Rosewood Hotel & Resorts

Rosewood’s Brand-wide Customer Lifetime Value Spreads

Without With Rosewood
Rosewood Corporate
Branding(2003) Branding(2003)
(Actuals in Blue, Assumptions in Red, Calculations in Black)
Marketing and Operating Expenses Per Year(in $) 1000000 1000000

Total number of unique guests 115000 115000

Average daily spendb(in $) Total Expenditure per guest per day on room,
food, beverage, and other services 750 750
Number of days average guest stays 2 2
Average gross margin per room 32% 32%
Average number of visits per year per guest 1.2 1.3
Average marketing expense per guest (systemwide)(in $) 130 138.70
Average new guest acquisition expense (systemwide)(in $) 150 150
Total number of repeat guests 19169 24919
Of which: Total number of multiproperty stay guests 5750 11500
Of which: Total number of non multiproperty stay guests 13419 13419
Number of Multiproperty Guest 5% 10%

Discount Rate
Marketing Expenses Growth Rate
Guest Revenue Growth Rate

Select Operational Statistics

Average Daily Room Rate(in $) 351
Occupancy 62%
Rev PAR(in $) 217.62

Average Guest Retention Rate 16.67% 21.67%

Average Gross Profit per Guest 576 624

Year 0 1
Gross Profit Per Guest 576 610.6
Acquisition Expense Per New Guest 150 0
Marketing Expense Per Guest 130 133.9
Net Profit Per Guest 296 476.7
Retention factor
Discount factor 1.00 0.93
Net Present Value(NPV) 296

Year 0 1
Gross Profit Per Guest 624 661.4
Acquisition Expense Per New Guest 150 0
Marketing Expense Per Guest 138.7 142.9
Net Profit Per Guest 335.3 518.6

Retention factor 21.67% 21.67%

Discount factor 1.00 0.93
Net Present Value(NPV)

Unique Guest a couple or family staying in the same hotel room co

time Value Spreadsheet Model

8%
3%
6%

2 3 4 5 6
647.2 686.0 727.2 770.8 817.1
0 0 0 0 0
137.9 142.1 146.3 150.7 155.2
509.3 544.0 580.9 620.1 661.8
 0.86 0.79 0.74 0.68 0.63

2 3 4 5 6
701.1 743.2 787.8 835.1 885.2
0 0 0 0 0
147.1 151.6 156.1 160.8 165.6
554.0 591.6 631.7 674.3 719.5

21.67% 21.67% 21.67% 21.67% 21.67%

0.86 0.79 0.74 0.68 0.63

n the same hotel room counted as one unique guest.