June 28 - The three Spanish brands present in the ranking: NH Hotels, Meliá and Grupo Barceló are better resisting the Covid-19 crisis. In one of the worst years in history for the hotel sector, Spain is the nation that loses the lowest brand value in its contribution to brand value to the Hotels 2021 ranking of Brand Finance , the leading independent intangibles valuation consultancy whose rankings meet with the ISO 10668 and ISO 20671 of brand valuation and evaluation respectively and that contributes with its brand value database to create one of the indicators of the UN Global Innovation Index (GII). With a value of 6.5 billion euros, Hilton it remains in the first position of the ranking for the fourth consecutive year.

 

The representation of Spain in the international sector ranking of Hotels increases in 2021 despite the complications that the sector has experienced in 2020 with the Covid-19 pandemic. The Barceló Group joined the existing NH Hotels and Meliá , present since 2016, in 2021. Between the results of NH Hotels and Meliá and this new addition, Spain’s contribution to the total value of the ranking only decreased by -2% compared to to 2020 against losses of -37% in the United States, -39% in the United Kingdom or -66% in France for example.

 

Teresa de Lemus, Managing Director of Brand Finance Spain: “Analyzing the ranking we see that the brands in the hotel sector that have withstood the Covid-19 better was because they had a strength greater than 70 points. 4 of the 8 brands that have left the ranking this year had in 2019 and 2020 less than 72 BSI points (Ibis Styles, Ibis Budget, St. Regis and Howard Johnson)."

 

With a value of 1.3 billion euros (-2% less than 2020), Spain is the fifth nation that contributes the highest brand value to the international ranking of hotels in 2021 thanks to the sum of the value of its three brands. Ahead is the United States (with 31 brands totaling € 30.1 billion, -37%) far behind the United Kingdom (4 brands totaling € 2.8 billion, -39%), China with only one brand, Shangri-La, contributes € 1.7 billion (-24%) and France that with 4 brands also adds an accumulated value of € 1.7 billion, -66% less than last year, the highest fall of the nations that contribute the highest brand value to the ranking.

 

In 18th place Brand Finance find the most valuable Spanish hotel brand, NH Hotels. Despite its efforts to cope with the pandemic, its brand value falls 14.7% compared to last year. NH Hotel Group achieved total revenues of € 539.7 million in 2020 compared to the € 1,718.3 million obtained in 2019, which represents a decrease of 68.6%. Thanks to the effort made in its contingency plan focused on preserving cash and controlling expenses, it has been able to partially mitigate the impact, closing 2020 with recurring net losses of 371 million euros.

 

Located in position 44 in the ranking, Meliá falls by -65% in brand value compared to 2020 but the strength of the brand makes it rise 2 points in brand strength. The Meliá Hotels International establishments 100% comply with the anti-COVID standards and measures included in its “Stay Safe with Meliá” program, as recently certified by Bureau Veritas, which has had a positive reputational impact for the chain, as a result of customer satisfaction in this new stage . Among the most valued aspects are the service and attention of the employees, cleanliness, compliance with the new security measures and, at the same time, the hotel’s ability to safeguard the customer experience in all its facets: room, gastronomic proposal and complementary offer.

 

Despite the acceleration of vaccination and the first glimpses of recovery in tourist flows, the outlook is bleak. Barceló recorded losses of 137 million euros in 2020 and a negative recurring ebitda of 49.6 million euros. While waiting for demand to reactivate, the hotel company plans to open 13 hotels this year, of which 5 will be in Spain.

 

Teresa de Lemus, Managing Director of Brand Finance Spain: “The hotel sector will go through a concentration similar to the one we have experienced in the banking sector in the coming years. The strongest and most valuable brands will be able to better face this new stage."

 

Brand Strength Ranking

 

Meliá and NH Hotels the third and fourth strongest brand in the world

In addition to measuring overall brand equity, Brand Finance also assesses the relative strength of brands, based on factors such as marketing investment, customer perceptions, employee satisfaction, and corporate reputation. Along with revenue forecasts, brand strength is a crucial factor in brand equity.

 

Brand Finance establishes the Strength of the Brand, according to three pillars: “Income”, activities that support the future strength of the brand; “Brand equity”, actual current insights from their market research and other data provider partners; “Result or Impact” means business outcome measures related to the brand, such as market share.

 

Meliá and NH Hotels are among the top 10 of the strongest hotel brands in the world. In third position, behind Taj and Premier Inn , the Spanish Meliá is placed on the podium of the strongest hotel brands in the world. Despite experiencing one of the largest drops in brand value (-65%), its strength increased by +2 points, which is already 82.9 out of 100, which makes it climb 7 places in the Brand Strength ranking.

 

NH Hotels, for its part, rises one place in the ranking of Fortaleza, although its strength slightly decreases -2 points, which is still excellent (82 out of 100) and maintains the AAA rating, which it already had in 2020.

 

 

Taj is the strongest hotel brand in the sector

According to these criteria, Taj (€ 252 million brand value) is the strongest hotel brand in the world, with a Brand Strength Index (BSI) score of 89.3 out of 100 and a rating of AAA brand strength.

 

Renowned for world-class customer service, the luxury hotel chain scores highly on their Global Brand Equity Monitor for thoughtfulness, familiarity, recommendation, and reputation, especially in its local Indian market.

 

The successful implementation of its 5-year strategic plan, which focuses on selling non-core assets, decreasing ownership and reducing dependence on luxury space, followed by the rapid adoption of its new RESET 2020 strategy, which provides a transformative framework to help the brand overcome the challenge of the pandemic, has contributed to the brand’s reentry in the ranking, since its exit in 2016, at 37th place.

