Hotels Prepare for Mixed Growth in 2027 Amid Regional Uncertainties

Hotel prices are expected to rise globally in 2027, but at varying rates depending on the region. According to American Express Global Business Travel's 'Hotel Monitor 2027' report, business travel and meetings will support demand in the Americas and Europe.

The report forecasts higher hotel rates in several major markets, with São Paulo expected to see the largest increase at 10.9 to 12.2 percent, followed by Buenos Aires at 8.1 to 8.7 percent. Madrid is expected to rise 6.1 to 9.2 percent, while Mexico City is forecast at 4.7 to 7.1 percent.

However, the Middle East conflict and inflation may limit growth in some markets. Dubai is forecast to see growth of just 1 to 2 percent as demand is affected by the ongoing conflict.

The report also notes that hotel supply is improving in India, with most major global hotel chains now present in the country. Bengaluru is forecast to see hotel rates increase 5 to 5.5 percent, while higher airfares are putting pressure on travel budgets.