Rosewood Hotels

Table of Contents

Situational Analysis 1

Demand 1

Rosewood Hotels first began in the hotel industry 25 years ago as a private hotel management company. They operate 12 iconic luxury hotels located all over the world. Their global reputation has been muted due to the lack of advertising in their individually branded hotels. This was a concern to the Rosewood’s CEO and president. They want to enact a new branding strategy without hindering the distinctiveness and individuality of their hotels.

Situational Analysis

Demand

The demand for the hotel industry is selective. This means that people have a need and are actively seeking out a solution to fulfill that need. Rosewood has 12 hotels worldwide with a total capacity of 1,513 rooms available. In the previous year there were 115,000 unique guests that had stayed in the hotels. Their main competition consisted of two groups of luxury hotels. Corporate hotels like the Ritz-Carlton and Four Seasons which are referred to as “canned and cookie cutter” approaches meaning that they are all the same. The niche that Rosewood operates under is called “collection” hotels which pride themselves in the diversity and uniqueness of each property. Competition in the luxury hotel industry is intense and very competitive. Rosewood Hotels have a very low brand recognition rate and this makes it difficult for them to compete in a market that is crowded with other luxury hotel operators.

Rosewood is competing for a niche in the market place of individuals whom value “collection” hotels. The vast majority of the luxury hotel market seems to prefer and value corporate branded luxury. This has created substantial limitations on the consumers that Rosewood can market to. The fact that Rosewood has low brand awareness makes it difficult for them to gain value in their name with people not associating them with the hotels. Some of the properties had a 40% rate of return guests with only 5% staying in more than on Rosewood...