 

Covid-19 puts the sector in check

The tourism sector, especially hotel brands, have suffered a tough 2020 as a result of the impact, one of the highest, of the pandemic in 2020. As reservations for vacations were canceled and the teleworking model was established, the The hotel sector came to a near complete halt from both tourism and corporate travel. As a result, the total value of the world's 50 most valuable hotel brands has decreased by 36% year-on-year, from € 63.4 billion in 2020 to € 40.3 billion in 2021, according to the latest report from Brand Finance Hotels 50 2021, € 23,072 million less.

 

Teresa de Lemus, Managing Director of Brand Finance Spain , commented:

“Despite the forced stoppage of the hotel sector in 2020 and the loss of brand value of the most valuable firms, the sector is resilient. As the world begins to open up again, we are already witnessing a strong improvement in bookings and occupancy levels across the board, showing the strength of the brands. "

 

Tourism plays a fundamental role in the economy of Spain, which, in recent years, has become one of the most important tourist destinations in the world, something in which the hotel sector and their major brands have had a lot to do with it. Most international tourists in Spain stay in hotel establishments, so the increase in the number of companies in the hotel and similar accommodation sector (motels, hostels and pensions) before the outbreak of the coronavirus increased considerably. In January 2020, there were around 12,600 companies with more than 17,000 establishments registered throughout the national territory.

 

COVID-19 has hit hotels so hard in 2020 that they have been on the verge of KO: overnight stays decreased by 73.3%, occupancy barely reached 33.7%, the average daily rate (ADR) fell by 21% and the income per available room (RevPAR), 68% according to the National Institute of Statistics (INE). With banks reluctant to offer financing and with a season not very clear, to continue in the race, the way out for many hotel entrepreneurs will be to sell assets. In parallel, investment funds are lurking, waiting for lower prices and strategic locations. The first movements have already been seen with the sale of Senator Playaballena, Iberostar Selection Santa Eulària and Riu Hotels & Resorts has put up for sale the Riu Paraíso Lanzarote Resort, the Riu Palace Madeira in Portugal and the Riu Plaza Panama.

 

The World Tourism Organization foresees that the great moment of the recovery of global tourism will arrive during the third quarter of 2021, that is, now in summer. Spaniards, eager for sun and beach and the relaxation of mask restrictions in open spaces will fuel stocks in the coming months.

 

One of the iconic brands, Paradores de Turismo, plans to start the recovery in the second half of the year: It estimates a turnover of more than 180 million and to open 4 new establishments. They managed to overcome 2020 thanks to national tourism but with the opening of borders they hope to recover the loyal international customer, a historical focus of the brand.

 

Comparison with the Brand Finance Ranking Spain 100 2021

Hilton is, once again, the world's most valuable hotel brand, despite registering a -33.8% drop in brand value to € 6.5 billion. While Hilton's revenues have had a significant impact since the outbreak of the pandemic, the brand shows confidence in its growth strategy, announcing the opening of 17,400 new rooms, bringing the total to more than 400,000, representing an increase. 8% compared to the previous year. Hilton also has the most valuable hotel portfolio, with the group's seven brands featured in the ranking achieving a total brand value of close to € 12.0 billion.

 

Hilton’s rival Marriott (down -62.3% to € 2.0bn) has slipped from second to fifth after losing more than half its brand value. Last year, the brand’s global revenue per available room was down 60% from 2019 and global occupancy was just 36% for the year.

 

Hyatt ranks second

Sailing against the current, Hyatt ranks second with a slight drop of -2.3% with a brand value of € 4.0 billion. Although the pandemic greatly impacted its financial result, Hyatt's net room growth has been strong: it has opened 72 hotels and entered 27 new markets. Additionally, the brand has continued to execute new hires to maintain its portfolio, which represents a growth of more than 40% from existing hotel rooms going forward.

 

 

Brand Finance Leisure & Tourism Report 10 2021

In addition to analyzing the world's most valuable hotel brands, Brand Finance also analyzes and ranks the 10 most valuable brands in the leisure and tourism industry. This year, the total value of the top 10 most valuable leisure and tourism brands in the world has decreased by -44%.

 

Even though booking.com posted a brand value loss of -23.5% to € 7.0 billion, it has outperformed Airbnb (-69.2% to € 2.9 billion) and ctrip.com (-41.9% to € 3.0 billion) becoming the most valuable leisure and tourism brand in the world. The brand that has fallen the most in brand value in the sector has been Airbnb which reduced a quarter of its workforce last year and was forced to reduce the new initiatives it had in the works, including resorts and luxury flights.

 

Happy Valley (down -40.6% at € 1.0 million) is the strongest brand in the industry, with a score of 84.1 out of 100 and a AAA brand strength rating.

 

Three new entries in the ranking

There are three new entries in the ranking this year, AMC Theaters (€ 1.5 billion brand value) in 7th place, Priceline (€ 1.3 billion brand value) in 8th, and Shenzhen Overseas Chinese Town ( € 1.1 billion brand value) in ninth.

 

The world’s largest cinema chain, AMC , has struggled hard as cinemas were closed around the world. The brand will hope its fortunes change as customers regain confidence and begin to slowly return to the big screen.

 

The three new brands have left three major cruise brands out of the ranking: Royal Caribbean International, Norwegian Cruise and Carnival Cruise Lines.

 

 

No Spanish in the leisure and tourism ranking

Although there is no Spanish brand in the Brand Finance Leisure & Tourism 2021 ranking, in the country there are major brands in the sector such as Codere, Opodo, eDreams, Travellink and Liligo, among others. They would be included if the ranking were expanded to 100 brands instead of 10.

 

Access the full Brand Finance Hotels 50 2021 report here
Access the complete Brand Finance Leisure and Tourism 10 2021 ranking here

 

 

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