UPDATE

Hotel BrandsValue. Growth Drivers. Competitiveness

1 2 3

4 5 6

7 8 9

Strong Brands Create Price Premium & Shareholders Value

$1.50 $20

Hotel Brands in the Global 500 brands 2017

Overall• There are only 4 hotel brands on the global 500 most valuable brand

rankings for 2017. Ranked 171 and below.• Hilton has a considerable lead over the # 2 Marriott (over US$ 3 billion) .• Marriott and Hyatt are US$ 1 billion apart.• The global rankings for Hilton and Marriott (the top 2) have dropped

while the other 2 have improved.• Hilton, Marriott and Sheraton are all very strong brands with AAA rating

for the brand strength. There are 170 brands globally rated as AAA (AAA+, AAA or AAA-)

What’s the Brand Finance global 500 rankings all about:

The Brand Finance Global 500 brand rankings are announced in February each year and are the worlds only ISO compliant published brand values.

The rankings are based on the dollar value of the brand and not based on the size and geographical presence.

The higher the brand value, the higher their global rankings.

The global rankings are sector neutral and peg the top 500 brands globally against each other.

Brand Finance also publishes sector specific and country specific brand rankings annually. The brand rankings specific to the hotel industry can be found under the Top 50 Hotel Brands.

The 2017 hotel brands rankings will be published on 20th March 2017.

2017GlobalRank

2016GlobalRank

Brandname

2017BrandValue(USDm)

2017Brand

StrengthIndexScore(/100)

2017BrandRating

2017EnterpriseValue(USDm)

171 162 Hilton 8,370 85 AAA 22,932300 260 LotteGroup 5,438 59 A 30,849332 265 Marriot 5,037 81 AAA- 8,631422 458 Hyatt 4,037 77 AA+ 8,203443 470 Sheraton 3,819 81 AAA- 9,062

2017GlobalRank

2016GlobalRank

Brandname

2017BrandValue(USDm)

2017Brand

StrengthIndexScore(/100)

2017BrandRating

2017EnterpriseValue(USDm)

171 162 Hilton 8,370 85 AAA 22,932300 260 LotteGroup 5,438 59 A 30,849332 265 Marriot 5,037 81 AAA- 8,631422 458 Hyatt 4,037 77 AA+ 8,203443 470 Sheraton 3,819 81 AAA- 9,062

