Rules for Apartment-Hotels and Tourist Inns

Legal basis and cited instruments

Executive Order No. 120 is the primary legal basis authorizing the Department to promulgate rules governing the operations of persons and establishments catering to tourists and to prescribe standards, accreditations, and licensing rules.
The rules were issued consistent with Presidential Decree Nos. 259 and 1463, to the extent they are not inconsistent with Executive Order No. 120.

Policy, intent, and implementation approach

The rules are designed to establish and enforce standards for registration, licensing, operation, and supervision of apartels and tourist inns.
The Department may adopt any suitable procedure when a specific procedure is not provided, so long as the procedure conforms to the purpose, intent, and spirit of the rules (Section 40).
The Department may enlist aid and support of other government agencies—civil or military—for implementation and enforcement (Section 41).

Core definitions and key terms

Apartment-Hotel (Apartel) means a building containing several independent furnished or semi-furnished apartments, regularly leased to tourists and travelers for dwelling on a more or less long-term basis, offering basic services similar to hotels (Section 1(a)).
Tourist Inn means a lodging establishment catering to transients that does not meet the minimum requirements of an economy hotel (Section 1(b)).
Tenant means any tourist or traveler, including members of the tenant’s family and domestic helpers, who is registered as a paying occupant in an apartment-hotel (Section 1(c)).
Hotel means any lodging place as defined and classified in the Hotel Code of 1987 (Section 1(d)).
Department means the Department of Tourism (Section 1(e)).
Secretary means the Secretary of Tourism (Section 1(f)).

Basic requirements: Apartels

For registration and licensing, an apartel must meet minimum facilities and operational standards (Section 2).
The apartel must have at least TWENTY FIVE (25) lettable apartments (Section 2(a)).
Each apartment must include living and dining areas, kitchen, and bedroom with attached toilet and bath (Section 2(b)).
The living area must have essential and reasonably comfortable furniture (Section 2(c)).
The kitchen must be spacious, clean, hygienic, adequately equipped, and must include facilities for storage and refrigeration of foods, disposal of garbage, and cleaning of dishes and cooking utensils (Section 2(d)).
The dining area must be spacious and provided with a dining table and chairs with essential dining facilities (e.g., plates, spoons and forks, drinking glasses) (Section 2(e)).
Toilet and bathroom must be always clean, with adequate sanitation and running water (Section 2(f)).
Bedrooms must be spacious, provided with a comfortable bed, and must include a closet and a mirror (Section 2(g)).
The apartel must have a sufficient number of good, clean linen, which must be changed regularly (Section 2(h)).
The apartment must be sufficiently ventilated, and if possible each bedroom must be air-conditioned or provided with an electric fan; the air-conditioning/fan requirement does not apply in high altitude areas (Section 2(i)).
Lighting arrangements and fixtures in all rooms must be adequate (Section 2(j)).
A telephone or a call bell button must be provided (Section 2(k)).
An elevator must be provided for a building of more than three (3) storeys whenever possible (Section 2(l)).
Staff must be trained, experienced, courteous and efficient, and must be provided with smart and clean uniforms (Section 2(m)).
An emergency clinic stocked with emergency medicines and drugs must be provided to service employees and guests (Section 2(n)); an apartel with more than 100 apartments must secure regular services of a house physician.
An apartel must provide fire-fighting facilities in accordance with the Fire Code of the Philippines (Section 2(o)).
The apartel must have a reasonably furnished lounge commensurate with the size of the apartel; the reception counter must be attended by trained staff and must be provided with a telephone (Section 2(p)).
The apartel must provide adequate security on a 24-hour basis on all entrances and exits (Section 2(q)).

Lease rules and tenant rights

Before receiving, harboring, or accepting any tenant, the apartel must require a written Contract of Lease for apartment use and occupancy (Section 3).
The written contract must state a length of occupancy that is not less than ONE-HALF (1/2) MONTH (Section 3).
The agreed rental cannot be increased during the effectivity of the lease contract (Section 4).
Unless otherwise provided in the lease contract, water, electric, telephone, gas, and other services supplied to the apartment are for the account of the tenant (Section 5(a)).
A flat rate is charged to tenants staying for less than one (1) month, while tenants staying for a month or more are charged based on monthly consumption (Section 5(a)).
During the effectivity of the Contract of Lease, the tenant is entitled to peaceful and uninterrupted possession of the apartment and security for the tenant’s person and personal belongings entrusted to the apartel (Section 6).
Tenants must strictly comply with the Contract of Lease and with reasonable house rules and regulations issued by the apartel and approved by the Department; these rules must form part of the Contract of Lease (Section 7).

