Global Hotel Rates to Rise in 2027 Amid Geopolitical Uncertainty
Global hotel rates are expected to rise in 2027 according to American Express Global Business Travel's Hotel Monitor 2027. The report, released on September 25, 2026, forecasts a moderate increase of 1-2% in Dubai and the wider Gulf region due to depressed hotel occupancy caused by the ongoing Middle East conflict.
The conflict has kept hotel occupancy rates low, with some cities like Abu Dhabi experiencing occupancy levels as low as 19.6% in March. Amex GBT expects hoteliers to offer competitive rates to attract visitors back to the area.
In contrast, Mexico City and Paris are expected to experience significant rate growth of 4.7-7.1% and at least 3.1%, respectively. India is also expected to see a moderate increase in rates as global hotel chains expand their presence across the country.
The report highlights that the ongoing geopolitical uncertainty and commodity price volatility are shaping hotel rates differently across regions. Amex GBT advises companies to consider what value means to them, not just the headline rate, when making travel decisions.