Global hotel rates set to rise again in 2027: Amex GBT

According to American Express Global Business Travel’s (Amex GBT) new Hotel Monitor 2027, hotel rates are expected to continue rising globally in 2027, as resilient corporate travel and meetings demand and persistent inflation put upward pressure on prices across the Americas and Europe.

However, the outlook varies considerably by destination. Canadian markets sit toward the more moderate end of the forecast, with hotel rate increases expected to remain below 3%. Healthy hotel inventory and steady demand are expected to limit significant pricing pressure in Canada.

Mexico City is a notable North American exception, with rates potentially rising as much as 7.1%. Its diversified mix of government, business and international visitors, along with its strength as a meetings destination, is expected to sustain demand despite modest economic growth and a healthy hotel construction pipeline.

Some of the largest rate increases are forecast in Latin America. São Paulo leads the cities tracked, with rates potentially rising as much as 12.2%. Strong demand from Brazil’s expanding oil and gas sector is contributing to pricing pressure, while new hotel inventory is not expected to arrive in time to moderate rate growth in 2027. Buenos Aires could see increases of more than 8%.

Europe is also expected to see solid rate increases as corporate and leisure demand remains strong. Madrid stands out, with rates potentially rising as much as 9.2%, while London and Paris are also forecast to move higher in 2027.

The Middle East presents a different outlook. The conflict deterred visitors to Dubai during the first half of 2026, contributing to a sharp drop in hotel occupancy. As the geopolitical situation resolves, Amex GBT expects Dubai hoteliers to offer compelling rates to attract visitors back, with rates forecast to rise just 1% to 2% in 2027.

2027 Hotel rate outlook for Canada and key global markets:

City      Lower forecast     Upper forecast

Calgary         +1.9%                   +2.9%
Montréal     +0.5%                   +2.2%
Ottawa         +1.9%                   +2.9%
Toronto       +0.5%                   +1.9%
Vancouver   +1.4%                   +2.5%

New York     +1.6%                  +2.5%
Los Angeles +1.3%                  +2.3%

Mexico City  +4.7%                +7.1%

London         +3.6%                +5.4%
Paris              +3.1%                +4.8%
Madrid          +6.1%                +9.2%

São Paulo    +10.9%              +12.2%
Buenos Aires +8.1%              +8.7%

Dubai              +1.0%             +2.0%

Tokyo              +3.3%             +4.9%

For the first time, Amex GBT is presenting its hotel rate forecasts as ranges rather than single figures, reflecting price volatility.

Sara Andell, Director of Consulting Strategy, Amex GBT Consulting, explained that: “This year’s forecast reveals a nuanced global environment where geopolitical uncertainties and commodity price volatility are shaping hotel rates in different ways across regions.”

Andell continued: “Price is a key indicator, but it doesn’t always tell the full story. We’re encouraging companies to consider what value means to them, and what they are getting from their hotel spend, not just the headline rate.”

The full report is available to download here: Hotel Monitor 2027.