1.Introduction
The aim of this report is to analyse and examine the decision of a private hotel
management company with 25 years of history. The new strategy option aimed to boost
company’s growth through incorporation of its brand name into the name of each hotel that
may also lead to maximise customer lifetime value. If the company didn’t choose that
option then it would remain as individual branding and retain its own culture. In addition,
the advantages and disadvantages of each choice will be analysed and finally the best
viable option will be recommended.
2.Background Information
2.1: History
Rosewood Hotels & Resorts, L.L.C is located in Dallas, Texas and was established in 1979
by Caroline Rose Hunt Trust Estate. The ‘’Mansion on Turtle Creek’’ that opened in 1980,
was the first hotel the company had been responsible for. Rosewood and Trust saved the
hotel from demolition and transformed it into a world class hotel and restaurant. ‘’Little
Dix Bay’’ had the same reborn fate as Turtle Creek and with new builds; the
‘’Lanesborough’’ in London and ‘’Las Ventanas Al Paraiso’’ in Mexico, Rosewood
managed to build a good reputation.
2.2: Rosewood culture
The firm, soon or later became known for the unique character that gave to the resorts. The
hotels the company managed, had their own personality and with a small ultra – luxury
residential style made them distinguished from the other chain – like luxury competitors.
Thus, the property value was enhanced in Rosewood’s hotels and started competing with
other groups of luxury hotels like the corporate branded ‘’Ritz-Carlton’’ and individually
branded unique hotels like ‘’Auberge’’.
3. Development
3.1: Strategic Option No.1- Individual Branding
The first option Rosewood Hotels & Resorts had, was to remain as individual brand. That
implied that Rosewood’s properties would have their own name or brand. Additionally,
they would retain their own architectural details, interiors and culinary concepts. As a
consequence, ‘’Sense of place’’ philosophy of the hotel would be maintained and each
property would reflect its local character and culture at its own location. In order to
achieve this, Rosewood provides flexible service standards adaptable to the locations of
the hotels. Moreover, something that gives Rosewood its uniqueness is its flexibility and
creativity that enable an incomparable menu design and a special approach to every guest.
3.1.1: The level of recognition of ‘’Rosewood’’ name under strategy no.1
Rosewood hotels and Resorts marketed itself under its own brand name and the related
advertising of the company was limited only to clothes hangers or stationery whereas the
