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Global hotel rates are forecast to increase further in 2027, according to the Hotel Monitor 2027 report by travel software firm American Express Global Business Travel (Amex GBT). Its report found that persistent inflation and strong corporate travel demand will continue pushing accommodation prices upward across Europe and the Americas, while growth in Asia-Pacific remains more restrained.
Geopolitical uncertainty and fluctuating commodity prices have forced analysts to project rate increases as a range rather than a single figure. The report advises businesses to prepare for the lower end of predicted ranges if regional conflicts persist or if global inflation aligns with International Monetary Fund targets of 4.7% for 2026. Higher inflation will likely push rate increases toward the top end of projections.
Major commercial centres will experience varying levels of price pressures. Hotel rates in London are projected to grow between 3.6% and 5.4%, while Paris is expected to see increases of 3.1% to 4.8%. Rates in New York are set for modest growth of 1.6% to 2.5%. In contrast, Latin American hubs will lead global increases, with Sao Paulo forecast to rise by 10.9% to 12.2% and Buenos Aires by 8.1% to 8.7%.
The ongoing conflict in the Middle East continues to suppress occupancy in the United Arab Emirates, where rates dropped to 19.6% in March before recovering to between 40% and 50%. Hoteliers in Dubai are expected to offer competitive pricing to attract corporate clients, limiting local rate growth to between 1.0% and 2.0%. In India, expanding hotel room inventory will moderate previously sharp rate surges, though tech hub Bengaluru is still projected to grow between 5.0% and 5.5%.
Surging airfares – up 15% year-on-year in mid-2026 – are also squeezing corporate travel budgets and altering demand patterns across Asia-Pacific. Despite tighter margins, business travellers continue to choose premium accommodation rather than moving to lower-tier providers. Concurrently, artificial intelligence is altering negotiation dynamics, with hotels implementing dynamic rate-setting algorithms and buyers deploying automated sourcing tools to secure better contractual terms.
Sara Andell, director of consulting strategy at Amex GBT, 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. We’re encouraging companies to consider what value means to them, and what they are getting from their hotel spend, not just the headline rate.”
Global hotel rates are forecast to increase further in 2027, according to the Hotel Monitor 2027 report by travel software firm American Express Global Business Travel (Amex GBT). Its report found that persistent inflation and strong corporate travel demand will continue pushing accommodation prices upward across Europe and the Americas, while growth in Asia-Pacific remains more restrained.
Geopolitical uncertainty and fluctuating commodity prices have forced analysts to project rate increases as a range rather than a single figure. The report advises businesses to prepare for the lower end of predicted ranges if regional conflicts persist or if global inflation aligns with International Monetary Fund targets of 4.7% for 2026. Higher inflation will likely push rate increases toward the top end of projections.
Major commercial centres will experience varying levels of price pressures. Hotel rates in London are projected to grow between 3.6% and 5.4%, while Paris is expected to see increases of 3.1% to 4.8%. Rates in New York are set for modest growth of 1.6% to 2.5%. In contrast, Latin American hubs will lead global increases, with Sao Paulo forecast to rise by 10.9% to 12.2% and Buenos Aires by 8.1% to 8.7%.
The ongoing conflict in the Middle East continues to suppress occupancy in the United Arab Emirates, where rates dropped to 19.6% in March before recovering to between 40% and 50%. Hoteliers in Dubai are expected to offer competitive pricing to attract corporate clients, limiting local rate growth to between 1.0% and 2.0%. In India, expanding hotel room inventory will moderate previously sharp rate surges, though tech hub Bengaluru is still projected to grow between 5.0% and 5.5%.
Surging airfares – up 15% year-on-year in mid-2026 – are also squeezing corporate travel budgets and altering demand patterns across Asia-Pacific. Despite tighter margins, business travellers continue to choose premium accommodation rather than moving to lower-tier providers. Concurrently, artificial intelligence is altering negotiation dynamics, with hotels implementing dynamic rate-setting algorithms and buyers deploying automated sourcing tools to secure better contractual terms.
Sara Andell, director of consulting strategy at Amex GBT, 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. We’re encouraging companies to consider what value means to them, and what they are getting from their hotel spend, not just the headline rate.”
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The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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