The Business Times
BT LUXE

Sonia Cheng: Building a family’s legacy in hotels and jewellery

Initially dismissed as just a billionaire’s daughter playing hospitality, her super-luxe hotels have won fans and made competitors take her seriously

Corinne Kerk
Published Thu, Sep 14, 2023 · 06:30 PM

SEEING THAT SHE HAILS FROM one of Hong Kong’s wealthiest families, you would half-expect Sonia Cheng to sweep into the room with the kind of intimidating aura emanated only by the scions of crazy rich tycoons.

Instead, she is surprisingly personable, barely glancing at what is presumably a script prepped for her, and speaking animatedly while her minder gently frets from across the table.

The 42-year-old is chief executive officer of the Rosewood Hotel Group and granddaughter of the late Cheng Yu-tung, who escaped war in mainland China in 1938 and went on to build Hong Kong’s Chow Tai Fook Jewellery Group and New World Development real estate and investment conglomerate. Her father, Henry Cheng, is now chairman of both groups of businesses.

In 2008 and at barely 28, she joined the family’s small regional hospitality business as CEO. Three years later, it bought Rosewood, which includes The Carlyle in New York, from its Texan owner.

When she met BT Luxe at Rosewood’s corporate office in Hong Kong, Cheng was quick to acknowledge her privilege. But the fact that she is also smart (Harvard graduate in applied mathematics), energetic, diligent and a multitasking mother of five doesn’t escape you. With her, the billionaire Cheng family definitely lucked out.

A rose by any other name

In the twelve years since the Rosewood acquisition, Cheng has grown the brand – which previously managed 20 properties, mostly in the Americas – into a portfolio of 31 hotels and resorts globally, including Paris’ historic Hotel de Crillon. Among the 30 new properties in the pipeline are its first in Germany (Munich), New Zealand, the Netherlands (Amsterdam) and Japan (Miyakojima). Potentially, there could also be a Rosewood Singapore.

A NEWSLETTER FOR YOU
Friday, 2 pm
Lifestyle

Our picks of the latest dining, travel and leisure options to treat yourself.

The brand’s tagline, “a sense of place”, refers to each hotel’s subtle nod to their location and is realised through their design and everything that is tastefully and thoughtfully curated for each property.

Remarkably, Cheng has had no formal hospitality training, having previously worked as an investment banker at Morgan Stanley, and then private equity firm Warburg Pincus.

“Oh, it was daunting,” says Cheng of her entry into the world of hospitality. “There’s definitely a lot of pressure. But I saw the opportunity in the industry and was just very excited about it.”

She had a vision to build an ultra-luxurious hotel brand for millennials like herself, so despite sceptics, threw herself into learning about the industry, and persuaded talents to join her as she went along.

The first Rosewood hotel to open under her leadership was Rosewood London in October 2013. The beautiful heritage building is in High Holborn, “instead of traditional luxury hotel locations like Mayfair or Knightsbridge”.

So the very hands-on CEO gave it a British sensibility – but with a modern and chic approach – and re-conceptualised all the F&B outlets to turn them into buzzy, sought-after destinations. Today, there is a waiting list for its trendy and sophisticated cocktail bar, she says.

Still, the naysayers hung around when she worked on her next project – Rosewood Beijing – in a landmark building in Chaoyang, on which she’d spent years renovating.

“It was challenging because that was our first Rosewood in Asia and Beijing was a very competitive market,” Cheng recalls. “All the major brands with their loyalty programmes were there and many people were asking me, ‘Are you sure? No one knows Rosewood’.”

But again, Cheng was clear about what she wanted – from vibes to visuals. The property became an urban oasis blending Chinese culture and contemporary luxury, and the hottest spot in Beijing within months of opening in October 2014. A foodie, she also introduced innovative F&B concepts, including an atypical, lively Chinese restaurant with an open kitchen and an elevated hotpot restaurant with plenty of atmosphere.

Till now, the hotel has the highest revenue per available room in Beijing.

“This proves that while we may not have the scale like other brands, if your concept is right, you deliver the right experience and it resonates with your target audience, it will really be successful.”

And then, of course, there is Rosewood Hong Kong, which Cheng describes as a “critical milestone” as it embodies everything she’d thought about for the brand. From its plush rooms to its bustling, hard-to-book restaurants and sleek Asaya urban wellness concept, it’s obvious that every detail had been carefully considered and painstakingly put together.

Unfortunately, the hotel opened in 2019, just before the pandemic hit. From the experience, Cheng learnt the importance of being agile, nimble and “there for the team”. The hotel introduced a kids’ summer programme staycation concept and also created a successful e-commerce platform for food and amenity delivery that remains a popular gifting platform.

The next big revamp

Among her other roles, Cheng is also vice-chairman at Chow Tai Fook, executive director of New World Development and board member of the Hong Kong Tourism Board.

Currently, she is looking into transforming Chow Tai Fook so it is “relevant for generations to come”. When you note the jeweller’s very traditional image, Cheng winces slightly. “Yes, yes, yes!” she laughs.“I know, but we’ll get there. Trust me.”

She is working on modernising the brand, which has over 7,000 stores worldwide, while ensuring its DNA is kept. “It’s the biggest jewellery company by market cap in the world. But it’s not as well-known as it should be. So, there’s a huge opportunity to elevate it.”

Cheng promises there will be “a big, big change” next year and going by what she has done with Rosewood, you don’t doubt that at all.

With a full plate, she readily concedes that she “still struggles every day” trying to balance work, an unforgiving travel schedule and motherhood. Her fifth child was born late last year and her oldest is just 10.

“It’s really quality time rather than quantity, right? There are important moments and times which you just have to commit to your kids,” she says, adding that by working, she is also serving as a role model for them. “So you do your best to strike that balance, but there’s never an easy answer.”

Given that she is such a capable woman, you would think Cheng will be keen to chart her own path. Truth is, she’s never really thought about that.

“I’m very lucky that my father, my grandfather gave me the opportunity and empowered me with Rosewood,” she says. “Without my father’s support, we could not have done what we’ve done. It’s really the company, the family, the team. And then Chow Tai Fook is a family legacy. So, what’s most important for me is how I carry my grandfather’s legacy forward.”

READ MORE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here