December 2013

Hilton’s Reputation Worth More Than its Hotels

Hilton’s Reputation Worth More Than its Hotels

 

For those who ever doubted the link between reputation and financial success, they need only to look at the prospectus for Hilton Hotels ahead of its planned IPO.

Set to return to the public markets after six years in the hands of private equity, the prospectus outlines that the group’s reputation is worth more than its hotels.

The prospectus attributes $11.2bn to the value of its brand and goodwill but only $9.1bn to its entire property portfolio. 

A worldwide network of 4,041 hotels, resorts and timeshares in 90 countries, it acknowledges the value of its intangible assets,

“Our brands and our reputation are among our most important assets. Our ability to attract and retain guests depends, in part, on the public recognition of our brands and their associated reputation.”

The nature of a global hotel network means that exposure to reputation risk (the number one concern for big businesses) is also significant, the prospectus states natural disasters, crime and individual guest notoriety as just a few of the ongoing risks to their reputation. 

As a global hotel network, the role of social media also has a huge role to play in reputation, both in protecting, projecting and potentially devaluing its multi-billion dollar reputation.

Social media transcends geography and, for any global organisation, the importance of understanding how they are being assessed, at any point in time, in any country is the only way to protect value and secure long term success.

This is why we work with organisations, using digital content and conversation to map and track corporate reputation, both in terms of how they are perceived and in relation to key reputation risks.