Hotel Monitor 2027 forecasts continued rate growth worldwide, with resilient corporate travel, inflation and supply constraints supporting pricing across key markets.
Global hotel rates are expected to continue rising in 2027, driven by resilient corporate travel and meetings demand, persistent inflation and uneven hotel supply across regions, according to the latest Hotel Monitor 2027 released by American Express Global Business Travel (Amex GBT).
The annual report forecasts higher hotel rates across most major business travel destinations worldwide, with stronger growth anticipated in the Americas and Europe, while Asia-Pacific is expected to experience more moderate increases. For the first time, Amex GBT has presented its forecasts as ranges rather than fixed figures, reflecting the uncertainty posed by ongoing geopolitical developments and commodity price volatility.
According to the report, hotel pricing in several key markets is expected to remain under upward pressure as travel demand continues to outpace available room inventory. Inflationary pressures and elevated operating costs are also contributing to higher room rates globally.
Among the major cities tracked, São Paulo is forecast to witness one of the highest increases, with hotel rates expected to rise between 10.9 per cent and 12.2 per cent, followed by Buenos Aires at 8.1–8.7 per cent. In Europe, Madrid is projected to record growth of 6.1–9.2 per cent, while London and Paris are expected to see increases of 3.6–5.4 per cent and 3.1–4.8 per cent, respectively.
In North America, hotel rates in New York are forecast to increase by 1.6–2.5 per cent, while Toronto is expected to register growth of 0.5–1.9 per cent. Mexico City remains a standout market with projected increases of 4.7–7.1 per cent, supported by sustained business and meetings demand.
The report identifies India as a market to watch in 2027. While hotel rate growth is expected to moderate compared with recent years due to improved room supply, pricing is still projected to increase. Bengaluru is forecast to record hotel rate growth of 5–5.5 per cent, supported by the city’s strong corporate travel and technology sectors.
The Middle East presents a more varied picture. Amex GBT noted that geopolitical tensions have affected travel demand in parts of the region, particularly in the UAE. As a result, Dubai hotel rates are forecast to rise by just 1–2 per cent, while Riyadh is expected to register growth of 1.5–3.2 per cent.
Commenting on the outlook, Sara Andell, Director of Consulting Strategy at Amex GBT Consulting, said, “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. Price is a key indicator, but it doesn’t always tell the full story.”
The report also highlighted the growing role of artificial intelligence in hotel sourcing and revenue management, with both suppliers and corporate travel buyers increasingly using AI-powered tools to optimise pricing, sourcing decisions and negotiations.
Despite global economic and geopolitical uncertainties, the overall outlook indicates continued strength in business travel demand, supporting sustained growth in hotel room rates across most major markets in 2027.
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