Fortune
Rosewood Hotel Group institutes a global 16-week paid parental leave policy as Asia grapples with crashing birth rates
Hong Kong's fertility rate has significantly declined to approximately 0.8 children per woman, well below the replacement level of 2.1 required for population stability. The number of registered births in the city fell to just over 31,000 in 2025, marking a record low that stems from a consistent decline over the years.
Challenges such as long working hours and high childcare expenses make the decision to start a family increasingly difficult for many households. Currently, Hong Kong offers 14 weeks of paid maternity leave but only five days of paid paternity leave. Efforts to implement childcare subsidies, including a one-time "baby bonus" of 20,000 Hong Kong dollars (about $2,550), have not effectively reversed the trend.
The situation in Hong Kong reflects a broader issue, with several Asian economies, including South Korea, Japan, and Mainland China, facing similar declines in birth rates. Even less affluent countries like Thailand are aging at a rate that exceeds expectations based on their level of economic development, raising concerns that such nations may "grow old before they get rich."
In response to these demographic challenges, Rosewood Hotel Group, a luxury hotel chain governed by Hong Kong's Cheng family, recently launched a progressive parental leave policy that provides 16 weeks of fully paid leave to all employees, irrespective of gender or job rank; the policy also extends to adoptive parents. This initiative is applicable across corporate offices and managed properties on a global scale.
"Implementing this policy is expected to positively influence our culture and workforce, ultimately fostering long-term business resilience," states Keno Lung, Rosewood Hotel Group's global senior vice president for talent and culture. "While it is undoubtedly the right thing to do, the impact on our business is also significant."
This initiative positions Rosewood ahead of the statutory minimums prevalent in most Asian regions, which historically lag behind North America and Europe in terms of parental benefits. Notably, this development comes at a time when many companies are retracting their family leave policies. For instance, Deloitte has reduced paid family leave from 16 weeks to eight for internal support roles and is also discontinuing support for certain fertility treatments. Concurrently, Zoom has scaled back leave for birth mothers to 18 weeks from 22 and non-birthing parents' leave to 10 weeks from 16.
Founded in Dallas in 1979, Rosewood is now an integral part of the Cheng family's business portfolio. Sonia Cheng, the daughter of patriarch Henry Cheng, currently serves as CEO of Rosewood, in addition to holding roles as vice chairman and executive director of jewelry chain Chow Tai Fook Jewellery.
Currently, the hotel group operates in 26 markets, with its most recent property opening in Courchevel, France, in December 2025. New developments are also in progress in Saudi Arabia, Seoul, and Shanghai. Notably, Rosewood Hong Kong was recognized as the top hotel by The World's 50 Best Hotels in 2025.
Like many luxury hotel companies, Rosewood is contending for a limited pool of skilled hospitality workers, which has become especially competitive in Asia following a post-pandemic travel resurgence. One challenge in attracting talent is the perception of the hospitality industry as less prestigious compared to other sectors.
"Prospective employees are less focused on brand prestige or the opportunities available," Lung elaborates. "Instead, they are evaluating whether their values align with those of the organization and the overarching purpose of the company." Lung himself has moved on from organizations that failed to provide satisfactory answers to these crucial questions.
The application of Rosewood's parental leave policy across all markets has presented "a lot of complexity," according to Lung. "Navigating various jurisdictions with diverging statutory requirements regarding payment frameworks, eligibility, and the legal recognition of parenthood poses significant challenges," he explained. "Cultural nuances tied to gender roles concerning parental responsibilities also play a critical role, even when not explicitly prescribed by law."
Despite the advantages of generous leave policies, they are often underutilized, particularly by male employees, when workplace cultures subtly discourage taking such benefits.
"When leave policies focus predominantly on maternity leave, which many statutory frameworks do, they inadvertently impose an undue burden on women," Lung notes. "By adopting a gender-neutral approach, we are conveying that mothers, fathers, and non-birthing partners receive equal treatment, thus alleviating the stigma associated with taking leave."
However, Rosewood does not obligate parents to take time off. "While we do not mandate leave, we ensure the option is available," Lung clarifies. The company plans to monitor return-to-work rates, engagement survey outcomes, and career advancement among parents to assess the real-world impact of this policy.
Moreover, Rosewood has established employee resource groups, including one specifically for parents and caregivers, to facilitate reintegration for employees returning from leave. "We collaborate with leadership to dispel the notion that caregiving responsibilities detract from one's career," Lung concludes.
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