1. Summary of the Key Facts of the Case
Rosewood Hotels and Resorts is a private luxury hotel management company established in 1979, headquartered in Dallas, Texas. The first hotel managed by the company was The Mansion on Turtle Creek, opened in 1980. As of 2003 the Rosewood had 12 hotels worldwide, with a total capacity of 1,513 rooms, with a nightly rate varying between $120 -$9,000. Rosewood competed with luxury corporate branded hotels such as Ritz-Carlton and Four Seasons but unlike them, Rosewood operated unique properties, each with its own name or brand. Each one of such hotels reflected local character and culture defining Rosewood’s “Sense of Place” philosophy. This meant that each one of the properties captured what was unique about the given location; architectural details, culinary concepts, interiors, etc. The Rosewood branding was soft and meant to be complementary; the Rosewood logo appeared discreetly on low-profile amenities such as clothes hangers and stationary. Hotel greetings did not mention the Rosewood name. 1. Define the branding options and discuss the nonfinancial pros/cons of each. Address the pros and cons and how you will deal with them. Rosewood brand had low recognition and brand-wide usage among guests. While guests were seeking a unique Rosewood property experience and product, they were not making the connection between Rosewood properties and were increasingly identifying with other strong hotel brands. Guest data revealed that although some properties enjoyed returned visits of up to 40% of guests, only 5% of Rosewood guests had stayed in more than one of Rosewood’s properties. In order to encourage guests to use more than one Rosewood hotel, the company could either set up a frequent-stay program or it could adopt a corporate branding approach. If implemented correctly, the first approach could double repeat business. According to market research services, in 2003 the number of guests enrolled in frequent–stay...
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