Rights and duties of apartels

Apartel rights are limited to enforcing the Contract of Lease, independently of the rights and obligations of the lessor under the Civil Code (Section 8(a)).
An apartel may eject a tenant for non-payment of rental and/or repeated violations of (i) the Department’s Rules and/or (ii) the Lease Contract and/or (iii) house rules, by preventing entry into the apartment, preventing use of apartel facilities, and refusing to render services (Section 8(b)).
Upon prior notice to the tenant concerned, the apartel may appropriate personal belongings left by tenants as payment for rental arrears and/or for loss for damages suffered by the apartel, provided a proper inventory is made in the presence of local police authorities (Section 8(c)).
The apartel must ensure tenants have good, peaceful, and comfortable lodging during their stay (Section 8(d)).

House rules approval and integration

An apartel must prescribe reasonable house rules and regulations governing use of the apartment and other facilities (Section 9(a)).
House rules and amendments become effective only upon approval by the Department (Section 9(a)).

Basic requirements: Tourist inns

For registration and licensing, a tourist inn must meet minimum operational and facility standards (Section 10).
A tourist inn (except those already existing and licensed by the Department) must be located along principal highways or transportation routes and must be open to business on a 24-hour basis (Section 10(a)).
All bedrooms must have attached toilet and bath equipped with 24-hour running water (Section 10(b)).
Bedrooms must have adequate natural and artificial light and ventilation, and must be furnished with comfortable beds and quality furniture including mirror, writing table, chair, closet, dresser per room (Section 10(b)).
Walls must be painted, wall papered, or architecturally designed, and must be clean and pleasing to the eye; windows must have clean and appropriate draperies; floors must be of good flooring materials (Section 10(b)).
Single bedrooms must have a floor area of not less than nine (9) square meters; twin rooms or double rooms must have a floor area of not less than sixteen (16) square meters (Section 10(b)).
Each bedroom must be provided with vacuum jugs or thermos flasks with drinking water with glasses (Section 10(b)).
The inn must provide adequate supply of good, clean linen, blankets, and towels, which must be changed regularly in each occupied room (Section 10(b)).
The inn must have adequate parking space proportionate to the number of lettable rooms and other public facilities (Section 10(c)).
The inn must have a reception and information counter attended by qualified, trained and experienced staff, and must provide a lobby and well-appointed lounge for seating/reading (Section 10(c)).
Adequate telephone facilities for guest use must be provided at least in public areas, including availability of services for long distance calls or overseas (Section 10(c)).
The inn must have radios and/or TV sets for guest use upon request (Section 10(c)).
The inn must provide a well-equipped, well-furnished, and well-maintained dining room/restaurant for guests and the public, with a kitchen/pantry/cold storage designed and organized for efficient and hygienic operation; washing of cooking utensils and similar items must be done sanitarily (Section 10(c)).
The inn must provide adequate security to all guests and their belongings (Section 10(c)).
Inns with more than fifty (50) lettable rooms must have emergency power facilities to light common areas and emergency exits during brown-outs or power failure (Section 10(c)).
The inn must provide adequate fire-fighting facilities as required and specified by the local fire department in the locality and/or the Fire Code of the Philippines (Section 10(c)).

Mandatory registration, licensing, and applications

No person, natural or juridical, may keep, manage, or operate an apartel or tourist inn, or engage in such business, without first securing from the Department a certificate of registration and a valid license to operate (Section 11(a)).
Any owner or occupant who allows premises to be used as an apartel or tourist inn without the required certificate of registration and license is guilty of an offense under these rules (Section 11(a)).
The Department accepts applications by persons, partnerships, corporations, or other entities who desire to establish, maintain, and/or operate an apartel or tourist inn (Section 12(a)).
Applications for registration and license must be accomplished in duplicate and filed with the Department using the prescribed application form (Section 12(a)).

Required documents for initial registration

Applications must be accompanied by two (2) copies of supporting documents unless indicated otherwise in the form (Section 13(a)).
For corporations or partnerships, submit certified true copies of Articles of Incorporation, by-laws, or Articles of Partnership and amendments registered with the Securities and Exchange Commission, plus a Business Name Certificate; for single proprietorship, submit Business Name Certificate and amendments if any (Section 13(a)).
Submit the applicant’s latest income tax return and audited financial statements (profit and loss statements and balance sheets) for the preceding year of operation; this is not applicable for new apartels and tourist inns (Section 13(b)).
Submit a list of names of all officials and employees with their designations, nationalities, and home address, and for alien personnel, provide a valid visa from the Commission on Immigration and Deportation and the proper permit from the Department of Labor and Employment (Section 13(c)).
Provide Annual General Liability Insurance for guests in the amounts of P 10,000.00 for an Apartel and P 10,000.00 for a Tourist Inn (Section 13(d)).
Submit a schedule of current room rates (Section 13(e)).
For apartels/tourist inns constructed or established after the effectivity of Presidential Decree No. 381 on January 24, 1974, submit proof of prior approval from the Philippine Tourism Authority or the Department as the case may be (Section 13(g)).

