Leadership, motivation, and managerial effectiveness in sharia hotels: Implications for guest satisfaction and tourism development in Kendari, Indonesia

The hospitality industry plays a critical role in meeting the growing demand for halal tourism, particularly through the sharia hotel business model that integrates Islamic principles into its operations. Effective leadership is essential for fostering a value-based work culture, spiritually motivating employees, and delivering services aligned with religious values. This study investigates the effects of transformational and transactional leadership styles on work motivation, managerial effectiveness, and guest satisfaction in sharia hotels in Kendari City. An explanatory quantitative approach was employed, utilizing Structural Equation Modeling-Partial Least Squares (SEM-PLS) with data collected from 176 sharia hotel employees. The results indicate that transformational leadership significantly enhances managerial effectiveness and service quality, which in turn increases guest satisfaction. Although transactional leadership contributes to managerial effectiveness, its impact on guest satisfaction is limited. High work motivation also plays a crucial role in improving managerial effectiveness and service performance. The primary contribution of this study lies in offering a deeper understanding of value-based leadership in the sharia hospitality sector, particularly emphasizing the importance of spiritual and emotional aspects in enhancing guest experiences. The study enriches the organizational leadership literature by providing new insights into the interplay between leadership style, work motivation, and guest satisfaction in halal tourism. Practical implications suggest that sharia hotel managers should adopt leadership styles that are not only operationally efficient but also consistent with Islamic values. Future research is recommended to further explore transactional leadership influences and to expand investigations across diverse regions and larger samples within the sharia hospitality industry.