With the fierce competition in the hotel market, hotels have paid a great deal of attention to hotel branding to acquire competitive advantages. Therefore, hotel brand equity (HBE) has gradually become the focus of research in the industry. This article discusses HBE's dimensions and their relationships from the information economics point of view and the cognitive psychology point of view and proposes an HBE dimensions relationship theory based on them. Empirical research is provided and validates the proposed theory. The conclusion is that HBE dimensions contain perceived quality, brand credibility, brand image, brand awareness, information cost saving, and perceived risk. Among them, perceived quality, information cost saving, brand awareness, and brand image have a positive effect on brand equity, whereas perceived risk has a negative effect on brand equity. Furthermore, brand credibility is the mediating variable between perceived quality, information cost saving, and brand equity. Also, through the two dimensions of brand awareness and perceived quality, four HBE types are suggested: excellence, potential, crisis, and infantility.