The hotel sector could lose up to 20 per cent of cumulative
brand value, equal to US$14 billion, due to the coronavirus pandemic, according
to a report released Wednesday by London-based brand valuation consultancy
Brand Finance.
"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," said Brand Finance
valuation director Saviod D'Souza. "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."
Hilton remained the world's most valuable hotel brand in
Brand Finance's Hotels 50 2020 report, up 35 per cent from 2019 to $10.8
billion. The report noted that despite the company's revenue taking a hit this
year, as all hotel companies likely will, Hilton has been "consistently
elevating its reputation during the crisis," donating free parking spots
to health care professionals and teaming up with American Express to donate 1
million overnight stays to frontline medical workers across the US.
Mercure, an Accor brand, was the fastest-growing brand in
ranking, up three positions to number eight, following 57 per cent growth in
brand value from last year to $2.3 billion. Seven of the top ten most valuable
hotel brands in the report, and 32 among the top 50, are based in the US.