Hilton is the world’s most valuable hotel brand, according to a new report from Brand Finance, an independent brand valuation consultancy. The company’s brand value growth—up 17 percent to $7.4 billion—was largely driven by a strong revenue increase over the last year, according to the report. Marriott is the second most valuable hotel brand in the world, although the company’s brand value was down 8 percent to $5 billion in this year’s report.
“Hilton’s strategic approach to brand growth has allowed it to extend its lead as the world’s most valuable hotel brand,” said Savio D’Souza, valuation director at Brand Finance. “At the same time, endorsement from the flagship brand has rendered benefits across the portfolio as Homewood Suites, DoubleTree, and Hampton have seen their brand values sore. In its centennial year, Hilton is well-positioned for another hundred years of success.”
Below are the top 10 hotel brands, according to Brand Finance’s report.
- Holiday Inn
- Hampton Inn by Hilton
- DoubleTree by Hilton
- Courtyard by Marriott
- Wyndham Hotels and Resorts
- Ramada Worldwide
The combined value of all Hilton brands and Marriott brands in this year’s top 50 ranking amounts to $14.7 billion and $12.9 billion, respectively. Wyndham ranked as third highest but saw an 8 percent drop in brand value to $7.3 billion.
The three hotel brands to grow the fastest in value this year all come from Hilton’s portfolio—Homewood Suites’ brand value is up 99 percent to $0.8 billion, followed by DoubleTree (up 79 percent to $2.1 billion) and Hampton (up 78 percent to $3.2 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.
The three fastest-falling brands this year are Westin (down 46 percent), Residence Inn (down 46 percent), and Sheraton (down 44 percent).
Aside from calculating overall brand value, Brand Finance also determined the relative strength of brands through a scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Alongside revenue forecasts, brand strength is a crucial driver of brand value, according to the firm.
According to these criteria and scoring high in Brand Finance market research, Mercure has claimed the title of the world’s strongest hotel brand, significantly improving its Brand Strength Index (BSI) score from 75.7 to 86.2 out of 100. Mercure is also the most valuable brand in Accor’s portfolio, with nearly 800 hotels. The brand has continued to make several acquisitions through its scheme of franchise growth.
The fast-growing China International Travel (up 70 percent to $3.7 billion) has come third this year, up from fifth in 2018. 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 percent to $2 billion).
“The significant growth achieved by Chinese travel brands is powered by the country’s burgeoning middle class as it is increasingly able to travel internationally,” added D’Souza.