visit they will require accommodation and Las Vegas is a tourism hotspot. The city saw 42.52 million visitors in 2019 and all these visitors have one need in common – accommodation!
Growth of the Las Vegas Hotel Industry
Las Vegas, one of the top tourist destinations in the USA is considered by many to be the casino capital of the world. Tourism, conventions, and gaming are considered to be the key drivers of the economy of the City of Las Vegas. The economy has grown in leaps and bounds and has helped many small, medium, and large businesses to reach sustainable growth. There are several areas for setting up your new business including the hospitality sector and all you will require is a Las Vegas business license to start with.
The hospitality industry has come a long way and has witnessed positive growth since 2009. This has opened the doors and created the platform for small and medium businesses to flourish in the form of motels and hotels. There has been a steady increase in businesses applying for a Las Vegas business license especially hotels with 199 rooms or less. In 2009, the citywide occupancy was 81.5% and in 2019, the occupancy rate was 88.9% according to Las Vegas Convention and Visitors Authority (LVCVA). Forecasters believe that the demand for Las Vegas motels and hotels will continue to be driven by the tourism and leisure segment with occupancy levels remaining the highest during weekends. A report by Las Vegas Convention and Visitors Authority (LVCVA) revealed that weekend occupancy of hotels in 2019 was 94.2% as compared to mid-week occupancy of 86.5%.
Let us look at some interesting statistics concerning the hotel industry in Las Vegas:
- The visitor volume in 1970 was 6,787,650 with room inventory being 25,430. In the year 2000, visitor volume was 35,849,691 with room inventory being 124,270. In 2019, the visitor volume was 42,523,700 with room inventory at 150,259.
- The U.S. national average hotel occupancy is 66.2% while that of Las Vegas city-wide is 88.2% and Las Vegas strip occupancy is 89.5%.
- The total number of hotel & motel rooms available in Las Vegas city is 147,238 with the average night room rate being $129.
- There are more than 55,856 entities conducting their business with a Las Vegas business license. A majority of these businesses are hotels and motels.
- Tourists or visitors to Las Vegas contributed nearly $2.3 billion through various taxes.
- Visitor spending was an average of $135 for rooms per visit and the total spending on rooms annually was $5,693,927,439.
Hotels may also contain restaurants, conference rooms & personal service shops
A hotel business license in Las Vegas is necessary to conduct business at this tourist destination. Hotels in this city are not only used for accommodation but provide several other services including restaurants, conference rooms & personal service shops. In fact, the city of Vegas is considered by many as the top meeting and convention destination in the nation. There is 11,296,470 square feet of meeting and convention space in Clark County, one of which has three-fourths of its space in Las Vegas. If you have been thinking of starting a hotel with 199 rooms or less then offering convention space can be a fruitful decision.
Every entity in the hospitality Vegas industry requires a hotel business license in Las Vegas and there are a multitude of services being provided by hotels and motels. Some of the common services offered by hotel establishments include:
- Luxury guest rooms and suites
- Multiple meeting rooms
- Convention Facilities
- Multiple specialty restaurants
- Full-service business center
- Nightclubs, bars and lounges
- Day spa with salon as well as workout options
- Small to mid-sized in-house shops
- Concierge service
The type of hotel you are planning to establish and the services you are aiming to provide are the two most important criterions for defining the type of Las Vegas business license required.
Are you ready to register your business in Nevada?
Las Vegas Hotel (199 or less) License Requirements
Las Vegas is one of the top tourist destinations in the USA and the world. It is the right destination to start a hotel with 199 rooms or less as the currently available 149,422 rooms may seem less during weekends. You will have to obtain a hotel business license in Las Vegas in order to offer tourist lodging, restaurant, and other lodging related services. There are specific requirements that you will need to consider prior to filing an application for a hotel business license. The requirements are:
Business Location Limit within Las Vegas
One of the primary requirements for a hotel business license in Las Vegas is the location of the business structure or hotel. Most of the top hotels are situated on the Las Vegas Strip, which is a part of South Las Vegas Boulevard although newer properties are situated in different areas of the Las Vegas Boulevard South. In order to apply for a hotel business license, you will have to confirm that your proposed location is within the city limits. You will also have to ensure zoning permits for a new hotel have been approved by the office of the Clark County Commissioner. You can read the Zoning Code also known as the Unified Development Code that provides information on zoning, signage, urban design, subdivision regulations, architectural and landscaping standards.
Provide proof of compliance with the Nevada Secretary of State
In order to obtain a Las Vegas business license for your new hotel, you will be required to submit proof of compliance with the office of the Nevada Secretary of State. Your hotel needs to be compliant with several aspects of transient lodging establishments pursuant to NV Rev Stat § 447 (2017) and Nevada Administrative Code NAC-444. The regulations that your hotel needs to be compliant with will vary from sanitation to general standards for construction, electrical requirements, floor area and ceiling height of rooms, disposal of waste, facilities for bathing, ventilation of rooms, and access for inspection of hotels among others.
Apply for and obtain a Health Permit from the Southern Nevada Health District
Las Vegas requires every hotel, motel, and food establishment including restaurants within hotel premises to apply for and obtain a Health Permit. A copy of this health permit has to be attached with the application for your hotel business license in Las Vegas. The health permit is issued by the Southern Nevada Health District, post inspection of the facility by an agent of the Health Authority. You can check the public accommodation regulations to get an insight into all that is required by hotels to get the permit.
Apply for a License Online
If you are a new business, then you can apply for your Las Vegas business license through the online portal for the City of Las Vegas. You will have to apply at least 30 days prior to commencing your lodging business.
Complete a wastewater profile for non-residential establishments
In order to apply for and obtain a Las Vegas business license for hotels with 199 rooms or less, you will have to file an Application For Class II Wastewater Contribution Permit with the City of Las Vegas Environmental Division. This permit helps in creating a wastewater profile for non-residential establishments and provides information on the preparedness of hotels related to accidental spills of any liquids or chemicals, treatments used for removing pollutants, and types of waste produced and disposal methods used by the establishment in question.
If you are planning to establish a hotel in Las Vegas with 199 rooms or less, you will have to obtain a hotel business license in Las Vegas. You will also have to apply for other licenses and permits depending on the services and facilities you are planning to provide. Apart from this, a hotel will require different types of on-site inspections. The fee for hotel business license and other licenses and permits will be different. There will also be a fee for inspections and the total amount of fees can vary from $25 to $400 or more. The fee for a hotel with 5-8 rooms is $25 and that of 9-199 rooms is $25 plus $3 per room. There is an additional $45 non-refundable application fee in Clark County.
Business license applications are sent to the Planning Department and Fire Department for review and inspection, if applicable
A hotel, motel or transient lodging in Las Vegas has to comply with the codes of the Fire Department and Planning Department. This is necessary for obtaining a hotel business license in Las Vegas. Whether a business is compliant or not will be decided through various inspections carried out by the Fire Department as well as the Planning Department upon receipt of your application. The Department of Building Fire Prevention Bureau also issues specific permits. You will have to get such a permit if it is applicable prior to submitting your business license applications. One of the most common permits for hotels with 199 rooms or less is the Fire Extinguishing Systems Permit.
Similarly, the Planning Department is responsible for ensuring code compliance by hotels. They carry out inspections for existing and new buildings. A Las Vegas business license will be issued only if a hotel has the required permits and is in compliance with all building and planning codes.
It is important to note that compliance with the codes and regulations will help you to obtain your Las Vegas business license with ease.