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10 May, 2019

World’s most valuable hotel brand revealed (and it’s not the one you’d expect)

Independent branded business valuation consultancy Brand Finance has released its annual report on the most valuable hotel brands in the world, revealing several movements in the top bracket this year.

According to its Brand Finance Hotels 50 for 2019, Hilton – which also happens to be celebrating its centennial this year – is the most valuable hotel brand in the world.

Hilton’s growth in individual hotel brand value (up 17 per cent to $10.5 billion) and 40 per cent growth overall for its portfolio (combined $29 billion) has made it the most valuable hotel brand in the world, with six brands in the top 50 rankings.

Hilton overtook Marriott, who experienced a drop in individual hotel brand value (down 7.8 per cent to $7.1 billion) and a 30.1 per cent drop in its portfolio (combined $18.4 billion).

The three fastest-growing hotel brands in value this year all came from Hilton’s portfolio, and each contributed to the company’s overall growth, according to Brand Finance.

The performance was led by Homewood Suites (brand value up 99 per cent to $1.1 billion), Double Tree (up 79 per cent to $2.9 billion) and Hampton (up 78 per cent to $4.5 billion).

This growth allowed the latter two brands to reshape the ranking’s top 10, with Double Tree jumping from 17th to seventh, and Hampton rising from 10th to fifth place over the past year.

Marriott also suffered a reduction in brand strength, with a drop from AAA- to AA+. However, Brand Finance acknowledged that the hospitality company’s introduction of its own home-rental initiative was a promising move to take back market share from Airbnb, and could contribute to an uplift in brand value in the coming year.

After evaluating marketing investment, stakeholder equity, and business performance, Mercure by Accord remains the strongest brand in the world, significantly improving its Brand Strength Index (BSI) score from 75.7 to 86.2 out of 100 and recording a brand rating upgrade from AA+ to AAA.

Alongside analysing the world’s biggest hotel brands, Brand Finance also ranked the top 10 most valuable brands in the wider leisure and tourism industry.

Royal Caribbean International, who recently opened its first private island, has narrowly retained its position as the world’s most valuable leisure and tourism brand, with its brand value remaining steady at $5.4 billion.

The brand reported strong financial results in 2018, and with demand high in the cruise industry, Royal Caribbean are on course for future growth, according to Brand Finance.

Meanwhile, second-ranked TUI (its brand value up four per cent to $5.2 billion) substantially closed the gap to the ranking’s leader, only just falling short of overtaking Royal Caribbean.

The fast-growing China International Travel (up 70 per cent to $5.2 billion) was up two places from fifth in 2018, valued at third on the Brand Finance Leisure & Tourism 10.

China International saw a significant increase in its valuation due to a surge in forecast revenue in coming years as the Chinese tourism market continues to develop with unprecedented speed and scale.

The fastest-growing brand in the ranking also comes from China. Happy Valley almost doubled its brand value in a single year (up 97 per cent to $2.85 billion).

To view the report in full, click here.

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Accord Brand Finance China International Travel hilton marriott mercure royal caribbean international Tui