The total value of Hilton's brand portfolio has overtaken Marriott's, extending its lead as the world's most valuable hotel brand.
That is according to the Brand Finance Hotels 50 ranking. Hilton's brand value growth, up 17% to $7.4b (£5.7b), was largely driven by strong revenue increase over the last year, cementing its position.
Meanwhile, Marriott suffered a reduction in brand value, down 8% to $5b (£3.8b) and its brand strength dropped from AAA- to AA+. Marriott has faced several challenges including a hacking scandal. The combined value of Marriott's brands within the Brand Finance Hotels 50 ranking decreased by 30%.
Savio D'Souza, valuation director at Brand Finance, said: "Hilton's strategic approach to brand growth has allowed it to extend its lead as the world's most valuable hotel brand. At the same time, endorsement from the flagship brand has rendered benefits across the portfolio as Homewood Suites, DoubleTree, and Hampton have seen their brand values soar. In its centennial year, Hilton is well-positioned for another hundred years of success."
Hilton's brand value in the top 50 ranking is concentrated across six brands, up from five in 2018, each recording solid growth this year and its "relentless" expansion programme "shows no signs of slowing down in the coming year".
Marriott has not fared so well, with four of its brands dropping out of the Brand Finance Hotel 50 ranking this year. With one new entrant, Marriott now has 12 brands in the ranking, many of which have nevertheless decreased in value. Marriott's recent announcement of entering the home rental market however, "is a promising move to take back market share from Airbnb and could contribute to an uplift in brand value in the coming year".
The three hotel brands to grow the fastest in value this year all come from Hilton's portfolio, led by Homewood Suites with a brand value up 99% to $800m (£614.8m), followed closely by DoubleTree, up 79% to $2.1b (£1.6b) and Hampton, up 78% to $3.2b (£2.5b). This growth allowed the latter two brands to reshape the ranking's top 10, with DoubleTree jumping from 17th to 7th and Hampton rising from 10th to 5th place over the past year.
At the same time, the three fastest-falling brands this year (Westin - down 46%, Residence Inn - down 46%, and Sheraton - down 44%), and altogether 7 out of the bottom 10 worst-performing brands, are part of the Marriott portfolio, dragging its combined value down.
According to Brand Finance market research, Accor's Mercure brand is the world's strongest hotel brand, significantly improving its Brand Strength Index (BSI) score from 75.7 to 86.2 out of 100 and recording a brand rating upgrade from AA+ to AAA.