Hotel Rates Set for Moderate Growth in 2027 Amid Ongoing Inflation and Geopolitical Uncertainty

Global hotel rates are projected to rise in 2027 due to resilient corporate travel and meetings demand across the Americas and Europe, combined with persistent inflation. According to the Hotel Monitor 2027 report by American Express Global Business Travel (Amex GBT), this trend is expected to continue from 2026.

The report forecasts hotel rate increases as a range rather than a single figure for the first time due to ongoing geopolitical uncertainty and commodity price volatility. Amex GBT advises using the lower end of the range if the Middle East conflict does not resolve quickly, or if global inflation tracks the International Monetary Fund's (IMF) July World Economic Outlook forecast of 4.7% for 2026.

Key cities such as Dubai and Paris are expected to see moderate rate growth due to their resilience in demand despite modest domestic economic growth. Mexico City is anticipated to sustain a higher rate growth of 4.7-7.1%, while India, projected to be the world's fastest-growing economy in 2027, will still see rates grow but more slowly due to improved supply of hotel rooms.

Bengaluru is forecasted to grow at 5.0-5.5% as global hotel chains continue expanding their presence across the country. Amex GBT Director of Consulting Strategy Sara Andell emphasized that price is a key indicator, but it doesn't always tell the full story.