Hotel Prices Set to Rise in Sydney Amid Global Business Travel Boom

American Express Global Business Travel (Amex GBT) has forecast hotel prices to rise by three and a half to five per cent in Sydney for 2027, due to resilient demand and persistent inflation. This puts Sydney roughly on par with other major business travel destinations such as London and Paris, but ahead of more subdued growth expected in Asian hubs like Singapore and Beijing.

The forecast is part of Amex GBT's annual Hotel Monitor 2027 report, which presents forecasts as ranges rather than single figures to reflect geopolitical uncertainty and commodity price volatility. The company advises using the lower end of each range if the Middle East conflict does not resolve quickly, or if global inflation tracks the International Monetary Fund's July World Economic Outlook forecast of 4.7 per cent for 2026.

Hotel rates in key destinations are expected to rise due to resilient corporate travel and meetings demand across the Americas and Europe, combined with ongoing inflation. However, more moderate increases are forecasted across Asia-Pacific, with some cities experiencing even slower growth. For example, Dubai hotel prices are expected to rise by just one to two per cent in 2027.