The hotel sector: the big casualty of the COVID-19 pandemic

The world's 50 strongest hotel chains have suffered a significant drop in overall profits as a result of the pandemic's restrictive measures
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The hotel sector has been severely affected by the coronavirus pandemic. This has been revealed in a report issued by Brand Finance Hotels, which has exposed the decrease in the total value of the 50 most powerful hotel brands worldwide by 33%, which translates into a total profit of 70.2 million in 2020 compared to 47.4 million profit so far in 2021.

Despite this decline, Brand Finance is optimistic that the hotel sector has the potential to continue to grow thanks to the gradual return of tourists following the gradual lifting of health measures. In this sense, the report reflects an improvement in hotel bookings and occupancy for the coming years.  

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In addition, Brand Finance has created a list of the most powerful hotel brands in the world in 2021, headed by the Hilton hotel chain, which managed to take first place with a value of 7.6 billion dollars, although this value decreased by 30% compared to last year. On the other hand, compared to the general trend of decline, the Hyatt chain increased by 3.6%, obtaining a profit of 4.69 billion dollars, positioning itself ahead of the Holiday Inn chain, as the latter would have achieved a profit of 3.77 billion dollars, which translates into a 16% decrease.

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On the other hand, the Hampton chain has taken fourth place in the ranking after its value fell by 26% to 286 million dollars. In fifth place is the Marriott chain, which fell from second place in last year's ranking. This drop has meant a loss of 24 billion dollars. They are followed by Shangri-La Hotels, which is in sixth place with a fall of 19.5%. As for the Intercontinental hotel brand, it is in seventh position with a value of 1.46 billion after its value fell by 16.3%, followed by the Double Tree chain, which lost 45.6% of its value to register 1.3 billion in 2021. 

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In ninth place is the Crown Blaze chain while the Sheraton brand, which was valued at 1.13 billion dollars, was positioned at the bottom of the ranking, i.e. down 16%. 

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In 2020 the coronavirus pandemic devastated global tourism and made it the worst year in the history of the tertiary sector, with a 1 billion decrease in the number of tourists due to mobility restrictions. In this respect, the tourism sector lost 1.3 billion in 2020, as announced by the World Tourism Organisation.