Amex GBT Forecasts Global Hotel Rate Increases for 2027

Worldwide Hotel Rates Set to Climb

Global hotel rates are projected to rise throughout 2027, driven by sustained corporate travel demand, ongoing inflation, and varied regional supply conditions, according to the Hotel Monitor 2027 report from American Express Global Business Travel (Amex GBT). The annual analysis indicates that key business travel destinations will experience higher accommodation costs.

For the first time, Amex GBT has presented its forecasts as ranges, reflecting the current geopolitical uncertainties and volatility in commodity prices.

The report suggests that the lower end of these forecast ranges is more probable if the conflict in the Middle East does not quickly resolve, or if global inflation aligns with the International Monetary Fund’s July 2026 World Economic Outlook forecast of 4.7 per cent for the current year. Conversely, higher inflation could push rates towards the upper end of the projected increases.

Americas and Europe See Stronger Growth

The Americas and Europe are expected to register some of the most significant hotel rate increases. In the United States, New York hotel rates are forecast to climb by 1.6–2.5 per cent in 2027. Canada’s Toronto is projected for a more modest growth of 0.5–1.9 per cent. Mexico City is anticipated to see a 4.7–7.1 per cent increase.

South American cities show even higher projections, with Buenos Aires expecting an 8.1–8.7 per cent rise and Sao Paulo forecast for a substantial 10.9–12.2 per cent increase. Across Europe, London hotel rates are predicted to increase by 3.6–5.4 per cent, while Paris could see a 3.1–4.8 per cent rise. Madrid is forecast to record growth of 6.1–9.2 per cent.

Asia-Pacific and Middle East Trends

The Asia-Pacific region is predicted to experience more moderate growth in hotel rates compared to other global markets. Bengaluru, India, is forecast to see a 5–5.5 per cent rise in 2027, with Amex GBT noting India as a market to watch, where increased hotel supply may temper overall rate increases despite continued growth.

Elsewhere in Asia, Beijing hotel rates are projected to increase by 1.9–3 per cent, Sydney by 3.5–5 per cent, and Singapore by 0.8–1.6 per cent. The Middle East presents a more varied outlook; Amex GBT reported that ongoing conflict has impacted hotel occupancy in the UAE, which fell to 19.6 per cent in March before recovering to the 40–50 per cent range.

Consequently, Dubai hotel rates are forecast to rise by only 1–2 per cent, while Riyadh is expected to see a 1.5–3.2 per cent increase.

Implications for Asian Corporate Travel

Beyond hotel rates, Amex GBT Consulting also noted that rising airfares are influencing corporate travel budgets and demand. Airfares increased by 15 per cent year-on-year in mid-2026, with some routes within Asia experiencing double that rate of increase.

Sara Andell, Director of Consulting Strategy at Amex GBT Consulting, highlighted the nuanced global environment where geopolitical uncertainties and commodity price volatility shape hotel rates differently across regions.

For Asian corporate travellers and businesses, these forecasts suggest a need for careful budget planning, particularly for destinations like Bengaluru, which will see significant rate hikes.

While cities such as Singapore and Beijing show more contained increases, the combined effect of rising airfares and hotel costs will likely prompt travel managers to utilise AI-enabled tools for sourcing and negotiations, a trend Amex GBT observes hotels are also adopting for revenue management.