Are you not managing 51% of your business?Category Brands Average

BV:EV

Hotels

51%

LuxuryCars

48%

LuxuryGoods

40%

TechnologyBrands

23%

Banking Brands

22%

AAA-20%

AA+15%

AAA21%

AAA-24%

AA30%

AAA-54%

AA+41%

AAA54%

AAA-37%

AA+31%

AA+40%

AAA-51%

AAA32%

AA+40%

AAA45%

AAA46%

AAA-53%

AA+50%

AAA-26%

AAA74%

AAA52%

AAA-72%

AAA33%

AAA29%

BrandRatingBV/EV

BrandRatingBV/EV

BrandRatingBV/EV

BrandRatingBV/MC

BrandRatingBV/EV

AAA-16%

AAA58%

AAA-49%

AAA-42%

AAA36%

AA+58%

AAA82%

AA+45%

AA75%

AA41%

AAA29%

AAA+27%

AAA26%

AAA39%

AA+30%

AAA-14%

AA19%

AA+14%

AA+17%

AA14%

AA-72%

Source:BrandFinance

AA+25%

AA-25%

AA18%

AAA20%

AA18%

The Rise of Hotel Brand Values

2,660

5,816

7,8198,370

2,903 4,635

5,315 5,037

1,803

2,694

3,4524,037

2014 2015 2016 2017

Hilton

Marriott

Hyatt

AA+

AA+

AAA-AA+

AAA

AAA

AAA-

AAA-

AAA34%

60%

15%

55%

24%

214%

73%

123%

7%

-5%

17%

119%

Brand Values of Portfolio Brands

$8,370m

$2,306m

$1,478m

$926m

$475m

$5,037m

$2,421m

$697m

$551m

$583m

$547m

$3,819m

$1,683m

$1,132m

$318m

$312m

$318m

2005:ContemporaryBoutique

1972:Homeawayfromhome

BrandValuesofLargestHotelPortfolios2017

$5,037m

$3,819m

$2,421m

$1,638m

$1,132m

$697m

$583mOther:$4,047

$8,370m

$2,306m

$1,478m

$926m

$473m

$222m

$202mOther:$335

$1,676m

$1,492m

$1,184m

$818m

$724m

$468m

$440mOther:$1,506

MarriottOtherbrands:Springhillsuites,Ritz,Aloft,Fairfield,JWMarriott,LuxuryCollection,LeMeridien,Element,TownplaceSuites,Rennaisance,W,StRegis,Gaylord,Delta,ACHotels,Protea,Edition,Bulgari ,Moxy .HiltonOtherBrands:Conrad,Home2Suites,Curio(,Other.WyndhamOtherBrands:Wingate),Microtel),Travelodge),KnightsInn

US$19.3B US$14.3B US$8.3B26+brands 11+brands 11brands

Evolution of Hotel Choice Drivers

19thCentury

20thCentury

Year1980s

Year1990s

Year2017+

• Reliable, safe and clean accommodation for travellers

• Hotel reputation, luxurious and prestigious image

• Inventive marketing

• Customer segment focus

• Technology• Environmental-

friendly• Service

• Digital era• Data-centric• Personalised

service • Integrated

Technologies

The future hotelsHotel 1000, Seattle

Aria Resort & Casino, Las Vegas

Scarp Ridge Lodge, Crested Butte, Colorado

Omni Dallas Hotel, Dallas

citizenM Times Square, New York

Yotel New York, New York

2020 - Unprecedented, Irreversible Changes & Challenges

• Digital technologies will shift the balance of power towards the consumer.

• “Millennials’ will form the largest segment of users.• A strong desire for local, ‘authentic’ experiences is fast becoming the

primary consumer need.• Personalisation will be a given: Not a choice anymore• Approach to data : hotels are too slow and not ready for a digital,

data-centric business. • Tech Staff: Hotels will need data scientists, sensor specialists, social

media experts and more.• Technology enabled applications & service benefits : Not just robots

delivering towels.• Brand Visibility and Relevance: OTA’s and online engines are killing

the brand visibility

New Brands or Old

• New expectation, new customer segments and new trends have given rise to new brands.

• Emerging trend of launching new hotel brands worldwide to balance pricing and reputation.

• “Home away from home” no more. • Easier co-existence in an online world as technology levels the

playing field.• New brands for new customers - Millennial travellers

About the Millennials… • Millennials are spontaneous• Millennials are social creatures who like to be in public spaces

most of the time,• Millennials enjoy sharing their experiences• Millennials like genuine. They usually don’t prefer any clichéd

versions of cities or countries that they visit.• Millennials have much higher expectations of amenities they

can enjoy at their hotel.• Millennials like integrated technology• Millennials targeting requires heavy investments

Future value and growth drivers• Hotels will have to get high-tech: Artificial intelligence (AI) & IoT• Hotels will have to get greener: Eco-friendly & sustainable • Hotel will have to get healthier: Wellness vacations• Hotels will have to get innovative: What next? On demand

functionality. Speed of adaptability• Hotels will have to get unpredictable: Experience enhancement

& surprise elements• Hotels will have to get more brand centric: Control brand dilution

and fragmentation. Stand for something big.

Hotels will have to get highly disruptive

Contact us

Brand Finance is the leading brand valuation and strategy firm, helping companies to manage their brands for improved business results.

www.brandfinance.com

Brand Finance Asia Pacific3 Church Street#08-00 Samsung HubSingapore 049483

Samir Dixit Managing Director

Brand Finance Asia PacificE. s.dixit@brandfinance.comT. +65 9069 8651