Global hotel rates are expected to continue rising in 2027, driven by resilient corporate travel and meetings demand, persistent inflation and uneven regional supply, according to American Express Global Business Travel’s (Amex GBT) Hotel Monitor 2027.The annual report forecasts higher hotel rates across key business travel destinations, with the Americas and Europe expected to see stronger increases, while growth in Asia-Pacific is projected to be more moderate. For the first time, Amex GBT has presented its forecasts as ranges, reflecting continued geopolitical uncertainty and commodity price volatility.The report said the lower end of each range would be more likely if the conflict in the Middle East does not resolve quickly or if global inflation remains in line with the International Monetary Fund’s July World Economic Outlook forecast of 4.7 per cent for 2026. Higher inflation could push rates towards the upper end of the forecast ranges.In the US, New York hotel rates are projected to increase by 1.6-2.5 per cent in 2027, while Toronto is expected to record growth of 0.5-1.9 per cent . Mexico City is forecast to see a 4.7-7.1 per cent increase. Buenos Aires and Sao Paulo are expected to record some of the highest increases, at 8.1-8.7 per cent and 10.9-12.2 per cent , respectively.In Europe, London hotel rates are forecast to rise 3.6-5.4 per cent , while Paris is expected to see a 3.1-4.8 per cent increase. Madrid is projected to record growth of 6.1-9.2 per cent .The Middle East presents a more uneven outlook. Amex GBT said the ongoing conflict has affected hotel occupancy in the UAE, with occupancy falling to 19.6 per cent in March before recovering to the 40-50 per cent range. Dubai hotel rates are consequently forecast to rise by only 1-2 per cent in 2027, while Riyadh is expected to see an increase of 1.5-3.2 per cent .India is identified as a market to watch, with hotel rates expected to continue increasing despite a moderation from recent years. Improved hotel room supply is expected to ease pricing pressure, although Amex GBT forecasts increases of more than 5 per cent in some markets. Bengaluru is projected to record a 5-5.5 per cent rise as global hotel chains continue expanding their presence in India.Elsewhere in Asia-Pacific, Beijing hotel rates are forecast to rise 1.9-3 per cent , Sydney 3.5-5 per cent and Singapore 0.8-1.6 per cent .Amex GBT Consulting also said rising airfares were influencing corporate travel budgets and demand. Airfares increased 15 per cent year-on-year in mid-2026, with increases on some Asia routes reaching twice that level, according to the report.“This year’s forecast reveals a nuanced global environment where geopolitical uncertainties and commodity price volatility are shaping hotel rates in different ways across regions,” said Sara Andell, Director of Consulting Strategy, Amex GBT Consulting.The report also examines the growing role of artificial intelligence in hotel sourcing, with hotels using agentic AI for revenue management and rate setting, while travel managers are adopting AI-enabled tools to support sourcing and negotiations.
