Hotel development requirements in Albania

Hotel development in Albania continues to attract strong interest, especially in coastal zones, heritage cities, and tourism corridors with growing demand. But building a hotel is not like building a standard residential block. It requires a different set of permits, design standards, and legal procedures. From zoning classification to hospitality-specific regulations, developers must meet strict criteria to receive full approval. Failing to follow the correct process can delay the project, block the usage permit, or make the property ineligible for registration as a commercial unit.

Understanding these requirements early helps you avoid missteps and position your project for long-term success.

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Land classification and zoning come first

Before preparing a hotel design, developers must confirm that the land is legally classified for tourism or commercial use. Many attractive plots, especially near the coast, fall under residential or agricultural zoning. If the land is not in a tourism development zone, you cannot obtain a hotel construction permit without first requesting a zoning change.

The zoning plan must allow for:

  • Hospitality use (hotel, boutique hotel, resort, or serviced apartments)

  • The necessary building volume and floor-area ratio

  • Access to public infrastructure, roads, and utilities

  • Compliance with environmental and coastal buffer zones (if applicable)

If the land requires a change of use, the process can take several months and must be approved by the municipality or, in some cases, national planning authorities.

Hotels must follow hospitality-specific design standards

Unlike standard apartments or villas, hotels must meet regulations tailored to the tourism sector. These include requirements for fire safety, accessibility, staff areas, guest circulation, and technical infrastructure.

Key factors that must be included in the project plan:

  • Minimum number of rooms depending on category (often 10+ for basic hotels)

  • Lobby, reception, and service areas

  • Kitchens, restaurants, or common use areas for certain classifications

  • Adequate parking based on room count

  • Mechanical systems and backup utilities

  • Compliance with national fire protection and emergency exit standards

All of these elements must be reflected in the architectural project submitted for the building permit. Projects that fail to meet hospitality standards may be approved only as multi-unit buildings, not registered hotels.

Star rating classification happens after construction

The building permit and initial approvals do not grant a hotel classification. Once construction is complete and the usage permit is issued, the operator must apply separately for a tourism license and hotel classification through the Ministry of Tourism or the National Tourism Agency.

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This process involves:

  • Submitting proof of completion and usage certification

  • Documenting all physical standards and services offered

  • Undergoing an on-site inspection for star rating

  • Registering the hotel in the national tourism register

Hotels must meet specific standards for each star category, including room sizes, amenities, reception hours, staff training, and hygiene protocols. These standards are periodically updated, so the design should aim for a category that is both achievable and sustainable long-term.

Infrastructure and road access must be addressed early

A common mistake is to design a hotel without confirming whether public infrastructure can support it. If your project is in a growing area or on the edge of urban zones, you may be required to extend water, sewage, or electricity connections. Road upgrades, sidewalk creation, or stormwater drainage may also be requested by the municipality before approving the building permit or usage certificate.

These costs must be included in your project planning. In some cases, the developer is asked to fund or execute the infrastructure works directly, especially in tourism-focused municipalities that prioritize fast development.

Legal use depends on proper registration

Hotels must be registered not only as physical properties but also as licensed tourism businesses. Without the correct classification and license, the building cannot legally operate as a hotel. This blocks access to tourism incentives, international bookings, or partnerships with travel platforms. It may also cause issues with tax registration and utility billing, which differ between commercial and residential categories.

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