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Premier Inn is World’s Premier Brand

March 27, 2017 Hotel News No Comments Email Email

Every year, leading valuation and strategy consultancy Brand Finance values the brands of thousands of the world’s biggest companies. Brands are first evaluated to determine their power / strength (based on factors such as marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation) and given a corresponding letter grade up to AAA+.http://www.rembrandtbkk.com/ Brand strength is used to determine what proportion of a business’s revenue is contributed by the brand, which is projected into perpetuity to determine the brand’s value. The world’s 50 most valuable hotels brands are then ranked and included in the Brand Finance Hotel 50.

The world’s strongest hotel brand is Premier Inn. The mass-market, UK-focussed brand’s top billing may come as a surprise to some, however Premier Inn lives up to its name across a broad range of brand metrics from marketing investment to familiarity and consideration. Luxury brands may be notionally more desirable, but they are not as widely known as Premier Inn. The budget chain’s value for money also supports higher scores for preference and satisfaction. Premier Inn’s financial performance is correspondingly strong, with total sales up 12.9% and like for like sales up 4.2% in their financial year 2015/16, supporting an 11.9% pre-tax profit increase for Whitbread (Premier Inn’s owner).

Whitbread has consistently invested in effective marketing communications. Premier Inn was the first mass market UK hotel brand to be advertised on prime time television following its creation in 2007 and has benefitted from high quality, effective advertising (frequently fronted by comedian Sir Lenny Henry) ever since. As confidence has grown in the strength of the brand, campaigns have become more emotionally-led. Recent ads focus on Premier Inn’s role in helping friends and family keep in touch, including the Wes Anderson inspired ‘Aunt Mabel’s Birthday’.

However the operating environment for many major hotel brands is becoming increasingly challenging particularly due to changing customer demands and technology. The advent of Airbnb has allowed access to a vast range of private accommodation that plays into a growing desire for unique, visually interesting and ‘authentic’ accommodation. Airbnb’s brand value is growing more rapidly than any of the major hotel brands. It increased 52% year on year to reach a total of US$3.7 billion, making it more valuable than all but four of the world’s biggest hotel brands.

In this context, the mixed results of the Brand Finance Hotels 50 may come as little surprise. Five of the top ten most valuable brands have lost value and the industry’s year to year average brand value growth rate (4%) is significantly below the average for all sectors. There are notable exceptions however, with reasons for optimism for several brands including Hilton, the world’s most valuable hotel brand, whose brand value has increased 7% to US$8.4 billion.

Rank

Brand Value

(USD $ Millions)
Brand rating
2017
2016
Name
Country
2017
2016
2017
2016
1

1 Hilton 8,370 7,819 AAA AAA
2

2 Marriott 5,037 5,315 AAA- AAA
3

3 HYATT 4,037 4,929 AA+ AAA-
4

4 Sheraton 3,819 3,404 AAA- AAA-
5

5 Holiday Inn 3,044 2,950 AAA AA+
6

6 Courtyard 2,421 2,845 AAA- AAA
7

7 Hampton Inn 2,306 2,523 AAA AAA
8

9 Ramada 1,676 1,757 AA+ AA
9

10 SHANGRI-LA ASIA 1,650 1,711 AAA- AAA
10

14 Westin 1,638 1,418 AA+ AA+
11

12 Wyndham 1,492 1,545 AAA- AA+
12

15 DoubleTree 1,478 1,370 AA+ AA+
13

16 InterContinental 1,360 1,310 AA+ AA-
14

17 Crowne Plaza 1,308 1,157 AA+ AA-
15

11 Hotel ibis 1,294 1,643 AAA- AA
16

8 Mercure 1,231 1,795 AA AA+
17

Days Inn 1,184 AAA
18

Regal Hotels 1,172 A
19

18 Premier Inn 1,168 1,089 AAA AAA
20

13 Crown 1,157 978 AA AA-
21

19 Four Points 1,132 907 AA+ AA
22

23 Novotel 929 765 AAA AA
23

20 Embassy Suites Hotels 926 855 AAA- AAA-
24

Super 8 818 AA
25

Dolce hotels and resorts 724 AA-
26

24 Comfort Inn 715 707 AAA- AAA-
27

26 Residence Inn 697 609 AA+ AA+
28

29 Extended Stay America 597 552 AA- AA-
29

28 Autograph Collection Hotels 583 560 AA- AA-
30

27 SpringHill Suites 551 596 AA AA
31

30 The Ritz Carlton 547 546 AA+ AA+
32

31 Melia 533 503 AAA- AAA-
33

25 NH 494 643 AA AA+
34

34 Quality 486 451 AA+ AA-
35

33 Homewood Suites 473 485 AA AA+
36

35 Aloft 470 441 AA- AA
37

Hawthorn Suites by wyndham 468 AA-
38

32 TRYP 440 486 AA AA-
39

37 Millennium Hotels 437 399 AA- AA-
40

Hanting Hotel 422 AA-
42

41 Baymont 368 300 AA- AA-
43

21 Fairfield Inn & Suites 408 468 AA+ AA-
44

36 Howard Johnson 355 418 AA- AA-
45

44 Jinjiang 327 278 AA AA+
46

48 Pullman 323 244 AA- AA-
47

45 Luxury Collection 318 276 AA- AA-
48

43 Copthorne Hotels 312 293 AA- AA-
49

49 Le Meridien 312 243 AA- AA-
50

Wingate by Wyndham 297 AA+

 

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