Despite the pandemic, high-end hospitality group Rosewood Hotels & Resorts has remained bullish on long-term expansion, announcing five new projects in Spain, Italy, the Netherlands, the French West Indies and China over the past year alone. Since the start of 2021, the company has also unveiled plans to open yet another Italian outpost, the Rosewood Rome, in 2023. Hotels editor Christina Jelski recently caught up with Rosewood Hotels & Resorts president Radha Arora to get the latest update on the brand's pipeline as well as insight into global recovery efforts.
Radha Arora
Q: Rosewood has stayed far from quiet during the pandemic. How does the company's current level of expansion activity compare with that in years past?
A: Our pipeline [currently includes] 21 properties under development, many of which reflect deals signed in the midst of the pandemic. [This represents] our strongest development pipeline to date. We're also continuing to focus on the expansion of our branded residential product, Rosewood Residences, which saw a 48% increase in demand in 2020 compared to the previous year. This segment has long been a key component of our business model and continues to be a major focus as travelers are prioritizing privatized experiences more than ever before, with approximately 50% of our development pipeline currently including a residential component.
Q: As we enter recovery mode this year, are you seeing any bright spots within the U.S.?
A: Despite the difficulties surrounding travel in the time of Covid-19, many of our properties are seeing success. In the United States specifically, local and regional travel is on the rise, with people looking for both mini-escapes and long-term stays close to home. Our property in Montecito, Calif., Rosewood Miramar Beach, saw incredible occupancy last summer as the highest performing resort in its competitor set. Although the property had to shift its operations again in late 2020 due to the implementation of a second statewide stay-at-home order, it has fully reopened once more, and we have every expectation that it will continue to build steady business as we enter further into 2021. In Dallas, Rosewood Mansion on Turtle Creek has similarly found success as a result of the hotel's "staycation" experience, with nearly 80% of guests coming from the surrounding regions.
Q: As the threat of Covid-19 continues to be mitigated by vaccination and testing efforts, are you seeing increased demand for international travel?
A: We are starting to see an increased interest in "domestic-plus" destinations that are just a short flight away, which includes Mexico and the Caribbean for U.S. travelers. Our properties in these regions have seen increased interest as a result of this trend, as they are well suited to meet the needs of today's travelers. In addition to offering myriad outdoor activities and amenities ideal for social distancing, including designated beach chairs for guests to use throughout their stay, many of our properties in the region have developed private jet partnerships. This business is only expected to grow. In fact, Rosewood Little Dix Bay, our resort in the British Virgin Islands, is already projecting near total occupancy over the 2021 holiday season. This paints a promising picture for continued recovery in the region.
Q: How do you think Covid-19 has potentially changed the luxury hospitality sector longer term?
A: The notions of privacy and safety are now more connected than ever before. Travelers will continue to seek private experiences, which the luxury hospitality industry is well-poised to deliver. And I believe that branded residences, like Rosewood Residences, will continue to be in high demand as they offer the utmost in privacy and seclusion combined with the five- star services and amenities of an ultraluxury resort. While there will certainly be long-term effects on how people travel, I believe that when we reach the end of this pandemic, the demand for travel will return at an all-time high.