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Elaine Young
CEO and Co-Founder, Shama
Elaine Young, mother of three, is a savvy expat entrepreneur based in Hong Kong. In 2009, Elaine was named the Entrepreneur of the Year by the prestigious RBS Coutts and Financial Times, Women in Asia Awards, and in 2010 she successfully sold her multi-million dollar property business, then stayed on as CEO. Here is her story...
In 1986, Elaine moved from London to Hong Kong and gained first-hand experience in the real estate sector with roles in a surveyor firm and a high-profit residential sales and leasing agency. In 1995, she and her business partner bought two buildings in London and furnished them to become highly profitable serviced apartments. In 1996, they introduced the first boutique serviced apartment building to Hong Kong, then slowly more thereafter.
In 2006, Morgan Stanley Real Estate acquired a majority interest in Elaine's company, Shama, with Gaw Capital as a secondary shareholder. In early 2007, Shama expanded into mainland China by opening Shama Luxe in Shanghai. Now Shama operates over 13 properties in Hong Kong, Mainland China and Thailand and is valued in excess of HKD 1.7 billion.
In October 2010, Shama was acquired by ONYX Hospitality Group – a Thailand-based hotel management company. Never one to sit idle, Elaine stayed on as Shama's CEO – and has even more business expansion plans. |
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Expat Women's Interview with Elaine |
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Expat Women: Elaine, what gave you the idea to start Hong Kong's first boutique serviced apartment building and what convinced you that it would succeed? |
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Elaine: My business partner and I were investing in real estate in various markets around the world and in 1996 felt that the time was right to buy in Hong Kong. We purchased a block of 20 apartments with the intention of doing nothing more sophisticated than selling the units individually. We created a wonderful show flat, put a charming English/Chinese speaking security guard on the ground floor, and employed a household helper; all of which was considered unnecessary at the time.
However, due to the impending 1997 handover of Hong Kong back to China, buyers seemed nervous to invest in real estate, which was at record prices. Instead, many people wanted to rent the show flat for huge sums, so we decided to furnish all the apartments – and we changed our business concept.
Within a few weeks we had rented all the units, were achieving an exceptionally high yield and then received an unsolicited offer to purchase the entire block. We sold it after just four months and made a spectacular return. We realized then that we had a very successful business model on our hands, one that we had fallen into by accident. |
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Expat Women: What were some of the major milestones in your business that catapulted Shama forward? |
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Elaine: Each change of partner has been a milestone for Shama and each has taken the company to the next level. Initially it was in 2000, when Schroders bought the majority stake of our portfolio and I became the CEO. We branded the company Shama the year after and purchased our flagship property, Shama Causeway Bay, in Hong Kong.
Then in 2006, Schroders sold their shareholding to Morgan Stanley and Gaw Capital. Both companies are strong in mainland China and gave us great support in setting up and opening our first property in Shanghai in 2007. Entering the China market was a significant step as now this accounts for 75 percent of our portfolio.
October 2010 marked another milestone: Onyx, the Thai hospitality group, acquired Shama, to add to portfolio of brands (and I stayed on as CEO of Shama). |
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Expat Women: How did Hong Kong's business culture help or hinder your success? |
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Elaine: Hong Kong is a wonderful place to do business, and I believe, especially as a woman. The city is extremely entrepreneurial and willingly embraces and encourages fresh ideas. People are generous with their time and connections and will make valuable introductions if they believe in you.
Being a woman is not the disadvantage that it is seen to be in some cities, and in my experience, companies do not worry about hiring a woman.
Hong Kong also benefits from having wonderful household helpers that allow a woman to work while they help run the home and help raise the family. Without this fantastic support system, we would not, with such ease, be able to juggle a career, husband, children, and not lose sight of ourselves. |
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Expat Women: What major challenges did you face with Shama and how did you overcome them? |
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Elaine: During challenges such as SARS, the Bird Flu, and the Global Financial Crisis (GFC), we had to really be strategic in our business approach. We cut costs, ran tight staffing levels, worked flexible weekend schedules and still tried to be a great employer. |
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Expat Women: What top five tips would you give to expat women wanting to start businesses abroad? |
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Pick your business partner(s) with great care. It is vital that you have aligned interests and goals. |
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Focus on locals not expats, as they are by far the majority so should be your target customer.
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Do not be put off by being a minority. Embrace the differences and see it as positive that you stand out. You will be remembered! |
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Do not hesitate. If you have a good idea, go for it. Who knows how long you might be living in this city, so do not miss the opportunity. |
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Join all the Chamber of Commerce, good business societies and attend interesting events so you can network like mad. |
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Expat Women: What innovative Elaine Young ventures should we look out for in the future? |
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Elaine: I am very interested in the Senior Retirement field in China and am currently exploring a possible new business venture. It would be under Shama, but would be a twist on our current serviced apartment model. |
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Expat Women: Elaine, thank you very much for sharing your entrepreneurial experiences and wisdom. We congratulate you on your incredible success in Hong Kong and mainland China and we wish you and Shama all the very best for the future! |
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