World’s Top Hotel Brands Lose Nearly $23 Billion in Brand Value.
Total value of world’s top 50 most valuable hotel brands has declined by 33% (US$22.8 billion) as sector negotiates
fallout from COVID-19 pandemic.
The hospitality sector has reached an almost complete standstill both from tourism, as well as corporate travel. As a result, the total value of the top 50 most valuable hotel brands has decreased 33% year-on-year, down fromUS$70.2
billion in 2020 to US$47.4 billion in 2021. These are the findings of Brand Finance’s “Top 50 most valuable hotel brands” report.
Hilton retains top spot
Hilton once again is the world’s most valuable hotel brands, despite recording a 30% drop in brand value to US$7.6 billion. While Hilton’s revenue has taken a significant hit since the outbreak of the pandemic, the brand is showing confidence in its growth strategy, announcing a further 17,400 rooms to its pipeline, bringing the total to over 400,000 new rooms planned – an uplift of 8% on the previous year. Hilton also boasts the most valuable hotel portfolio, with its seven brands that feature in the ranking reaching a total brand value of US$13.8 billion.
Hilton’s rival, Marriott (down 60% to US$2.4 billion), has dropped down to 5th spot from 2nd, after losing more than half of its brand value. Last year, the brand’s worldwide revenue available per room was down 60% from 2019 and global occupancy was just 36% for the year.
Hyatt checks into 2nd spot
Bucking the sector trend as one of only two brands in the ranking to record brand value growth, is Hyatt (up 4% to US$4.7 billion). Despite the pandemic impacting its performance greatly, Hyatt’s net rooms growth has been strong, opening 72 hotels and entering 27 new markets. Furthermore, the brand has continued to execute new signings to maintain its pipeline, which represent over 40% growth of existing hotel rooms in the future.
“The hotels sector has completely ground to a halt over the previous year, the repercussions of which are demonstrated by the sharp brand value declines for almost all of the top 50 most valuable hotel brands. The sector is a resilient one, however. As the world begins to open back up again, we are already witnessing a strong improvement in bookings and occupancy levels across the board, showcasing the strength of brands despite the turmoil of the last year.” – Savio D’Souza, Valuation Director, Brand Finance.
Top 10 Most Valuable Hotel Brands:
3. Holiday Inn;
6. Shangri-La Hotels;
8. Double Tree by Hilton;
9. Crowne Plaza Hotels & Resorts;
Top 5 Strongest Hotels Brands in 2021:
1. Taj Hotels;
2. Premier Inn;
4. nh hotel group;
In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, customer familiarity, staff satisfaction, and corporate reputation. According to these criteria, Taj Hotels (brand value US$296 million) is the world’s strongest hotel brand, with a Brand Strength Index (BSI) score of 89.3 out of 100 and a corresponding AAA brand strength rating.
Renowned for its world-class customer service, the luxury hotel chain scores very well in our Global Brand Equity Monitor for consideration, familiarity, recommendation, and reputation especially across its home market of India.
Taj’s successful implementation of its 5-year plan – which focuses on selling non-core assets, becoming less ownership driven and reducing dependence on the luxury space – followed by the speedy adoption of its new R.E.S.E.T 2020 strategy, which provides a transformative framework to help the brand overcome the challenge of the pandemic, has contributed to the brand’s re-entrance into the ranking for the first time since 2016 in 38th spot.
“We are excited to announce Taj as the Strongest Hotel Brand in the World. A brand with a century old legacy and a custodian of the revered Indian hospitality has stood resilient in spite of the challenges posed by the ongoing pandemic. Global travelers have relied upon and tested brands in different ways and Taj has emerged on top.” – David Haigh, CEO, Brand Finance.