GBT Forecasts Modest Hotel Rate Hikes Globally in 2027

According to American Express Global Business Travel's Hotel Monitor, hotel rates will increase in most global markets in 2027. The largest increases are expected in Latin America and parts of Europe. North America is projected for near-flat growth across much of the region.

The forecast ranges were chosen due to uncertainty surrounding the Middle East conflict and commodity price volatility. Amex GBT Consulting director of consulting strategy Sara Andell advised using the lower end of the range if inflation rises beyond 4.7%, as forecast by the International Monetary Fund for 2026.

Europe is expected to see 'solid' rate increases, despite modest growth forecasts for the EU's 21 member states and the UK. Madrid has the highest upper-end 2027 forecast at a 6.1% to 9.2% increase year over year, followed by Edinburgh at 6.2% to 7.1%. The UK cities of Manchester and Liverpool have imposed nightly charges on accommodation bookings, with other cities expected to follow.

Amex GBT projects London at 3.6% to 5.4%, Paris at 3.1% to 4.8%, and Frankfurt at 3.1% to 4.7%. Dublin has the region's lowest range at 2.7% to 4%. Most North American cities are projected for year-over-year increases at or below 3%, with exceptions in Mexico City and San Francisco.