A SHARIA HOTEL CHAIN: STORY OF ARABIA HOSPITALITY GROUP

The story of the Arabia Hospitality Group centers on the Grand Arabia Hotel in Banda Aceh, Indonesia. Established in 2017 and later acquired by the Arabia Hospitality Group in 2021, it’s strategically located near the Baiturrahman Grand Mosque. The group’s focus is on luxurious hotels adhering to Sharia law, with over 7 locations across Sumatra. They offer upscale accommodation targeting medium to upper segments, pricing rooms from 800,000 to 4,900,000 rupiah.

Competition mainly arises from large hotel brands like Accor, Four Seasons, and local brands, though the strict adherence to Sharia law in the region discourages some major brands from entering the Banda Aceh market.

However, the hotel faces human resource challenges, notably high turnover due to various factors. Issues range from infrastructure discomfort (power outages, poor internet) to employees’ reluctance to adhere to Sharia law’s standards, causing disciplinary problems.

Potential solutions include providing comfortable accommodations for employees, addressing infrastructure issues, conducting more informative sessions about the importance of Sharia law compliance, and offering computer literacy training.

In conclusion, while the Arabia Hospitality Group presents a unique approach catering to Sharia law conformity, addressing employee needs and reinforcing the significance of Sharia law adherence within the company culture are vital for sustained success in this niche market.