Premium Essay

Rosewood Hotels

In: Business and Management

Submitted By moebius
Words 1251
Pages 6
SUMMARY

Rosewood Hotels & Resorts (Rosewood) was a group of private iconic luxury hotels without any corporate branding in 2004. To boost the company’s growth, the then CEO and Vice President decided to bring about corporate branding of Rosewood hotels but also wanted to maintain its distinctiveness of each individually branded hotel.

CURRENT SCENARIO

As of 2003, Rosewood had 12 hotels worldwide with a total capacity of 1513 rooms. The nightly rates ranged from $120 for one of the Saudi Arabian properties to $900 for a Canadian lodge. Rosewood was known for its ability to enhance its property’s value by being unique and differentiated from the regular chain of hotels. But on the competitive front they did compete with corporate branded hotels like Four Seasons, Ritz-Carlton, St. Regis, One & Only and Mandarin Oriental Hotels. And they also competed with collections of individually branded hotels like Auberge, Rock Resorts and Orient Express.

Rosewood had continued to brand itself as an individual collection as it wanted to support its core value of “Sense of Place”, where each hotel exhibited its local character, culture and design. The individual hotel names were more prominent than the Rosewood brand itself.

In April 2003, John Scott was taking over the CEO position in Rosewood, realized the limitations of individual branding. He realized that while the guests sought the unique Rosewood property experience, they didn’t make connections to other Rosewood properties under the brand. John and a few other executive management members including the board of directors realized that majority of the customers valued branded-luxury hotels (like Four Seasons) compared to the limited crowd that sought the uniqueness and distinctiveness of Rosewood hotels.

To address this situation, John Scott and his team decided to promote cross-property usage and...

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