The top 50 hotel brands around the world could see combined losses of up to $14bn to their brand value due to the coronavirus.
The latest Brand Finance Hotels 50 2020 report said that brand value could take a 20 per cent hit, which would equate to a total of $14 billion worth of losses.
If the top 500 brands are considered in the same manner, losses of around $1 trillion can be expected.
A related statement from Brand Finance reads: “COVID-19 is undoubtedly going to wreak havoc on the sector in the coming year – both financially, as hotels are forced to close and bookings are cancelled, and reputationally, as brands that do not manage to avoid association with COVID-19 may suffer lasting reputational damage.”
Brand finance director Savio D’Souza commented: “Unsurprisingly, the COVID-19 pandemic is going to hit the hotels sector hard as holidays are cancelled and people work from home.
“While Brand Finance has predicted that hotel brands could face an average 20 per cent loss of brand value, the brands that will be less impacted will be properties with strong brands where social distancing protocols will be easier such as resorts and extended stay properties.
“Unsurprisingly, brands with a larger exposure to primary markets will be impacted more than secondary and tertiary markets as customers move their preference to properties within ‘drive-to’ markets.”
Elsewhere in the report, Brand Finance revealed that Hilton remains the world’s most valuable hotel brand, at $10.8 billion.
Mercure, however, won when it came to brand growth, coming in at 57 per cent.
Finally, Airbnb came top of the pile for leisure and tourism brands, valued at $10.5 billion.