Worldwide: According to the latest Brand Finance Hotels 50 2021 report, the total value of the world’s top 50 hotel brands has declined by 33 per cent.
Every year, Brand Finance evaluates 5,000 of the largest brands and publishes reports across all sectors and countries.
In the Brand Finance Hotels 50 2021 report, the 33 per cent drop in brand value is equivalent to US$22.8 billion – down from $70.2 billion in 2020 to $47.4 billion in 2021.
Hilton, despite recording a 30 per cent drop in brand value to $7.6 billion, has retained the top spot. The group’s pipeline will see an uplift of eight per cent on the previous year, bringing the total to over 400,000 new rooms planned.
In terms of brand value, Hilton (which features seven brands in the report) also ranks first with a total brand value of $13.8 billion.
Marriott has moved from second place to fifth after losing more than half of its brand value in 2020, down 60 per cent to $2.4 billion. The brand’s worldwide RevPAR was down 60 per cent from 2019, and occupancy 39 per cent for the year.
Hyatt is one of only two brands in the ranking to record brand value growth – up four per cent to $4.7 billion. Its pipeline represents a 40 per cent increase on existing hotel rooms, and the group opened 72 hotels across 27 new markets in 2020.
As the world’s strongest brand, Taj achieved a Brand Strength Index (BSI) score of 89.3/100. This score is based on corporate reputation, customer familiarity, marketing investment and staff satisfaction. The report also shortlisted Taj amongst the top 50 most valuable hotel brands, which sees the group re-enter the ranking for the first time since 2016 in 38th place.
Savio D’Souza, valuation director, Brand Finance, commented: “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.”
Brand Finance also ranks the top 10 most valuable brands in the leisure and tourism industry. Booking.com (valued at $8.3 billion) has overtaken Airbnb ($3.4 billion) and Trip.com ($3.5 billion). The company recorded a 19 per cent decline in value compared to 67 per cent (Airbnb) and 38 per cent (Trip.com).
Happy Valley amusement parks is listed as the sector’s strongest brand with a BSI score of 84.1/100.