Rosewood Hotels and Resorts Case Study

Rosewood Hotels and Resorts is a business that has 12 establishments worldwide. Until 2004, the company has run an individual branding strategy; but recent events, such as the adoption of a new President and CEO, have the company considering a corporate branding strategy. Rosewood seems to have hit a roadblock with their current strategy; they are concerned that their guests do not fully understand the Rosewood brand. Rosewood believes if they are able to adopt a corporate brand, that their guests will recognize more of their facilities and become loyal which in turn could increase revenue because their guest’s customer lifetime value will have risen. Rosewood also believes that by implementing a corporate brand, they will have an advantage over their competitors. The main issue with their current branding is that their customers are unknowledgeable about their brand. If they instill a corporate brand, more guests will choose their Hotels over competitors.
Rosewood believes that by becoming a company who runs a corporate brand strategy, they will be able to increase their cross-selling rate. According to analysis of guest data, corporate-branding properties had higher cross-selling rates among their properties than those that utilized individual branding. Research shows that having a corporate-branding strategy resulted in a 10% to 15% cross-selling rate; this is because up to 40% of their guests returned for another stay. We compare these numbers to those of the individual-branding’s cross-selling rate of 5% to 10%.
There are many pros and cons that Rosewood faces when changing from an individual brand to a corporate brand. Until 2004, Rosewood Hotels and Resorts had individual amenities that could thrive on their own as an individual brand. By switching to a corporate brand, Rosewood is increasing their brand awareness. Many people who have stayed in their high-end resorts have become accustomed to the lifestyle that the hotel provides during their stay.