Global hotel rates are expected to increase in 2027, extending the trend seen in 2026, according to the American Express Global Business Travel’s Hotel Monitor 2027.

The recently released report forecasts higher rates across major business travel markets, driven by resilient corporate and meetings demand in the Americas and Europe, as well as continued inflation. Rate increases are expected to be more moderate in Asia-Pacific, while the ongoing conflict in the Middle East is affecting demand in Gulf destinations.

For the first time, Amex GBT is presenting its hotel rate forecasts as ranges rather than single figures, citing geopolitical uncertainty and volatility in commodity prices. The company said the lower end of the forecast ranges would be more likely if the Middle East conflict does not resolve quickly or if global inflation follows the International Monetary Fund’s July World Economic Outlook forecast of 4.7 percent for 2026. The upper end would be more likely if inflation exceeds that level.

“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,” Sara Andell, director of Consulting Strategy, Amex GBT Consulting, said in a statement. “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.”

Among the markets tracked in the report, New York hotel rates are forecast to increase at a range of 1.6 percent to 2.5 percent in 2027, while Mexico City is projected to see a 4.7 percent to 7.1 percent increase. Toronto is forecast at 0.5 percent to 1.9 percent, Buenos Aires at 8.1 percent to 8.7 percent and São Paulo at 10.9 percent to 12.2 percent.

Rising airfares also are affecting business travel patterns. According to Amex GBT Consulting, airfares increased 15 percent year-over-year in mid-2026 and rose by as much as twice that amount on some Asia routes. The report said higher air costs are putting pressure on travel budgets and contributing to changes in demand in Asia-Pacific, while business travelers continue to favor premium hotel accommodations.

The report also examines the use of artificial intelligence in hotel sourcing. Hotels are increasingly using agentic AI for revenue management and rate-setting, while travel managers are adopting AI-enabled sourcing tools to accelerate decisions and support pricing negotiations.