UK chain is world’s most powerful hotel brand.Scores highly on metrics such as awareness, satisfaction and brand investment.Hilton is the world’s most valuable hotel brand, at US$8.4 billion. Airbnb brand value growing faster than all hotel brands, up 52% to US$3.7 billion
Every year, leading valuation and strategy consultancy Brand Finance values the brands of thousands of the world’s biggest companies. Brands are first evaluated to determine their power / strength (based on factors such as marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation) and given a corresponding letter grade up to AAA+. Brand strength is used to determine what proportion of a business’s revenue is contributed by the brand, which is projected into perpetuity to determine the brand’s value.
The world’s 50 most valuable hotels brands are then ranked and included in the Brand Finance Hotel 50.
The world’s strongest hotel brand is Premier Inn. The mass-market, UK-focussed brand’s top billing may come as a surprise to some, however Premier Inn lives up to its name across a broad range of brand metrics from marketing investment to familiarity and consideration. Luxury brands may be notionally more desirable, but they are not as widely known as Premier Inn. The budget chain’s value for money also supports higher scores for preference and satisfaction. Premier Inn’s financial performance is correspondingly strong, with total sales up 12.9% and like for like sales up 4.2% in their financial year 2015/16, supporting an 11.9% pre-tax profit increase for Whitbread (Premier Inn’s owner).
Whitbread has consistently invested in effective marketing communications. Premier Inn was the first mass market UK hotel brand to be advertised on prime time television following its creation in 2007 and has benefitted from high quality, effective advertising (frequently fronted by comedian Sir Lenny Henry) ever since. As confidence has grown in the strength of the brand, campaigns have become more emotionally-led. Recent ads focus on Premier Inn’s role in helping friends and family keep in touch, including the Wes Anderson inspired ‘Aunt Mabel’s Birthday’.
However the operating environment for many major hotel brands is becoming increasingly challenging particularly due to changing customer demands and technology. The advent of Airbnb has allowed access to a vast range of private accommodation that plays into a growing desire for unique, visually interesting and ‘authentic’ accommodation. Airbnb’s brand value is growing more rapidly than any of the major hotel brands. It increased 52% year on year to reach a total of US$3.7 billion, making it more valuable than all but four of the world’s biggest hotel brands.
In this context, the mixed results of the Brand Finance Hotels 50 may come as little surprise. Five of the top ten most valuable brands have lost value and the industry’s year to year average brand value growth rate (4%) is significantly below the average for all sectors. There are notable exceptions however, with reasons for optimism for several brands including Hilton, the world’s most valuable hotel brand, whose brand value has increased 7% to US$8.4 billion.
Brand values are reported in USD.
Brand Finance is the world’s leading brand valuation and strategy consultancy, with offices in over 15 countries. We provide clarity to marketers, brand owners and investors by quantifying the financial value of brands. Drawing on expertise in strategy, branding, market research, visual identity, finance, tax and intellectual property, Brand Finance helps clients make the right decisions to maximise brand and business value and bridges the gap between marketing and finance.
