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Hilton has extended its lead as the world’s most valuable hotel brand while the total value of its brand portfolio has overtaken Marriott’s, according to the latest report by Brand Finance.
The report from the independent brand valuation consultancy found Hilton’s brand value growth was up 17% to $7.4bn (£5.6bn) was largely driven by strong revenue increase over the last year, cementing the brand’s leadership position in the industry.
Meanwhile, Marriott suffered a reduction in brand value,down 8% to $5bn (£3.8bn) and its brand strength dropped from AAA- to AA+. Brand Finance said Marriott faced several challenges in the North American market from “hacking scandals” to “persistent problems” with its loyalty schemes.
At the same time, the combined value of Marriott’s brands within the Brand Finance Hotels 50 ranking decreased by 30%, giving way to Hilton’s brand portfolio to claim the title of the world’s most valuable.
The combined value of all Hilton brands which made this year’s top 50 ranking amounts to $14.7bn (£11.2bn) – nearly $2bn (£1.5bn) more than Marriott’s $12.9bn (£9.9bn) portfolio. Hilton Worldwide Holdings achieved overall brand value growth of 41%, a stark contrast compared with the Marriott International brand portfolio decreasing by 30%.
Brand Finance revealed Hilton’s brand value in the top 50 ranking is concentrated across six brands, up from five in 2018.
The Hilton and Marriott portfolios remain well ahead of third-ranked Wyndham, which suffered a drop of 8% in brand value to $7.3bn (£5.6bn).
Savio D’Souza, valuation director at Brand Finance said: “Hilton’s strategic approach to brand growth has allowed it to extend its lead as the world’s most valuable hotel brand. At the same time, endorsement from the flagship brand has rendered benefits across the portfolio as Homewood Suites, Double Tree, and Hampton have seen their brand values sore. In its centennial year, Hilton is well-positioned for another hundred years of success.”
