Global hotel rates to rise further in 2027 amid demand & inflation: Report
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India will still see rates grow but more slowly, as a result of improved supply of hotel rooms.
Global hotel rates are forecast to rise in 2027, continuing the trend set in 2026. Resilient corporate travel and meetings demand across the Americas and Europe – combined with persistent inflation – reportedly is pushing prices upward, with more moderate increases in Asia-Pacific. However, the picture is said to be far from uniform as the ongoing Middle East conflict continues to impact demand in key Gulf destinations.
The Hotel Monitor 2027, produced by American Express Global Business Travel (Amex GBT) is an annual forecast of global hotel rates in key business travel destinations across the world.
Given ongoing geopolitical uncertainty and commodity price volatility, this year’s report presents rate forecasts as a range rather than a single figure for the first time. Amex GBT advises using the lower end of the range if the Middle East conflict does not resolve quickly, or if global inflation tracks the International Monetary Fund’s (IMF) July World Economic Outlook forecast of 4.7% for 2026. If inflation rises beyond that level, the upper end of the range is the more likely outcome.
The report provides further analysis of key cities and countries, exploring the underlying factors driving the predictions.
Dubai and the wider Gulf: The Middle East conflict has reportedly kept hotel occupancy in the UAE depressed, falling as low as 19.6% in March before recovering to the 40-50% range. Amex GBT expects hoteliers to offer compelling rates to win back visitors, forecasting Dubai prices to rise by just 1-2% in 2027.
Mexico City and Paris: Both cities said to remain resilient, in-demand destinations despite modest domestic economic growth. Mexico City’s diversified visitor base and status as a popular regional meetings destination should sustain rate growth of 4.7-7.1%, while Paris continues to benefit from its reputation as a leading events destination, with hotel rates expected to rise by at least 3.1%.
India remains the country to watch in 2027: India – projected to be the world’s fastest growing economy in 2027– will still see rates grow but more slowly, as a result of improved supply of hotel rooms. Amex GBT anticipates rate increases will moderate from recent years’ sharp rises but could still exceed 5%, with Bengaluru forecast to grow 5.0-5.5% as global hotel chains continue expanding their presence across the country.
“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.”
