Hilton continues its reign as the world’s most valuable hotel brand for the ninth consecutive year
Hilton, with a brand value of USD11.6 billion, maintains its position as the world’s most valuable hotel brand for the ninth consecutive year. Despite a slight decline (down 2%) in brand value, Hilton remains one of only two hotel brands featured in the Brand Finance Global 500 2024 ranking.
Following Hilton, Hyatt (brand value down 1% to USD6.0 million) and Hampton Inn (brand value down 2% to USD4.2 billion) retained their positions as the second and third most valuable hotel brands, respectively. Among the top five, Marriott (brand value up 3% to USD3.1 billion) has overtaken Holiday Inn (brand value down 24% to USD2.9 billion) to secure fourth position.
In the Brand Finance Hotels 2024 ranking, many top hotel brands have struggled to grow their brand value as robustly as in previous post-COVID years. This slowdown comes as brands struggle to hold pace with the initial post-COVID recovery growth. Despite an uptick in travel and hotel demand, the actual growth hasn’t matched expectations, resulting in slight declines or minimal brand value growth for the world’s leading hotel brands.
Henry Farr, Associate Director, Brand Finance
Taj checks back into the competition, becoming the strongest hotel brand globally
With a 45% increase in brand value to USD545 million, Taj has become the world’s strongest hotel brand. Its improved Brand Strength Index (BSI) score of 92.9 out of 100 earned it an AAA+ rating, the highest brand strength rating awarded by Brand Finance. Taj also stands as the world’s second-fastest-growing brand, underscored by supercharged revenue growth and an increase in brand strength. Taj’s BSI score climbed more than three points and performed exceptionally well across various brand strength metrics, such as familiarity, consideration, recommendation, and reputation. This performance underscores Taj’s dominance in the Indian hotel sector and its excellent brand funnel.
Renaissance Hotels (brand value up 6% to USD620 million) and Double Tree (brand value up 5% to USD2.1 billion) have also made significant strides in brand strength. They are now the second and third strongest hotel brands globally. Renaissance Hotels improved nine positions in the brand strength ranking, achieving a BSI of 89.3 out of 100 and an AAA rating. Just behind, Double Tree’s BSI improved by 17 ranks, now at 89.1 out of 100. This BSI improvement is attributed to higher scores in its people metrics, such as customer service and ease of dealing with, as well as perceptions of price or value for money.
Four Points and Millennium Hotels are among the world’s fastest-growing hotel brands
With a 47% increase in brand value to USD364 million, Four Points has become the world’s fastest-growing hotel brand, followed by Taj. Millenium Hotels, a new Singaporean entrant, has emerged as this year’s third fastest-growing brand, with a 39% increase in brand value to USD401 million.
Spain’s hotel brands are boosting their brand values, welcoming two new entrant
Spanish hotel brands are climbing the ranks in this year’s ranking. New entrant Occidental has entered the ranking in 42nd position with a brand value of USD318 million, following a 34% increase, making it the fourth fastest-growing hotel brand this year. Meliá also joins the ranking in 43rd position with a brand value of USD312 million. These additions have doubled the presence of Spanish brands in the ranking, increasing from two to four.
NH Hotels (brand value up 18% to USD770 million) ranked 18th overall, making it Spain’s most valuable hotel brand. This growth is attributed to improved revenues and a strong COVID-19 recovery.
Ranked 21st overall, Barceló noted a 12% increase in brand value to USD683 million. Despite a slight decline in BSI score, Barceló excels in several brand strength metrics, including consideration, recommendation, reputation, and loyalty.
The growth of Spain’s hotel sector is mainly due to the increase in international tourism in the post-COVID era, particularly from neighbouring nations like France and Italy. The appetite for travel is rising, with improved air travel activity across Europe, further bolstering Spanish hotels’ brand values.
Local legend: Scandic Hotels remains a top choice for Scandinavian customers
Despite experiencing a small decline in brand value, Scandic Hotels (down 7% to USD 724 million) remains a leader in its home market, emphasised by its position as Sweden’s strongest brand. Brand Finance’s research shows Scandic Hotels achieved perfect scores for price, familiarity, consideration, and reputation. This performance contributes to Scandic Hotels’ AAA brand strength rating, underscoring its significant footprint in the Scandinavian region and positive perceptions among local customers.
Hilton bears the largest sustainability perceptions value and sustainability gap value of any hotel brand
Brand Finance also utilises its Global Brand Equity Monitor (GBEM) research to compile its Sustainability Perceptions Index. The study determines the role of sustainability in driving consumer choice, which brands consumers believe to be most committed to sustainability, the proportion of brand value attributable to sustainability perceptions, and the value at risk or to be gained, based on the difference between sustainability perceptions and actual performance.
At USD1.1 billion, Hilton has the highest sustainability perceptions value, followed by Hyatt, Hampton Inn, Holiday Inn, and Double Tree. These brands reflect a larger financial scale, and consequently, greater value is attributed to their perceptions of sustainability.
According to Brand Finance research, sustainability plays a significant role in driving customer consideration within the hotel sector, at 9.3%. Smaller brands by brand value, such as Taj, hold the strongest sustainability perceptions. As part of the Tata Group’s Indian Hotels Company Limited, Taj’s perceptions extend from the Group’s established reputation for philanthropy and sustainability. Brand Finance’s perceptual research is analysed alongside CSRHub’s ESG performance data to determine a brand’s ‘gap value’.
This is the value at risk, or value to be gained, arising from the difference between sustainability perceptions and actual performance. Hilton also noted the highest positive gap value among hotel brands at USD69 million. This gap value suggests that Hilton could generate up to USD69 million in additional value through enhanced communication of its impact and accomplishments in sustainability, such as its ‘Travel with Purpose’ approach.
The leisure & tourism sector resurgence continues, with eight out of ten top brands experiencing brand value growth
This year, Brand Finance expanded its leisure and tourism ranking to include the world’s top 25 most valuable and strongest brands in the sector, now reaching an aggregate brand value of USD59.1 billion. Overall, brands within the sector have experienced significant growth attributed to the global uptick in the sector, as customers reprioritise travelling and social activities in the post-pandemic era.
booking.com remains the world’s most valuable leisure and tourism brand, with a brand value of USD10.4 billion. Airbnb (brand value up 23% to USD 6.9 billion) and Trip.com Group (brand value up 31% to USD4.4 billion) maintain second and third positions, respectively.
Royal Caribbean, with a 58% increase in brand value to USD4.1 billion, has climbed to fourth position, also emerging as the past year’s second fastest-growing leisure and tourism brand. Improved revenues primarily drive this growth due to the overall better performance of the cruise ship industry, which is benefiting from pent-up demand. Royal Caribbean also noted a considerable increase in BSI, now at 86.7 out of 100 and achieving an AAA rating, earning the brand second place for brand strength. The brand earned excellent scores for perceived volume and price premium, underscoring Royal Caribbean’s offering of better value for money than land-based options.
New entrant Tokyo Disneyland has made its debut in sixth position with a brand value of USD2.7 billion, emerging as the world’s strongest leisure and tourism brand with an AAA+ rating. Tokyo Disneyland’s brand strength is driven by exceptional scores across several metrics, including products, promotion, and familiarity. The brand also scored highly in the reputation metric, particularly for its positive contribution and being admired, underscoring its position as a leading leisure and tourism brand.