Rosewood Hotels & Resorts is considering ways to increase brand awareness and cross-property usage among existing guests. They propose promoting their "Sense of Place" philosophy, training travel agents who work with cross-property guests, establishing a "Rosewood Junkies" program, and launching a Rosewood Passport. This is expected to increase guest retention and profits over the long run. They provide a timeline for expanding existing loyalty programs, conferences, merchandise launches and surveys to implement this recommendation over the next four quarters.

1. Case Brief: Rosewood Hotels & Resorts [Monday November 3, 2008 ] Prepared By: Gillian Clarke, Kassandra Kappelos & LaWanda Smith

2. Welcome: Board Members, Executives & Distinguished Colleagues Stephen Hunt Sands, Chairman of the Board Caroline Rose Hunt, Honorary Chairman John M. Scott, President & Chief Executive Officer Robert Boulogne, Chief Operating Officer Ernest Glidden, Senior Vice President of Finance Sheri Line, Corporate Director of Human Resources Fred Crespo, Corporate Director of Information Systems

3. BC, Canada San Martin, CA Santa Barbara, CA Santa Fe Dallas Atlanta New York

4. St. John, USVI Virgin Gorda, BVI Antigua

5. Los Cabos, Mexico Rivera Maya, Mexico

6. Riyadh Jeddah Tokyo

7. CordeValle A Rosewood Hotel One CordeValle Club Drive, San Martin, CA 95046

8. Decision & Background Decision: Increase brand awareness among existing guests at individual Rosewood properties Background: Current under-positioning in cross property market segment; No brand awareness Goal: Increase guest cross-property usage by 5%

9. Recommendation Promote "A Sense of Place®" Train travel agents associated with current cross-property guests Establish “Rosewood Junkies” Rosewood

10. Rosewood Passport

11. Basis for Recommendation Un-tapped potential: Building Brand Equity 40 % 5 %

12. Risks & Assumptions Risk: Resistance from managers, guests and co-op owners to corporate Rosewood brand. Relevant costs: Must be less than profits Assumption: Long-term strategy toward increasing guest retention, cross property use and resulting expected profits.

13. Customer Lifetime Value (CLTV)

14. CLTV: Table Inputs

15. Action Steps: Timeline Expand Customer Preference Program Management Elite World Travel Conference at the Carlyle Launch Merchandise Online Promotional Bags Passport Launch Follow-Up Survey Financial Analysis 1 Q 2 Q 3 Q 4 Q

16. Global Call Center Solution Extensive agent training programs - includes product, sales and customer service training Answer calls with customized scripting to emphasize unique quality of the Rosewood story Support multiple languages

17. The Carlyle A Rosewood Hotel A distinctive Upper East Side landmark since 1930 Madison Avenue at 76th Street New York, NY