Hotel rates are forecast to increase across nearly every major market next year, according to the American Express GBT Hotel Monitor 2027, an annual forecast of global hotel rates in key business travel destinations across the world.
Forecasting is based on analysis of Amex GBT data, combined with inflation and GDP forecasts from the IMF, using Prophet time series modelling.
Continuing the trend set in 2026, prices are being pushed up by increasing corporate travel demand and inflationary pressures. Uncertainty around the conflict in the Middle East and rising airfares is also having an impact.
Given ongoing geopolitical uncertainty and commodity price volatility, the 2027 report presents rate forecasts as a percentage range rather than a single figure for the first time.
Amex GBT’s Hotel Monitor also explores how AI is changing hotel sourcing, with hotels using agentic AI for revenue management while travel buyers are increasingly deploying AI-powered sourcing tools to negotiate rates and drive value from hotel programmes.
Key findings of the Hotel Monitor 2027 include:
- The highest hotel rates will be in cities like São Paulo (+10.9% to +12.2%), Madrid (+6.1% to +9.2%) and Mexico City (+4.7% to +7.1%).
- London hotel rates are expected to rise by 3.6% to 5.4% in 2027, while Paris is forecast to see increases of 3.1% to 4.8% as demand for major events and business travel remains strong.
- The Middle East presents a more nuanced picture, with depressed occupancy levels in the UAE. Amex GBT forecasts growth of just 1% to 2% in Dubai. It expects hoteliers to offer compelling rates to win back visitors.
- India remains one of the fastest-growing business travel markets globally and is projected to be the world’s fastest growing economy in 2027. Rate growth is beginning to moderate as hotel supply expands. Bengaluru is forecast to see rates rise by 5.0% to 5.5% as global hotel chains continue to expand their presence across the country.
- Rising airfares are increasingly influencing travel decisions, with fares up 15% year-on-year globally in mid-2026 and some Asia routes seeing increases of up to 30%.
- Mexico City and Paris remain resilient, in-demand destinations despite modest domestic economic growth. Mexico City’s diverse visitor base and status as a popular regional meeting destination should sustain rate growth of 4.7-7.1%.
- Paris continues to benefit from its reputation as a leading events destination, with hotel rates expected to rise by at least 3.1%.
“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’re getting from their hotel spend, not just the headline rate.”
