Accommodation costs in corporate travel will not rise at the same pace worldwide in 2027. American Express Global Business Travel’s Hotel Monitor forecasts indicate that some major business travel hubs could see increases approaching double digits, while rates in other cities may remain almost flat.
This divergence makes it harder for companies to build travel budgets based solely on national or regional averages. Amex GBT uses forecast ranges rather than a single rate for individual cities in its 2027 outlook. Global inflation, commodity price volatility and geopolitical uncertainty mean that significant differences can emerge even between cities in the same region.
Price Pressure Is Stronger in Latin America
The highest hotel rate increases are expected in some of Latin America’s major business travel hubs. Corporate hotel rates in São Paulo are forecast to rise by between 10.9 percent and 12.2 percent year on year. The city has the highest projected increase among the major markets covered in the report. Strong corporate demand and Brazil’s expanding oil and gas sector are among the factors behind the pressure.
Hotel rates in Buenos Aires are expected to rise by between 8.1 percent and 8.7 percent, while the forecast for Santiago is more moderate at between 2.8 percent and 4.2 percent. Even within the same region, this gap shows that a single Latin America-wide assumption may no longer be sufficient for corporate travel budgeting.
Madrid Stands Out in Europe
There are also significant differences between European cities. Hotel rates in Madrid are forecast to rise by between 6.1 percent and 9.2 percent in 2027. Edinburgh is expected to record an increase of between 6.2 percent and 7.1 percent. The forecast range is 3.6 percent to 5.4 percent for London, 3.1 percent to 4.8 percent for Paris and 3.1 percent to 4.7 percent for Frankfurt. In Dublin, hotel rate growth is expected to remain between 2.7 percent and 4 percent.
The figures show that major events calendars, hotel supply and city-level corporate demand can create very different pricing environments even within Europe.
Increases Are More Limited in North America
The overall outlook is more moderate in North America. According to Amex GBT, hotel rate increases in many major cities are expected to remain at or below 3 percent. One of the main reasons is that new hotel supply is developing more closely in line with demand.
Mexico City and San Francisco are notable exceptions. Hotel rates in Mexico City are expected to increase by between 4.7 percent and 7.1 percent, while San Francisco is forecast to see growth of between 3.6 percent and 5.4 percent. Rates in Seattle are expected to remain flat or rise by no more than 0.8 percent, while Toronto’s forecast ranges from 0.5 percent to 1.9 percent.
Seoul and India Stand Out in Asia
City-level differences are also visible across Asia-Pacific. Hotel rates in Seoul are expected to rise by between 4.3 percent and 6.4 percent. In India, although the pace of growth is expected to slow compared with previous periods, Bengaluru is forecast to see increases of between 5 percent and 5.5 percent, while Delhi is expected to record growth of between 4.5 percent and 5 percent.
In China’s major business cities, price pressure is expected to remain more limited as new room supply continues to outpace demand. Singapore’s forecast is just 0.8 percent to 1.6 percent.
Hotel Rate Growth Is More Controlled in the Gulf
The outlook across the Middle East and Africa is more mixed. Hotel rates in Dubai are expected to rise by between 1 percent and 2 percent in 2027. Riyadh’s forecast ranges from 1.5 percent to 3.2 percent, while Abu Dhabi is expected to see growth of between 1.7 percent and 4.1 percent. Johannesburg stands out with a forecast increase of between 4.6 percent and 7.3 percent.
Amex GBT notes that geopolitical developments affecting demand in the Gulf could give corporate buyers stronger negotiating power in some markets.
City-Level Planning Will Become More Critical
The 2027 forecasts suggest that national or regional averages are becoming less sufficient for corporate travel budgeting. Higher hotel rate increases are expected in markets such as São Paulo, Buenos Aires, Madrid and Seoul, while more moderate growth is forecast in major business travel hubs such as Seattle, Singapore and Dubai.
This divergence will require companies and event organisers to prepare budgets in greater detail. Early booking, negotiated hotel agreements, alternative city options and destination selection could become more important factors in corporate travel and event budgets in 2027.
