Ratan Tata, the head of IHCL (the Indian Hotels Company) which owns the Taj group of hotels disclosed that Taj group has brand value of Rs 4000 crore. He was responding to queries of shareholders in a meeting. Last year, two big brands in hotel industry Taj and Orient-Express Hotels were disputing over their respective brand positioning and image.

 

Saurabh Gupta, Associate Drector of hotel consultancy HVS International on the issue of valuation said that there is a hard aspect and soft aspect when it comes to valuing hotel brands. The hard aspect includes value of the property; the soft aspect includes the perception of the brand by its guests, its revenue per room, customer database, strategic alliances and loyalty program.

 

And, accordingly, most hotels give importance to soft aspect in valuation. It is understood that UK's Brand Finance has been behind the valuation of the hotel firm's intangible assets. Taj group which acquisitioned Orient-Express Hotels is basically not limited to tangible products rather it is more valued in intangible services, and is known for its properties from luxury to leisure to business.