A hotel or guest house in Lahore is only as sellable as its paperwork: confirm DTS registration and licence, Hotel Eye compliance, LDA commercial status, fire safety NOC and a clean title before paying anything.
Lahore's registered hotels and guest houses cluster in Gulberg, Johar Town, the Railway Station area, Mall Road and around the Cantonment and airport. When you buy one, you are buying a building and a regulated business at once, so the licences matter as much as the land.
Building or business: know what is for sale
A hotel sale in Lahore usually takes one of two forms. Either you buy the property only (land and building), or you buy a running business with staff, bookings, furniture and its registration history.
The difference matters legally. Under the Hotels and Restaurants Act 1976, an owner must register and obtain a licence before operating, and that licence runs for one year and is renewed annually. In Punjab, the Department of Tourist Services handles registration, licensing and hotel classification under the Punjab Hotels & Restaurants Act 1976, amended 2020, and Rules 2021.
So ask early how the licence will move to you, and budget time for fresh registration if it cannot.
Where hotels and guest houses are found
The DTS register of hotels in Lahore shows the pattern. Gulberg (II, III and V) leads by a wide margin, followed by Johar Town, where many sit near Shaukat Khanum Hospital, and the Railway Station belt along McLeod Road, Abbott Road and Bund Road.
Smaller groups appear on Mall Road, Anarkali, Davis Road, Faisal Town, the Cantonment and the airport area, with a few in DHA, Model Town, Bahria Town, New Garden Town, Lawrence Road and near Data Darbar. The register lists hotels by star category; the large majority are one-star, and only a handful are four- or five-star.
| Location type | Areas from the DTS register | Demand it relies on |
|---|---|---|
| Business and shopping | Gulberg, Mall Road, Davis Road | Corporate visitors, shoppers |
| Hospital-adjacent | Johar Town near Shaukat Khanum | Patients' families, longer stays |
| Transit | Railway Station, Bund Road, airport area | Travellers, short stays |
| Old city and shrines | Anarkali, Data Darbar, Circular Road | Pilgrims, budget tourists |
What drives the asking price
Houseplot's indicative price data (Oct 2026) covers houses and plots, not hotels, so we do not quote hotel prices. A hotel's value depends on things a house price table cannot capture.
Key factors are the number of rooms, star category, whether the land has commercial status, parking, the condition of lifts and generators, and the length of trading history. A buyer paying for "goodwill" should see tax returns and PRA filings that back up the revenue claimed. If the seller cannot show them, value the deal as property only.
Compliance you inherit
| Requirement | Authority | What to check |
|---|---|---|
| Registration and annual licence | Department of Tourist Services | Current licence, star category, renewal date |
| Guest data entry on Hotel Eye | Punjab Home Department | Active account at hoteleye.punjab.gov.pk |
| Guest reporting | Police, under the Punjab Information of Temporary Residents Act 2015 | Records kept, no past cases |
| Commercial land use | LDA or society | Commercialisation approval and fee receipts |
| Fire safety | Civil Defence, Rescue 1122 | NOC, exits, alarms, equipment |
| Food service, if any | PRA and Punjab Food Authority | PRA number, PFA licence |
Hotel Eye is now mandatory beyond hotels. In May 2025 the Home Department ordered all private guest houses to register by June 15, 2025, and guests booked through online booking platforms must also be entered on arrival.
Under the 2015 Act, hotels must report guests within 24 hours of check-in. Breaches can mean up to six months' imprisonment, a fine of Rs10,000 to Rs100,000, or both.
Fire safety is under closer watch. The LDA will not issue completion certificates to commercial buildings without a Civil Defence NOC, and Punjab created a Fire Inspectorate Unit in Rescue 1122 in January 2026 with orders to seal violators.
Due diligence, step by step
- Verify title through the Punjab Land Records Authority or the society, and match the seller's CNIC to the record.
- Get the LDA or society approval for commercial use and the approved building plan; compare the floors built with the floors approved.
- Collect the DTS licence, star classification letter and renewal history.
- Confirm Hotel Eye registration and ask whether any notices have been received.
- Inspect the fire NOC, exits, alarms and equipment on site.
- Review PRA, income tax and utility records for at least the last few years.
- Have a lawyer draft the sale agreement, listing furniture, equipment and any staff liabilities.
Red flags
- A "guest house" running in a house on a residential street with no commercial approval.
- No Hotel Eye account, or a seller who calls it optional.
- Extra floors beyond the approved plan.
- Revenue claims with no tax filings behind them.
- In February 2026 the LDA sealed 102 properties for unpaid commercialisation fees and penalties; ask for every fee receipt.
Sources
- Registered Hotels — Department of Tourist Services Punjab — locations and star categories of Lahore hotels
- About Us — Department of Tourist Services Punjab — registration, licensing, classification; 1976 Act and 2021 Rules
- Food, beverages, restaurant and hotel registration law — Masood & Masood — registration before operating, one-year licence
- Punjab mandates Hotel Eye registration for guest houses — APP (May 2025) — deadline, portal, authority
- Punjab makes guest tracking mandatory by June 15 — ProPakistani (May 2025) — online booking platforms covered
- Law on information of temporary residences — SAHSOL, LUMS — 24-hour reporting, penalties
- LDA makes fire safety NOC mandatory — Bloom Pakistan (Jan 2026) — Civil Defence NOC
- Punjab to set up fire inspectorate unit — Aaj News (Jan 2026) — Rescue 1122 inspectorate
- LDA seals 102 illegal commercial properties — ProPakistani (Feb 2026) — commercialisation enforcement