Inspection process and license validity

After filing the application with the Licensing and Accreditation Division, the Department creates an inspection committee composed of two (2) members from the Department (Section 14).
Upon receipt of a mission order, the inspection committee conducts an ocular inspection of the apartel/tourist inn and immediate premises to determine compliance with Department standards (Section 15).
The certificate of registration is applied for only once at the start of operation and is re-applied for only if the apartel/tourist inn has ceased operations for at least six (6) months or if its license has been revoked for some reason; the registration fee is paid only once, unless a reapplication is filed under these circumstances (Section 16(a)).
The license to operate is valid for one (1) year or until 30th of September of the year of issuance of license, whichever applies, unless sooner revoked by the Department (Section 16(b)).

Fees and renewal deadlines

Registration and license fees are based on the number of lettable rooms/apartments and are collected from applicants who comply with requirements (Section 17).
Tourist Inn fees: With 50 or less lettable rooms—Registration Fee P 500.00; License Fee P 300.00; With 51 units but not exceeding 100—Registration Fee P 750.00; License Fee P 500.00; With more than 100 units—Registration Fee P 1,000.00; License Fee P 700.00 (Section 17(a)).
Apartel fees: With 75 or less apartments—Registration Fee P 350.00; License Fee P 180.00; With more than 100 to 125 units—Registration Fee P 1,350.00; License Fee P 180.00 (Section 17(a)).
License renewal applications must be filed starting September 1 up to September 30 of the year of expiry (Section 18(a)).
A surcharge of fifty percent (50%) of the license fees due applies to applicants who fail to file renewal on time (Section 18(a)).
The delay may be excused if failure to file on time was due to fraud, accident or excusable neglect (Section 18(a)).
Failure to file renewal without just cause is a sufficient ground for cancellation of the license (Section 18(a)).
Failure to submit all requirements within sixty (60) days from the date of filing is a ground for fine and/or non-renewal of the license (Section 18(a)).
Renewal applications must be supported by: (1) a copy of amended Articles of Incorporation or Articles of Partnership and by-laws, if applicable; (2) list and information sheets of additional personnel and any change in manpower complement; (3) latest Income Tax Return and audited financial statements; and (4) proof of renewal of General Liability Insurance (Section 19(a)).

Fines, suspension/cancellation, and grounds

The Department may impose fine, cancel the license, and/or order non-renewal when specific grounds exist (Section 20).
Grounds include: making false declarations or statements, using such declarations/documents, committing fraud, or committing misrepresentation to obtain issuance, grant, or renewal of registration or license (Section 20(a)).
Grounds include failure to comply with or contravene conditions set forth in the license (Section 20(b)).
Grounds include failure to meet operational standards for apartels/tourist inns as prescribed by these rules (Section 20(c)).
Grounds include serious physical injury or loss of life of any guest due to fault or negligence of any official or employee of the apartel/tourist inn (Section 20(d)).
Grounds include allowing or permitting the apartel/tourist inn, including facilities, to be used for illegal, immoral, or illicit activities (Section 20(e)).
Grounds include violation of or non-compliance with any provision of these rules or with Department promulgated orders, decisions, and circulars (Section 20(f)).

Transfer, display, registry, and ID cards

No apartel/tourist inn owner or operator may transfer or alienate the license in any manner without prior approval of the Department (Section 21(a)).
Any transfer of shares in the apartel/tourist inn must be reported to the Department within ten (10) working days (Section 22(a)).
The certificate of registration and license must be displayed in a conspicuous place in the apartel/tourist inn (Section 23(a)).
All apartels/tourist inns must keep a Registry Book; guests must register in the Registry Book: (a) full name; (b) address; and (c) residence certificate or driver’s license or passport indicating the number, date, and place of issue (Section 24(a)).
The Department issues Identification Cards to employees upon request subject to payment of a nominal fee, provided employees are included in the list of personnel of the concerned establishment (Section 25(a)).
When staff cease to be managers/officers or members of the staff, they must immediately surrender their ID card to the Department (Section 26(a)).

