Global hotel rates are projected to increase in 2027, building upon the trends established in 2026, according to the annual Hotel Monitor 2027 from American Express Global Business Travel (Amex GBT). Key factors influencing this rise include a strong demand for corporate travel and meetings in the Americas and Europe, along with ongoing inflation, though increases in the Asia-Pacific region will be more moderate. However, geopolitical factors, particularly the Middle East conflict, are expected to impact demand in certain Gulf destinations, creating an uneven landscape.
For the first time, Amex GBT presents hotel rate forecasts as a range due to global uncertainties. If inflation aligns with the International Monetary Fund’s July forecast of 4.7% for 2026 and the Middle East conflict persists, the lower end of the range should be considered. If inflation surpasses this level, the upper end is deemed more likely.
Forecast Highlights for Major North American Cities:
- Mexico City: +4.7% to +7.1%
- San Francisco: +3.6% to +5.4%
- Dallas: +1.9% to +2.9%
- Philadelphia: +1.8% to +2.9%
- New York: +1.6% to +2.5%
- Chicago: +1.5% to +2.7%
- Los Angeles: +1.3% to +2.3%
- Washington: +1.3% to +2%
- Toronto: +0.5% to +1.9%
- Boston: +0.5% to +1.5%
- Seattle: flat to +0.8%
Sara Andell, director of consulting strategy at Amex GBT Consulting, emphasized the importance of understanding the broader implications of hotel rates, advising companies to evaluate the value received from their hotel expenditures beyond just the rates themselves.
