GBT Forecasts Rising Hotel Rates Worldwide Amid Global Inflation

Travel managers and business travelers are in for a surprise when it comes to hotel rates in 2027, according to American Express GBT's annual Hotel Monitor study. This year, Amex GBT is forecasting rising rates in major business cities worldwide, but with a twist: the projections come in the form of a range, rather than a single figure.

The conflict in the Middle East and global inflation are key factors clouding the forecast. As such, Amex GBT recommends that travel policy managers adopt the low-end scenario if the conflict continues or global inflation remains at 4.7%, but consider the high-end scenario if inflation exceeds this threshold.

Across Europe, Amex GBT expects a significant increase in hotel rates across most destinations, with certain factors contributing to the rise, such as the doubling of hotel VAT in Belgium and the introduction of a tourist tax in Edinburgh. The Scottish metropolis is showing one of the highest projected increases in Europe, between +6.2% and +7.1%, along with Madrid and London.

In North America, hotel rates are expected to experience only a milder increase, generally ranging between +1.5% and +2.5% in major cities such as New York, Chicago, and Los Angeles. Conversely, hotel prices in major South American cities are following a similar trajectory to Mexico City, but to a more pronounced degree.

In the Asia-Pacific region, Amex GBT forecasts mixed trends in hotel prices across the region, ranging from flat to moderate growth in Singapore and China's major business cities, where supply continues to outstrip demand.