Periodic inspections and remediation periods

The Department assigns two (2) inspectors to conduct periodic inspection of apartels/tourist inns and immediate premises to determine compliance with Department standards and with these rules and circulars (Section 27(a)).
Inspections must be covered by mission orders stating scope of authority and other necessary matters (Section 27(a)).
Inspections must be conducted at a reasonable time of day with due regard to guests’ right to privacy (Section 28(a)).
Inspectors must have access to apartel/tourist inn records and premises and the right to copy records and question employees to determine compliance (Section 29(a)).
When defects or deficiencies are found, the Department must direct the operator/manager to rectify or complete them within one (1) week from notice (Section 30(a)).
For just cause, the Department may extend the remedy period but in no case may it exceed two (2) months (Section 31(a)).
Failure to remedy allows the Department to impose a fine of Fifty Pesos (P50.00) for every delay, but the fine cannot exceed One Thousand Pesos (P1,000.00) (Section 32(a)).
If the maximum fine is reached and continuous failure continues, the Department may revoke or suspend the certificate of registration and license for a period justified under the circumstances (Section 32(a)).

Keeper liability and staff discipline standards

Apartel/tourist inn keepers/managers and assistants are administratively liable for acts or omissions of staff committed against any guest, without prejudice to existing laws (Section 33(a)).
Keepers/managers may be exempt from administrative liability if they establish they exercised the diligence of a good father of the family in supervising the erring employees, or where acts/omissions are beyond their control due to fortuitous event or force majeure (Section 33(a)).
Acts committed by the manager/operator or any staff member that work against the interest of the tourism industry are sufficient grounds for disciplinary and/or administrative and legal action (Section 34(a)).

Code of ethics and conduct

Apartel/tourist inn owners/keepers/managers and/or associations must draft their respective Code of Ethics and/or Conduct with the assistance of the Department (Section 35(a)).
The Code must govern conduct among owners/keepers/managers/associations and govern staff conduct toward one another and toward guests/tenants (Section 35(a)).
The Code must include administrative penalties for violations such as fine, suspension, or dismissal, and suspension or revocation of the establishment’s license, and other related sanctions (Section 35(a)).
Once promulgated by the Department, the Code becomes part of these rules (Section 35(a)).
In case of conflict between these rules and the Code, these rules prevail (Section 35(a)).

Quasi-judicial powers and complaint resolution

The Department exercises quasi-judicial powers in resolving cases filed against apartels/tourist inns and/or their employees in accordance with the Department’s rules and procedures governing complaints (Section 36(a)).

Confidentiality and mandatory availability of rules

Information and documents received by or filed with the Department in pursuance of these rules must be treated as confidential and must not be divulged to any private party without the consent of the party concerned or upon the order of the Secretary (Section 37(a)).
Department officials or employees who violate confidentiality provisions commit an offense under these rules (Section 37(a)).
Each apartel/tourist inn must keep a copy of these rules available for inspection whenever any guest or employee requests to be shown a copy (Section 42(a)).

Criminal penalties, administrative fines, and liability allocation

A licensed operator/holder who violates these rules or causes another to violate them faces, upon conviction by a competent court, imprisonment of not less than six (6) months nor more than two (2) years or a fine of not less than TWO THOUSAND PESOS (P2,000.00) nor more than TEN THOUSAND PESOS (P10,000.00), or both, at the discretion of the court (Section 38(a)).
Upon conviction of a licensed operator/holder under Section 38(a), the Department-issued license is deemed automatically withdrawn and revoked and the surety bond is forfeited in favor of the Department (Section 38(a)).
A non-holder of authority who violates these rules or Department circulars faces, upon conviction by a competent court, imprisonment of not less than one (1) year nor more than four (4) years or a fine of not less than FOUR THOUSAND PESOS (P4,000.00) nor more than TWENTY THOUSAND PESOS (P20,000.00), or both, at the discretion of the court (Section 38(b)).
If the offender is a corporation, partnership, firm, or association, penalties are imposed on the officer or officers responsible for the violation; if the responsible officer is an alien, the officer may also be subject to deportation (Section 38(c)).
Without prejudice to penal sanctions, the Department may impose an administrative fine of not less than ONE THOUSAND PESOS (P1,000.00) nor more than TEN THOUSAND PESOS (P10,000.00) against any person who violates or causes another to violate any rule/circular, or suspend or revoke the license of any such person subject to the Department’s regulatory jurisdiction (Section 39(a)).

Effectivity, separability, and repeal

These rules take effect fifteen (15) days after publication in the Official Gazette or a national newspaper of general circulation (Section 43(a)).
If any provision is declared invalid, the validity of all other provisions is not affected (Section 44(a)).
All existing rules and regulations or circulars issued by the defunct Board of Travel and Tourist Industry or previously issued by the Department and other government agencies or entities on apartment-hotel and tourist inn operations, and all inconsistent municipal or city ordinances (or parts) are repealed or modified accordingly (Section 45(a)).