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Rosewood Hotels & Resorts Executive Summary

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Rosewood Hotels & Resorts: Branding to Increase Customer Profitability and Lifetime Value
Nature of Situation
Rosewood Hotels and Resorts is a privately held hotel management company. Rosewood is the corporate entity behind many popular luxury hotels such as The Mansion on Turtle Creek and the Carlyle. Rosewood developed the luxury properties based on their concept of “A Sense of Place”. “A Sense of Place” incorporated the unique features-characteristics-culture of the location with the hotel to create a unique hotel at each location. In order to maintain the uniqueness of each individual hotel, Rosewood has kept the corporate company hidden from the boutique hotels. The strategy has allowed Rosewood to become a success and remain separate from some of their chain competitors. The differentiation of each hotel has created iconic hotels with no brand recognition amongst them. The following data demonstrates the importance of having brand loyalty in the luxury hotel business. 2003 report showed majority of customers did not know the Rosewood Brand.
In 2004, John Scott, Rosewood President and CEO, and Robert Boulogne, vice president, were working to boost the growth and sales of the company. They looked to a competitor, AmanResorts, who had clientele that would seek out their hotels: Rosewood wanted to create the same clientele awareness. Rosewood was also collecting more data from their guests by using its central reservation system (CRS). The database is currently being developed in order to track more on the clients to try to further improve the experience. The worst data collected showed only 5% of Rosewoods guests were staying at multiple hotels.
• Return visits 40%
• Multiple hotel stays 5%
• Rosewood Cross-selling rates 5%-15%
• Corporate branded cross-selling rates 10-15%
Guest Loyalty came from
Room Upgrades Flexible Check-in & Check-out...

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