Rosewood Sets Growth Strategy Into Motion

NEW YORK? Rosewood Hotels & Resorts is transitioning from ?being small to getting bigger,? President and CEO Jim Brown said recently. The privately held, luxury hotel management company is extending its management contracts and expanding its portfolio from 11 properties to 30 by 2003, Brown said. ?But to grow the company, you have to show results,? he said. ?And Rosewood has done that.? In 1998, the company increased revenue 15% while doubling profits over the previous year, according to Brown. It also tripled the average length of its management contracts to 30 years. The heart of the company?s strategy lies in increasing operational effectiveness as it grows. Efficient and detail-oriented operations is a trademark of Brown?s management style. Simultaneously, Rosewood is embracing a hospitality management style that began when Rosewood was launched 20 years ago under Caroline Rose Hunt. It?s a hospitality management style that positions a hotel as a destination point within a highly competitive market. ?We will go back to her original vision,? Brown said. New hotels added to Rosewood?s portfolio will be exclusive properties in niche markets that also ?create a sense of place,? he said. Creating a sense of place has been an essential component of Rosewood?s strategy from the beginning when it opened the Mansion on Turtle Creek in Dallas in 1980. The Mansion?s hand carved fireplaces, stained glass windows and rich architectural details set a high standard for Rosewood and the property quickly emerged as the flagship hotel in the company?s portfolio. Throughout the 1980s, Rosewood developed, acquired and managed hotels in various locations around the world. These are hotels that have ?an air of mystique? about them, Brown said. Ultimately, it?s this quality that makes Rosewood properties a destination for guests? and a reason for them to return. Through the early 1990s, Rosewood continued to expand its portfolio. In 1995, it was awarded management contracts for properties such as the Hotel Al Khozama in Saudi Arabia and the Las Ventanas al Paraiso in Mexico. In 1997, Rosewood entered into a partnership with Maritz, Wolff & Co. ?A true partnership? is how Brown describes it. The company then went through several executive personnel changes. Brown said the design of the previous management structure was inefficient and ?cross functional.? An executive team composed of operational specialists in f&b, purchasing, human resources and sales implemented a reorganization plan. In 1998, Rosewood was selected to develop Martineau Bay in Vieques, Spanish Virgin Islands, which is scheduled to open next year. The company also announced its association with REVITAL S.A.L. and the development of a new spa resort in Lebanon. Last month, Badrutt?s Palace Hotel in St. Moritz, Switzerland, picked Rosewood as its management partner. The agreement is designed to preserve the original vision that the Badrutts had for the century-old hotel. Located in the country?s premier ski area, the 234-room hotel is a five-star property with eight restaurants. The company is driving forward with its growth strategy and trolling for properties that meet its criteria. ?We look for something that has a residential feel,? Brown said. ?It really has to be unique and it has to create that sense of place.?