2027 Hotel Rate Projections Show Regional Variations

Hotel rates are expected to rise in 2027 across major business destinations, with Latin America and Europe leading the growth. American Express Global Business Travel's Hotel Monitor 2027 forecasts rate increases ranging from 1.0% to 12.2%, depending on the city. Mexico City is projected to see a 4.7% to 7.1% increase in hotel rates due to its diversified visitor base and status as a popular regional meetings destination. Paris, which continues to benefit from its reputation as a leading events destination, is expected to experience at least 3.1% growth.

Meanwhile, the Gulf region, including Dubai and Riyadh, is lagging behind in terms of hotel rate growth due to the ongoing Middle East conflict, which has led to reduced demand for hotels. In contrast, India is expected to see significant rate growth cool down as new supply from global chains comes online.

Airfare prices are also a factor in corporate travel budgets, with Amex GBT Consulting predicting fares up 15% year-over-year by mid-2026 and as much as 30% on Asia routes. The report highlights the increasing use of artificial intelligence (AI) in hotel revenue management and sourcing tools for buyers.