Hotel rates are expected to continue rising across many of the world’s major business and leisure destinations in 2027, with some cities facing double-digit increases, according to a new forecast from American Express Global Business Travel (Amex GBT).
The company’s Hotel Monitor 2027 points to continued corporate travel and meetings demand, persistent inflation and geopolitical uncertainty as key factors shaping hotel pricing next year.
The size of the increase is expected to vary considerably by market.
Some of the steepest increases are forecast in South America. Hotel rates in São Paulo are projected to rise between 10.9% and 12.2%, while Buenos Aires could see increases of between 8.1% and 8.7%.
Madrid is also expected to record a significant increase, with rates forecast to climb between 6.1% and 9.2%. In London, prices are projected to rise 3.6% to 5.4%, while Paris is forecast at 3.1% to 4.8%.
Mexico City could see rates increase between 4.7% and 7.1%.
The outlook is more moderate in some North American markets. New York hotel rates are expected to rise between 1.6% and 2.5%, while Toronto is forecast to see an increase of just 0.5% to 1.9%.
In Asia-Pacific, Sydney rates are projected to rise between 3.5% and 5%, while Bengaluru could see increases of 5% to 5.5%. Singapore is expected to record a smaller increase of between 0.8% and 1.6%.
Dubai is another market where increases are expected to remain relatively limited, with rates forecast to rise between 1% and 2%.
For the first time, Amex GBT is presenting its annual hotel forecasts as ranges rather than single figures, reflecting uncertainty around geopolitical developments, commodity prices and inflation.
The report says the lower end of the forecast ranges would be more likely if the conflict in the Middle East does not resolve quickly or global inflation follows the International Monetary Fund’s July outlook. Higher-than-expected inflation would make the upper end of the forecasts more likely.
“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,” said Sara Andell, Director of Consulting Strategy, Amex GBT Consulting.
“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 report also points to pressure elsewhere in travel budgets. Amex GBT says airfares were up 15% year-over-year in mid-2026, with increases on some Asia routes reaching roughly twice that level.
Despite higher travel costs, the company says business travellers have continued to favour premium accommodations rather than shifting to lower hotel categories.
The Hotel Monitor 2027 forecasts are based on Amex GBT data combined with inflation and GDP projections from the International Monetary Fund. Prophet time-series modelling was used to produce the hotel price forecasts, with prices calculated in local currency.
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