Global Hotel Rates Set for Double-Digit Increases in 2027

A new forecast from American Express Global Business Travel (Amex GBT) predicts that hotel rates will continue to rise across major business and leisure destinations in 2027. The Hotel Monitor 2027 report cites continued corporate travel and meetings demand, persistent inflation, and geopolitical uncertainty as key factors driving hotel pricing.

The size of the increase is expected to vary significantly by market, with some cities facing double-digit increases. In South America, São Paulo hotel rates are projected to rise between 10.9% and 12.2%, while Buenos Aires could see increases of between 8.1% and 8.7%. Madrid is also expected to record a significant increase, with rates forecast to climb between 6.1% and 9.2%.

London prices are projected to rise 3.6% to 5.4%, while Paris is forecast at 3.1% to 4.8%. Mexico City could see rates increase between 4.7% and 7.1%. In Asia-Pacific, Sydney rates are projected to rise between 3.5% and 5%, while Bengaluru could see increases of 5% to 5.5%. Singapore is expected to record a smaller increase of between 0.8% and 1.6%. Dubai is another market where increases are expected to remain relatively limited, with rates forecast to rise between 1% and 2%.

For the first time, Amex GBT is presenting its annual hotel forecasts as ranges rather than single figures, reflecting uncertainty around geopolitical developments, commodity prices, and inflation. The report says the lower end of the forecast ranges would be more likely if the conflict in the Middle East does not resolve quickly or global inflation follows the International Monetary Fund's July outlook.