- Hotel rates are set to rise.
- Regional rate growth will vary.
- India will see more hotel supply.
“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, Amex GBT, director of consulting strategy.
India adds supply
India is identified as a market to watch in 2027. Hotel rate growth is expected to slow from recent years as more rooms come into the market, even as India is projected to be the world’s fastest-growing economy in 2027.
Bengaluru is forecast to see hotel rates increase 5 to 5.5 percent. The report also notes that hotel supply is improving in India, with most major global hotel chains now present in the country.
Higher airfares are also putting pressure on travel budgets, with fares up 15 percent year over year in mid-2026 and increases of as much as twice that level on some Asia routes. Business travelers are still choosing higher-end hotels rather than moving to lower-priced options.
Other results
São Paulo is forecast to see the largest increase, at 10.9 to 12.2 percent, followed by Buenos Aires at 8.1 to 8.7 percent. Madrid is expected to rise 6.1 to 9.2 percent, while Mexico City is forecast at 4.7 to 7.1 percent. London is projected at 3.6 to 5.4 percent and Paris at 3.1 to 4.8 percent. New York is expected to see a smaller increase of 1.6 to 2.5 percent, while Toronto is forecast at 0.5 to 1.9 percent.
Dubai is forecast to see growth of just 1 to 2 percent as the Middle East conflict continues to affect demand. Hotel occupancy in the UAE fell to 19.6 percent in March before recovering to between 40 and 50 percent.
A recent report by NYU’s Tisch Center of Hospitality, RateGain and HEDNA examines how hotels are adopting generative AI and other technologies in commercial operations
