World’s top 50 valuable hotel brands could lose up to $14 billion of brand value
Hotels sector heavily impacted?by COVID-19 pandemic, brands could lose up to 20% of cumulative brand value, equating to US$14 billion.
* Hilton remains world’s most valuable hotel brand, up an impressive 35%
* Mercure is fastest growing brand in?Brand Finance Hotels 50 2020 ranking, following staggering 57% growth
* Premier Inn claims title of world’s strongest hotel brand, Brand Strength Index (BSI) score 89.1/100
* Leisure & Tourism sector also heavily impacted, brands could lose up to 20% of cumulative brand value
* Airbnb most valuable leisure & tourism brand, brand value US$10.5 billion
US has 32 brands on the list and China has 3 brands
Top 50 hotel brands could lose US$14bn from COVID-19
The world’s top 50 most valuable hotel brands could lose up to US$14 billion worth of brand value as a result of the COVID-19 pandemic, according to the?latest Brand Finance Hotels 50 2020 report.?Brand Finance’s analysis shows that the hotels sector is one of the most heavily impacted industries globally and could face a potential 20% loss in brand value.
COVID-19 is undoubtedly going to wreak havoc on the sector in the coming year – both financially, as hotels are forced to close and bookings are cancelled, and reputationally, as brands that do not manage to avoid association with COVID-19 may suffer lasting reputational damage.
Looking beyond the hotels sector, the value of the 500 most valuable brands in the world, ranked in the?Brand Finance Global 500 2020?league table, could fall by an estimated?US$1 trillion as a result of the Coronavirus outbreak.
Brand Finance has assessed the impact of COVID-19 based on the effect of the outbreak on enterprise value, compared to what it was on 1st?January 2020.?
Hilton remains most valuable
Hilton?has recorded an impressive 35% growth in brand value to US$10.8 billion, holding on to first place in the?Brand Finance Hotels 50 2020 ranking. The brand’s year-on-year success is due to strong revenue growth and a solid reputation, making Hilton a firm-favourite amongst holiday-goers around the world.
While Hilton’s revenue will take a hit following COVID-19, the brand is consistently elevating its reputation during the crisis, lighting up its buildings in support of the NHS in London, donating free parking spots to healthcare professionals, and teaming up with American Express to donate 1 million overnight stays to frontline medical workers across the US.?
Mercure is fastest growing, up impressive 57%
With a brand value growth of 57% to US$2.3 billion,?Mercure?is the fastest growing brand in the?Brand Finance Hotels 50 2020 ranking, jumping 3 spots to 8th?position. Accor group has been focusing on strong organic franchise growth across its portfolio with Mercure picked as one of the key brands to deliver this growth. This shift to franchise-based growth has fuelled the brand value growth versus last year.
Accor’s portfolio of brands are likely to benefit from an improved reputation from its rapid and employee-centred response to the Coronavirus crisis, which saw the parent company establish the ALL Heartist Fund to distribute money amongst employees and partners who have seen their income slashed.
Premier Inn named sector’s strongest
In addition to measuring overall brand value, Brand Finance determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. According to these criteria, Premier Inn?(up 22% to US$1.2 billion) is the world’s strongest hotel brand with a Brand Strength Index (BSI) score of 89.1 out of 100 and a corresponding AAA brand strength rating.
Leisure & Tourism heavily impacted by COVID-19
Alongside analysing the world’s most valuable hotel brands, Brand Finance also ranks the top 10 most valuable brands in the wider leisure and tourism industry. Brand Finance’s analysis shows that leisure and tourism brands could also lose up to 20% of brand value due to COVID-19.
With a brand value of US$10.5 billion,?Airbnb?is the most valuable leisure and tourism brand. Combining technology and leisure, Airbnb has given traditional hotel brands a worthy opponent since its inception, favoured by homeowners as a hassle-free source of extra income, and by frequent travellers for its affordability and sense of adventure. Despite its business operations grinding to a halt, Airbnb is in a relatively good position to recover from the crisis as the economy slowly re-opens, likely to be favoured by holiday-goers looking for “staycation” options in their own countries.
Source:?ChinaTravelNews
