Management of Sharia Compliant Hotel in Malaysia: The Experiences of Waqf Hotels

Sharia compliant hotels are an emerging halal sector in Malaysia. A constant increase in Muslim tourists has led to the higher demand for such hotel. As the potential grows, various interested parties have taken the opportunity to venture into the industry, including many State Religious Councils. In this aspect, the councils have used waqf asset (religious endowment asset)—wealth belong to Muslims entrusted to the councils—to build hotel premises and facilities. As the hotels are built using religious fund, the activities must also fully conform to Islamic rules. This chapter investigates the criteria of Sharia compliant hotels and the extent to which waqf hotels have complied with the rule and regulation of Sharia. Based on the research findings, which incorporate four waqf hotels in Malaysia, efforts to manage the hotels based on Sharia have been started. Although in many aspects the Sharia criteria have been satisfactorily met, there are still many rooms for further improvement.