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Hilton portfolio overtakes Marriott in brand value; Marriott declines 30% from 2018

Hilton portfolio overtakes Marriott in brand value; Marriott declines 30% from 2018

Old May 10, 19, 9:55 am
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Hilton portfolio overtakes Marriott in brand value; Marriott declines 30% from 2018

I work in the travel industry and this just came across in a GBTA bulletin...

"Hilton remains world’s most valuable individual hotel brand with 17% growth, Marriott’s portfolio drops to second place as the value of its brands in the Brand Finance Hotels 50 ranking decreases by 30%, giving way to Hilton."

Article below:

https://www.4hoteliers.com/news/story/19316
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Old May 10, 19, 10:04 am
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Some interesting quotes:

Meanwhile, Marriott suffered a reduction in brand value (down 8% to US$5.0 billion) and its brand strength dropped from AAA- to AA+. Marriott has faced several challenges in the North American market from hacking scandals to persistent problems with its loyalty schemes. At the same time, the combined value of Marriott’s brands within the Brand Finance Hotels 50 ranking decreased by 30%, giving way to Hilton’s brand portfolio to claim the title of the world’s most valuable.
And:
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.
I have no idea how credible this source is, but obviously these comments will resonate here.
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Old May 10, 19, 10:41 am
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This is like ratings of airlines--but not airline routes. An airline brand can be rated wonderfully or poorly, but that doesn't mean the superior Asian airline brand is available for me to fly from LAX to Europe or Africa or South America. That also doesn't mean that the equipment I fly from LAX to some location in Asia is actually as superior as the airline brand otherwise suggests. It means much less than it wants to suggest.

I don't ever stay at a hotel brand; I always stay at hotels. I've never stayed at a Residence Inn, but I certainly could care less if those who do seek the Hilton alternative. The Sheratons and Westins at which I stay are good for the most part (but looking at you, Sheraton Times Square, cause you are terrible) and have few alternatives in the Hilton or other big chain portfolios in most locations I frequent--so their brand characterizations have no impact whatsoever on my choices.

Another ranking for the sheep who can't think for themselves.
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Old May 10, 19, 10:45 am
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I think maybe part of the issue is Marriott has to many brands and not enough idea of how to position them! Their marketing is pretty basic and its to crowded and they blur the lines! Lounges at some Sheraton / Marriott's not them all, some open all the time others shut weekends, a degree is needed to know if Elites get breakfast at which properties and what will that breakfast consist of.

W has survived a bit better than I thought but even that I feel is loosing momentum a but as so many people who understood the brand have left since the merger, St. Regis I feel is getting even less luxurious as it appears also!

To me the biggest problem is Marriott's insistance that all brands work within the Marriott website, they have lost identity and are continuing to do so all becoming more Marriott, which is great if people like Marriott but then if somone has a bad experience at say Sheraton they will ignore St. Regis as well!

The took on a unbelievable number of brands to allow them to operate hotels close to each other and because its hard to negotiate with owners to spend money changing brands, yet at the same time decided a great cost saving of the merger was to cut the marketing department!
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Old May 10, 19, 10:53 am
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The website article is based on "the latest report by Brand Finance, the world’s leading independent brand valuation consultancy."

In other words, the article is not based on objective numbers, such a market cap, P&L, or assets.

From my standpoint as a hotel guest, it means nothing. If I were running a hotel company building a portfolio of hotels, perhaps I would I would find value in what Brand Finance does. There must be companies that are willing to pay for the services and reports of an "independent brand valuation consultancy," which gives it some legitimacy.
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Last edited by Horace; May 10, 19 at 4:04 pm
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Old May 10, 19, 10:55 am
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Originally Posted by Horace View Post
From my standpoint as a hotel guest, it means nothing. If I were running a hotel company building a portfolio of hotels, perhaps I would I would find value in what Brand Finance does. There must be companies that are willing be to pay for the services and reports on an "independent brand valuation consultancy," which gives some legitimacy.
I suspect the most relevant question is whether the analysts pay any attention to these "studies." If there's an impact on stock price, it will matter to Marriott.
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Old May 10, 19, 2:40 pm
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Originally Posted by Horace View Post
The website article is based on "the latest report by Brand Finance, the world’s leading independent brand valuation consultancy."

In other words, the article is not based on objective numbers, such a market cap, P&L, or assets.

From my standpoint as a hotel guest, it means nothing. If I were running a hotel company building a portfolio of hotels, perhaps I would I would find value in what Brand Finance does. There must be companies that are willing be to pay for the services and reports on an "independent brand valuation consultancy," which gives some legitimacy.
Originally Posted by Kacee View Post
I suspect the most relevant question is whether the analysts pay any attention to these "studies." If there's an impact on stock price, it will matter to Marriott.
Exactly, they don't pay any attention!

They look at analytics and data. in general, notwithstanding complaints on FT, Marriott is exceeding Hilton on most metrics.
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Old May 10, 19, 4:00 pm
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Brand is a longer term metric than past quarter profits and is also forward looking. One can be sure Marriott’s marketing team does indeed pay attention to their brand, but I don’t think they have either the political strength or the capability of the old SPG organisation. Time will tell!
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Old May 10, 19, 4:47 pm
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Marriott’s revenue missed and there are 100 lawsuits regarding the data breach. *popcorn*
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Old May 10, 19, 4:56 pm
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But the parking lots are so full
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Old May 10, 19, 5:10 pm
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Originally Posted by bhrubin View Post
Another ranking for the sheep who can't think for themselves.
Context matters. This is an article on a hospitality industry website. Nowhere in the article did it purport to be a ranking scheme meant to influence hotel guests. In olden (aka pre-internet), this type of article would only be seen by people in the industry because it would have been in a magazine only sent to hoteliers and people in connected businesses.

Using your metaphor, the sheep would be the hotel owners. Owners should certainly care about the relative strength of their brand(s).
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Old May 10, 19, 7:59 pm
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Kind of odd to see Mercure as their pick for industry-leading brand. My impression of it is that it's Accor's dumping ground for properties in locations that want but that don't particularly conform to another Accor brand standard- it may be anything from a cinder block box in a commerce park to a nice urban offering with good restaurant to a country manor lodge to a somewhat crumbly ski chalet. So pretty much a Doubletree without the cookie-bakers.
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