LONDON - Independent brand valuation consultancy Brand Finance has indicated that 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.
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.
Brand Finance believes the brands that will be less impacted will be properties with strong brands where
social distancing protocols will be easier, such as resorts and extended stay properties.
“Unsurprisingly, brands with a larger exposure to primary markets will be impacted more than secondary and tertiary markets as customers move their
preference to properties within “drive-to” markets,” Brand Finance director, Savio D’Souza, noted in the company’s Hotels 50 20202 report.
Brand Finance said 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 one million overnight stays to frontline
medical workers across the US”.
“As global lockdown restrictions begin to be reviewed, the brand’s gestures of goodwill are likely to pay off, protecting its future revenues and reinforcing Hilton’s already solid reputation,” Brand Finance
Main points form the Brand Finance report:
- Hilton remains world’s most valuable hotel brand, up an impressive 35% growth in brand value
- Mercure is fastest growing brand in ranking, following staggering
- Premier Inn claims title of world’s strongest hotel brand.
- Leisure & Tourism sector also heavily impacted, brands could lose up to 20% of cumulative brand value
- Airbnb most valuable leisure & tourism brand, brand value
Read the full report here: https://brandfinance.com/news/press-releases/worlds-top-50-most-valuable-hotel-brands-could-lose-us14-billion-of-brand-value-from-covid-19/