One of Hong Kong 's hospitality success stories, Shama serviced apartments, today unveiled their new senior management team and outlined ambitious expansion plan to expand fivefold in the next three years. Founded in 1996 Shama are now backed by majority shareholders Morgan Stanley Real Estate, who came onboard in 2007, as well as Gateway Capital.

Shama currently boast a portfolio of eight properties, seven of which are located in Hong Kong. In 2008 an additional Hong Kong property is scheduled to open in Fortress Hill, along with a second Shanghai location and new offerings in Beijing and Dalian. By the end of the year they expect to grow the portfolio to 1200 room, the first step in an expansion plan targeting 14 cities across all Asian gateway cities.

Highlighting one of the biggest challenges in growing the brand across Asia, CEO and co-founder Elaine Young said: "We have to be careful not to change the DNA of the brand, especially when entering new markets." Shama have positioned themselves at the higher end of the market, offering concierge services and bespoke design. "We are letting go of more projects than we are taking on," said newly appointed Chief Operating Officer, Bhupesh Yadav, explaining that quality would remain very much at the heart of the Shama product.

Expansion is targeted to cities that are attracting Foreign Direct Investment, and will take a number of forms, with third party management contracts and joint ventures expected to play a big role: "The partners we choose, and the building owners we work with must be on-board, they must buy-in to the brand," Young said. For those that do, returns will be higher, she believes, citing the example of Shama Luxe apartments in Shanghai. The building owner recently divested their interest after only two years, receiving a significant return on investment. RFP