Islamic tourism is an activity that provides the tourism facilities and services with the concepts and values of Islam. Islamic tourism terminology in Indonesia is known as Sharia Tourism, and is internationally known as Islamic tourism. One important part that must exist in Islamic tourism development is the availability of Sharia accommodation or Sharia hotel. Sharia Hotel is the hotel operations and services adapted to Islamic principles or guidelines of Islam.This article describes the characteristics of sharia hotels, and analyzes the business prospects of sharia hotel. The research location in Surabaya, which is one of the business centers in Indonesia.The study used a qualitative approach. Data collected through interviews and observations.The results showed that characteristics of sharia hotels include: (1) physical aspect: the interior and exterior of the hotel using the attributes of Islamic (calligraphy, building pillared resembles a mosque, buildings without human figures or animals and ornaments upon which are symbols of Islam; (2) human resource: for female staff wear the veil (hijab), protective clothing and loose, use makeup simple, and do not use excessive jewelry and for the male staff wearing a courteous, long sleeves and muslim caps ; (3) service: greeting using the greeting Islamic, attitude of staff polite, gentle and smile sympathetically; (4) facilities: halal restaurants, filter pornography on the TV channel, there is no facility music room, night club, bar with alcohol, prostitution, gambling, and facilities which is forbidden in Islam, the pool is enclosed (indoor) and separate male and female, played Islamic music; (5) Policy: allow only guests and the mukhrim to stay in one room, payment of Islamic bank (sharia bank); (6) Managerial: timely payment of employee salaries, in cooperation with Islamic banks.The market of sharia hotel is conducting pilgrimage travelers, families and Muslim businessmen. The market reasons for using sharia hotel in general is closed access to place of pilgrimage destination and other Islamic destinations (mosque). While the market in the form of sharia family choose the hotel because it is quieter, safer for families and guaranteed halal food served.