According to Jones Lang LaSalle Hotels, the key components of brand value are the brand name, re-branding enhancement, sales and marketing infrastructure, including marketing agreements, IT systems and customer databanks, strategic alliances and loyalty programmes, which involve both tangible and intangible components. JLL says that investors must assign a value to the current and potential future benefits of each component as well as their sustainability after the purchase. These benefits can be expressed via revenue enhancement, cost savings, opportunity costs or other methods.

Wynne-Smith said: 'The brand name may provide potential investors with additional up-side, particularly if they do not operate their own brand. A second potential benefit of the brand name is the enhancement of the investor's value of pipeline developments as well as assisting in securing future developments by way of lease or management contract.

'Considering the Posthouse deal, it is generally accepted that Six Continents' purchase was driven by its strategy of expanding the Holiday Inn brand through the UK. Therefore it is debatable if Six Continents would have allowed for brand value for the Posthouse label, given most of the properties were to be re-branded under the Holiday Inn flag.'