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Case Study – Rosewood Hotels Essay

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Case Study – Rosewood Hotels

Abstract
This paper will discuss the pros and cons of the Rosewood Hotels moving from individual brands to a corporate brand. It will look at the history of Rosewood hotels, how they got to where they are, their customer base, and where they want to go. It will look at the concept of customer lifetime value as it relates to the Rosewood Hotel customer, then make a recommendation for or against tying its corporate Rosewood brand to all of its present and future hotels.

Background Rosewood Hotels was established by the Caroline Rose Hunt Trust Estate in 1979. Rosewood launched its first hotel the mansion on turtle Creek, Dallas Texas in 1980. Over the next 25 years rosewood purchased several high-end …show more content…

Each hotel has its own client base based on that experience in the brand name of that individual hotel. Many of the individual hotel owners, especially the Carlyle in New York feel that attaching a corporate brand may cheapen the identity of the individual hotel. There's also the fact that according to surveys done by the Rosewood Company itself, the Rosewood name is almost completely unknown among its current customers. It may be conceived by their existing customers that the Rosewood Company bought out these hotels and may change their management style and customer experience, rather than Rosewood being there all along.
Advantages
If done correctly, the Rosewood name can tie all of these prestigious hotels together. The name Rosewood can carry the same prestigious qualities that the Ritz-Carlton and the Four Seasons Hotels carry. The Dev & Strook article mentioned that although some properties in your return visits of up to 40% of guests, only 5% of Rosewood guess it stayed more than one of Rosewood properties. This suggests that many of their customers, when returning to the same vacation destination choose to stay at that particular Rosewood Hotel. However it's possible that when going to another vacation destination their guests may not realize that one of the hotels in that area are also owned by Rosewood. This is a situation where corporate brand recognition would be extremely beneficial.

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