Hotels

REVEALED: The world’s most valuable hotel brands

As holidays are cancelled and people are instructed to work from home, 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 dropped 33 per cent to US$47.4 billion ($62.7 billion) in 2021, according to the Brand Finance Hotels 50 2021 report.

“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,” said Savio D’Souza, valuation director at Brand Finance.

“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.”

Hilton retains top spot

Hilton once again is the world’s most valuable hotel brand, despite recording a 30 per cent drop in brand value to US$7.6 billion ($10.1 billion).

While Hilton’s revenue has taken a significant hit since the outbreak of the COVID-19 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 eight per cent 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 ($18.2 billion).

Marriott – down 60 per cent to US$2.4 billion ($3.2 billion) – has dropped down to fifth spot from second in 2021, after losing more than half of its brand value.

Last year, the brand’s worldwide revenue available per room was down 60 per cent from 2019, and global occupancy was just 36 per cent for the year.

Hyatt checks into second place

Bucking the sector trend as one of only two brands in the ranking to record brand value growth is Hyatt – up four per cent to US$4.7 billion ($6.2 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 per cent growth of existing hotel rooms in the future.

Taj is sector’s strongest

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 (with a brand value of US$296 million/$391.2 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.

The luxury hotel chain scored very well in Brand Finance’s Global Brand Equity Monitor for consideration, familiarity, recommendation and reputation, especially across its home market of India.

Taj’s implementation of its five-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, contributed to the brand’s re-entrance into the ranking for the first time since 2016 in 38th spot.

You can check out the Brand Finance Hotels 50 2021 report in full here.


Featured image source: iStock/LPETTET


SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Destinations

Qld closes border to NSW, WA reinstates hard border with SA, trans-Tasman bubble suspended, and Victoria calls for “ring of steel” around Sydney

Yes, we got a bit carried away with the headline, but there has been A LOT going in in the last 24 hours that you all should be fully aware of.

Share

CommentComments

Cruise

Carnival Cruise Line’s longstanding Aussie VP exits, replacement named

Carnival’s Jennifer Vandekreeke has hailed herself a water taxi and headed back to shore. We’re going to assume the fare was pretty expensive.

Share

CommentComments

Hotels

The Star pulls Crown merger proposal over Royal Commission “issues”

by Huntley Mitchell

The future of James Packer’s casino empire is looking bleaker by the minute, with The Star no longer interested in teaming up.

Share

CommentComments

Tourism

New data reveals the COVID jab that will get you the most stamps on your vaccine passport

When it comes to international travel, it’s becoming clear that not all COVID-19 vaccines are created equal. However, this new data might just surprise you.

Share

CommentComments

Aviation

Domestic border restrictions force Rex to cut capacity

And, to make matters even more complicated, the airline is expecting a couple more aircraft to join its domestic fleet very soon.

Share

CommentComments

Technology

“Michelin Guide” of home sharing knocks back 97 per cent of hosts who apply

The homes listed on this new Airbnb competitor’s website are far more attractive than most people we know. Then again, we’ve not been getting out much lately.

Share

CommentComments

Cruise

Almost 75pc of Carnival’s fleet to be operational by end of 2021

The world’s largest cruise company is gradually getting some meat back on its bones, but it won’t quite have that pre-pandemic girth by the end of the year.

Share

CommentComments

Travel Agents

Helloworld agent wins appeal over COVID-19 refund worth over $9,000

by Ali Coulton

With a little help from her friends at AFTA, this agent managed to score a landmark win for the travel trade.

Share

CommentComments

Aviation

AirlineRatings.com reveals the world’s best airline for 2021

Aussie airlines fared well in this year’s awards, but the accolade of top dog (or in this instance, top bird) went to an overseas carrier.

Share

CommentComments

Destinations

Travel industry reacts to Brisbane’s 2032 Olympics win

While Queensland’s capital was a shoo-in to snare the Games for 2032, it was still a bloody nice bit of news for Aussies to wake up to this morning.

Share

CommentComments

Hotels

Marriott makes “all-important” senior appointment

Sean Hunt has donned the overalls to install a vital new cog in Marriott’s revenue machine. Metaphorically speaking, of course.

Share

CommentComments

Wholesalers

Globus and Cosmos break sales record with release of 2022 local trips

Get in quick, folks! One trip had already sold half of its departures within two days of its release!

Share

CommentComments