The hotel sector could lose up to 20 percent of cumulative brand value, equal to $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 percent 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 United States.
Mercure, an Accor brand, was the fastest-growing brand in ranking, up three positions to No. 8, following 57 percent growth in brand value from last year to $2.3 billion. Seven of the top 10 most valuable hotel brands in the report, and 32 among the top 50, are based in the United States.