The Role of Brand Affiliation in Hotel Market Value

Abstract

The notion that a hotel’s brand contributes significantly to the property’s market value is supported by an analysis of nearly eleven hundred hotel transactions over the past fifteen years. The analysis found that brands added value beyond the usual contributors to a property’s value, such as net operating income and revenue per available room. The effects of branding were most noticeable in midmarket and upscale hotels. Based on per-room sales statistics, certain brands added significantly more value to their franchisees’ properties than others.

Do brands matter? A comparison of branded and independent hotels’ performance during a full economic cycle

“…In times when performance measurement is becoming increasingly ubiquitous and sophisticated, the need for more knowledge in this field becomes more apparent (Bailey and Ball, 2006;O'Neill and Xiao, 2006). Are affiliated hotels performing better than the independent ones, and if so, is that true in all phases of the economic cycle, i.e., in gloom as well as boom?…”

Customer Satisfaction and Hotel Brand Equity: A Structural Equation Modelling Study

“…At that stage, branding was a relatively new concept in hotel and tourism marketing, and required more research to conceptualize its definition. Blain, Levy, and Ritchie (2005, p. 337) like other relevant studies (H. Kim & W. G. Kim, 2005;O'Neill & Xiao, 2006;Kayaman & Arasli, 2007;O'Neill & Mattila, 2010;Keller, 2016) agreed that branding is a "set of marketing activities that support the creation of a name, symbol, logo, word, mark or other graphic that readily identifies and differentiates a destination". The American Marketing Association (AMA, 2014) defines a brand as a name, sign, design term or symbol, or an amalgamation of these, that identifies the commodities of one or a group of sellers and differentiates their commodities from those of other sellers.…”

“…Davis (2007) and Kayaman and Arasli (2007) also noted that the brand serves to reduce perceived customer risk and simplifies customer choice. Other benefits include licensing opportunities (Keller, 2001) and a higher market value (O'Neill & Xiao, 2006). Ind, Fuller, and Trevail (2012) asserted that branding is a crucial marketing approach, pooling a broad spectrum of marketing functions.…”

Impact of brand recognition and brand reputation on firm performance: U.S.-based multinational restaurant companies’ perspective

“…That is why brand has been actively studied in the hospitality context (e.g., Laroche and Parsa, 2000;O'Neill and Mattila, 2004;O'Neill and Xiao, 2006). As compared to the significance of brand in multinational restaurant companies, the volume of R&D or IT expenditures of multinational restaurant companies is relatively small (as compared to that of pharmaceutical or auto companies, for example), and thus is not applicable to multinational restaurant companies.…”

“…They pointed out that one of the competitive advantages successful giant international corporations have in common is brand that is spread through the globalized mass media. Brand is an important aspect for restaurant corporations and has been extensively examined in the hospitality literature (e.g., Laroche and Parsa, 2000;O'Neill and Mattila, 2004;O'Neill and Xiao, 2006). Therefore, the purpose of the current study is to examine the impact of brand on the financial performance of U.S. multinational restaurant companies.…”