Photo by Atiketta Sangasaeng for Adobe Stock
Global hotel rates are forecast to rise in 2027, according to American Express Global Business Travel's Hotel Monitor 2027, continuing the trend set in 2026. Resilient corporate travel and meetings demand across the Americas and Europe — combined with persistent inflation — are pushing prices upward, with more moderate increases in the Asia-Pacific region. However, the picture is far from uniform as the ongoing Middle East conflict continues to impact demand in key Gulf destinations.
The Hotel Monitor 2027, produced by Amex GBT — a software and services company for travel, expenses and events — is an annual forecast of global hotel rates in key business travel destinations across the world.
Given ongoing geopolitical uncertainty and commodity price volatility, Amex GBT notes that this year’s report presents rate forecasts as a range rather than a single figure for the first time. The company 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 July World Economic Outlook forecast of 4.7 percent for 2026. If inflation rises beyond that level, the upper end of the range is the more likely outcome.
The forecasting is based on analysis of Amex GBT data, combined with inflation and GDP forecasts from the IMF. Forecast summaries include:
Photo Credit: Amex GBT Hotel Monitor 2027Underlying factors driving the predictions
Dubai and the wider Gulf: The Monitor notes that the Middle East conflict has kept hotel occupancy in the UAE depressed, falling as low as 19.6 percent in March before recovering to the 40 to 50 percent range. Amex GBT said it expects hoteliers to offer compelling rates to win back visitors, forecasting Dubai prices to rise by just 1-2 percent in 2027.
Mexico City and Paris: Both cities remain resilient, in-demand destinations despite modest domestic economic growth, according to the report. Mexico City’s diversified visitor base and status as a popular regional meetings destination should sustain rate growth of 4.7 to 7.1 percent. Paris continues to benefit from its reputation as a leading events destination, with hotel rates expected to rise by at least 3.1 percent.
India remains the country to watch in 2027: Projected to be the world’s fastest-growing economy in 2027, India 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 percent, with Bengaluru forecast to grow 5 to 5.5 percent as global hotel chains continue expanding across the country.
Amex GBT also highlighted how rising airfares — up 15 percent year-over-year in mid-2026, and as much as double that on Asia routes — are squeezing travel budgets and reshaping demand into the Asia-Pacific region, even as business travelers continue to favor premium accommodations over trading down.
"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."
AI reshapes the hotel sourcing landscape
Amex GBT’s Hotel Monitor also highlights how artificial intelligence is reshaping hotel sourcing on both sides of the negotiating table. On the supplier side, hotels are increasingly deploying agentic AI to optimize revenue management and rate-setting strategies. On the buyer side, AI-enabled sourcing tools are helping travel managers accelerate decisions, sharpen pricing and strengthen negotiating positions — turning sourcing into a continuous process rather than an annual event.
The full report is available to download here: Hotel Monitor 2027.