Hilton Brand portfolio overtakes the Marriott as the most valuable hotel brand due to the increase in the revenue over the last few years. The Brand Finance Hotels 50 ranking shows that under this ranking, Hilton’s brand portfolio growth is 17% to $7.4 billion. Whereas, Marriott suffers a loss in the brand value of 8% to $5 billion. This is how its brand strength of Marriott has dropped from AAA- to AA+.
Marriott has faced few challenges in the North American market regarding the hacking scandals and loyalty issues. In this way Marriott’s combined value under Brand Finance Hotels 50 ranking as a whole declined by 30%, which gives a way to Hilton portfolio to claim the most valuable brand title.
According to the valuation director of Brand Finance, “Savio D’Souza”, the brand growth approach of Hilton leads it to the most valuable brand of all time. Moreover, the flagship endorsement of the brand made Hampton, Homewood Suites, and DoubleTree the fastest growing hotel brands.
Hilton Brand’s Value in Comparison to Marriott
This year, the total brand value of Hilton which made to the top 50 ranking is around $14.7 billion that is $2 billion more in comparison to the $12.9 billion of Marriott’s portfolio.
The overall brand value that Hilton is holding worldwide is a brand growth of 41%, while Marriott loses its value by a decrease of 30% as an international brand portfolio. The top value of Hilton brand among the 50 ranking spreads across the six brands from five in 2018. This company is planning to build more rooms and hotels too.
In the meantime, Marriott’s four brand value dropped out in the 50 ranking of the Brand Finance Hotel. It is reported by the Brand Finance that Marriott has recently made an announcement to enter into the home-rental market. There is possibility that it will act as a promising way for Marriott to increase its brand value in the future. While, entering into this new business may allow Marriott to take its share back from Airbnb.
However, both largest brands, Hilton and Marriott are still ahead of Wyndham who lost 8% of brand value to $7.3 billion.
While calculating the overall brand value of the hotels, Brand Finance takes into account the brand strength through scorecards metrics to assess stakeholder equity, marketing investment, and business performance.