Hilton has prolonged its lead because the world’s most precious resort model whereas the entire worth of its model portfolio throughout the Model Finance Motels 50 rating has overtaken Marriott’s, in response to the most recent report by Model Finance, the world’s main impartial model valuation consultancy. Hilton’s model worth progress (up 17% to US$7.Four billion) was largely pushed by sturdy income improve over the past yr, cementing the model’s management place within the trade.
In the meantime, Marriott suffered a discount in model worth (down 8% to US$5.Zero billion) and its model power dropped from AAA- to AA+. Marriott has confronted a number of challenges within the North American market from hacking scandals to persistent issues with its loyalty schemes. On the similar time, the mixed worth of Marriott’s manufacturers throughout the Model Finance Motels 50 rating decreased by 30%, giving solution to Hilton’s model portfolio to say the title of the world’s most precious.
Savio D’Souza, Valuation Director at Model Finance, commented:”Hilton’s strategic method to model progress has allowed it to increase its lead because the world’s most precious resort model. On the similar time, endorsement from the flagship model has rendered advantages throughout the portfolio as Homewood Suites, Double Tree, and Hampton have seen their model values sore. In its centennial yr, Hilton is well-positioned for an additional hundred years of success.”

Hilton’s Model Portfolio Overtakes Marriott’s as World’s Most Helpful

Hilton’s model portfolio overtakes Marriott’s
The mixed worth of all Hilton manufacturers which made this yr’s prime 50 rating quantities to US$14.7 billion – practically US$2 billion greater than Marriott’s US$12.9 billion portfolio. Hilton Worldwide Holdings achieved general model worth progress of 41%, a stark distinction with the Marriott Worldwide model portfolio reducing by 30%.
Hilton’s model worth within the prime 50 rating is concentrated throughout six manufacturers, up from 5 in 2018, all strongly leveraging the dear Hilton model identify and every recording stable progress this yr. Hilton has frequently dedicated to its relentless enlargement programme and with 1000’s of latest rooms and resorts within the pipeline, the corporate exhibits no indicators of slowing down within the coming yr.
Marriott has not fared so properly, with 4 of its manufacturers dropping out of the Model Finance Lodge 50 rating this yr. With one new entrant, Marriott now has twelve manufacturers within the rating, lots of which have nonetheless decreased in worth. Marriott’s latest announcement of coming into the home-rental market nevertheless, is a promising transfer to take again market share from Airbnband might contribute to an uplift in model worth within the coming yr.
The Hilton and Marriott portfolios stay properly forward of third-ranked Wyndham, which additionally suffered a drop of 8% in model worth to US$7.Three billion.
Quickest-growing manufacturers
The three resort manufacturers to develop the quickest in worth this yr all come from Hilton’s portfolio, and every contributed to its general progress. Their spectacular efficiency was led by Homewood Suites (model worth up 99% to US$0.Eight billion), adopted carefully by Double Tree (up 79% to US$2.1 billion) and Hampton (up 78% to US$3.2 billion). This progress allowed the latter two manufacturers to reshape the rating’s prime 10, with Double Tree leaping from 17th to seventh and Hampton rising from 10th to fifth place over the previous yr.
On the similar time, the three fastest-falling manufacturers this yr (Westin – down 46%, Residence Inn – down 46%, and Sheraton – down 44%), and altogether 7 out of the underside 10 worst-performing manufacturers, are a part of the Marriott portfolio, dragging its mixed worth down.
Mercure is world’s strongest resort model
Apart from calculating general model worth, Model Finance additionally determines the relative power of manufacturers by means of a balanced scorecard of metrics evaluating advertising and marketing funding, stakeholder fairness, and enterprise efficiency. Alongside income forecasts, model power is an important driver of name worth.
In accordance with these standards and scoring excessive in Model Finance market analysis, Mercure has claimed the title of the world’s strongest resort model, considerably bettering its Model Energy Index (BSI) rating from 75.7 to 86.2 out of 100 and recording a model ranking improve from AA+ to AAA. Mercure can be essentially the most worthwhile model in Accor’s portfolio, with practically 800 resorts. The model has continued to make a number of acquisitions by means of its scheme of franchise progress.
TUI closes in on Royal Caribbean
Alongside analysing the world’s greatest resort manufacturers, Model Finance additionally ranks the highest 10 most precious manufacturers within the wider leisure and tourism trade.
Royal Caribbean Worldwide has narrowly retained its place because the world’s most precious leisure and tourism model, with its model worth remaining regular at US$3.Eight billion. The model reported sturdy monetary ends in 2018, and with demand excessive within the cruise trade, Royal Caribbean are heading in the right direction for future progress.
In the meantime, second-ranked TUI (model worth up 4% to US$3.7 billion) considerably closed the hole to the rating’s chief, solely simply falling wanting overtaking Royal Caribbean.
Chinese language manufacturers surge
The fast-growing China Worldwide Journey (up 70% to US$3.7 billion) has come third this yr, up from fifth in 2018. China Worldwide noticed a major improve in its valuation attributable to a surge in forecast income in coming years because the Chinese language tourism market continues to develop with unprecedented velocity and scale.
The fastest-growing model within the rating additionally comes from China. Joyful Valley nearly doubled its model worth in a single yr (up 97% to US$2.Zero billion).
Savio D’Souza, Valuation Director at Model Finance, commented:”Royal Caribbean Worldwide stays the world’s most precious leisure and tourism model however is being challenged by broader financial modifications. The numerous progress achieved by Chinese language journey manufacturers is powered by the nation’s burgeoning center class as it’s more and more in a position to journey internationally.”

Hilton’s Model Portfolio Overtakes Marriott’s as World’s Most Helpful

View the complete Model Finance Motels 50 2019 report right here
Notice to EditorsEvery yr, main valuation and technique consultancy Model Finance values the world’s greatest manufacturers. The 50 most precious resort manufacturers and the 10 most precious leisure & tourism manufacturers are included within the Model Finance Motels 50 2019 and the Model Finance Leisure & Tourism 10 2019 rankings.
The model portfolio evaluation relies on the Model Finance Motels 50 rating and doesn’t consider much less worthwhile manufacturers which haven’t been included within the rating.
Model worth is known as the web financial profit {that a} model proprietor would obtain by licensing the model within the open market. Model Energy is the efficacy of a model’s efficiency on intangible measures relative to its opponents.
Extra insights, extra details about the methodology, in addition to definitions of key phrases can be found within the Model Finance Motels 50 2019 report.
Model Finance helped craft the internationally recognised normal on Model Valuation – ISO 10668, and the not too long ago permitted normal on Model Analysis – ISO 20671.
Model Finance is a chartered accountancy agency regulated by ICAEW and in addition the primary model valuation consultancy to hitch the Worldwide Valuation Requirements Council (IVSC).
Information compiled for the Model Finance rankings and stories are offered for the good thing about the media and should not for use for any business or technical objective with out written permission from Model Finance.
Methodology
Definition of BrandBrand Finance helped to craft the internationally recognised normal on Model Valuation – ISO 10668. It defines a model as a marketing-related intangible asset together with, however not restricted to, names, phrases, indicators, symbols, logos, and designs, meant to establish items, companies or entities, creating distinctive photographs and associations within the minds of stakeholders, thereby producing financial advantages.
Model StrengthBrand Energy is the efficacy of a model’s efficiency on intangible measures, relative to its opponents. With a view to decide the power of a model, we take a look at Advertising Funding, Stakeholder Fairness, and the affect of these on Enterprise Efficiency.
Every model is assigned a Model Energy Index (BSI) rating out of 100, which feeds into the model worth calculation. Primarily based on the rating, every model is assigned a corresponding ranking as much as AAA+ in a format just like a credit standing.
Model Valuation ApproachBrand Finance calculates the values of the manufacturers in its league tables utilizing the Royalty Aid method – a model valuation technique compliant with the trade requirements set in ISO 10668. It entails estimating the possible future revenues which are attributable to a model by calculating a royalty fee that might be charged for its use, to reach at a ‘model worth’ understood as a web financial profit {that a} model proprietor would obtain by licensing the model within the open market.
The steps on this course of are as follows:
Calculate model power utilizing a balanced scorecard of metrics assessing Advertising Funding, Stakeholder Fairness and Enterprise Efficiency. Model power is expressed as a Model Energy Index (BSI) rating on a scale of Zero to 100.
Decide royalty vary for every trade, reflecting the significance of name to buying choices. In luxurious, the utmost proportion is excessive, in extractive trade, the place items are sometimes commoditised, it’s decrease. That is performed by reviewing comparable licensing agreements sourced from Model Finance’s intensive database.
Calculate royalty fee. The BSI rating is utilized to the royalty vary to reach at a royalty fee. For instance, if the royalty vary in a sector is 0-5% and a model has a BSI rating of 80 out of 100, then an applicable royalty fee for using this model within the given sector can be 4%.
Decide brand-specific revenues by estimating a proportion of mother or father firm revenues attributable to a model.
Decide forecast revenues utilizing a operate of historic revenues, fairness analyst forecasts, and financial progress charges.
Apply the royalty fee to the forecast revenues to derive model revenues.
Model revenues are discounted post-tax to a web current worth which equals the model worth.
ContactFlorina Cormack-LoydCommunications ManagerPhone: +44 (0)2073 899 400Ship Electronic mail

About Model Finance
Model Finance is the world’s main model valuation and technique consultancy, with workplaces in over 20 nations. Model Finance bridges the hole between advertising and marketing and finance by quantifying the monetary worth of manufacturers. Drawing on experience in technique, branding, market analysis, visible identification, finance, tax, and mental property, Model Finance helps model house owners and traders make the best choices to maximise model and enterprise worth.