Global hotel pricing is expected to stay largely steady through 2026, as geopolitical instability and concerns over potential U.S. tariffs temper demand and hold back sharp rate hikes, according to the latest “Hotel Monitor 2026” from American Express Global Business Travel (Amex GBT).
The annual forecast, which analyzes Amex GBT data alongside International Monetary Fund economic outlooks, suggests that while most business travel destinations will see only modest increases next year, high-end accommodations are set to buck the trend. Demand for premium stays is projected to continue climbing, fueling above-average rate growth in luxury segments.
Regional Standouts
Across the Americas, New York is forecast to see a 4 percent rise in hotel rates compared to a 3 percent gain in Miami, 5.8 percent in Toronto and 2 percent in Mexico City. South America shows sharper increases, led by Buenos Aires at +5.6 percent.
Europe’s pricing outlook is also moderate. London is projected to increase 4.2 percent, Paris 2.6 percent and Madrid 4.8 percent. Development pipelines will play a role in softening the pace of growth thanks to new supply: London has 80 projects representing nearly 15,000 rooms in the works, while Riyadh leads the Middle East with more than 17,000 rooms planned.
In Asia-Pacific, the picture is mixed. Room rates in Hong Kong are forecast to decline by 1.2 percent, while Beijing and Sydney are expected to see hotel rates inch up 1.5 percent each. India continues to stand out, with Bengaluru predicted to climb 6.4 percent, the sharpest increase of any city listed. The tech hub is also notable for posting the country’s highest occupancy and average daily rates in the first quarter of 2025.
Meetings & Events Shifts
Amex GBT also pointed to evolving priorities in the meetings sector.
Wellness, inclusivity and accessibility are increasingly shaping venue sourcing, alongside demand for “wow factor” locations that play well on social media. Requests for plant-based and gluten-free menus, as well as culturally sensitive catering, are growing.
Industry Perspective
“This year’s forecast reveals a nuanced global environment where geopolitical uncertainties are tempering hotel rate increases,” Dan Beauchamp, vice president, consulting at Amex GBT, said in a statement. “Understanding local market conditions will help companies optimize their travel budgets and strategies.”
Simon Fishman, vice president, global hotel at Amex GBT, added that volatility means rates can be swayed quickly: “As the data shows, in today’s volatile world, the news cycles impact hotel prices in often unpredictable ways.”
Amex GBT says its hotel marketplace provides access to more than two million properties in 180 countries, including 45,000 with pre-negotiated, business-friendly discounts through its Preferred Extras Hotel Program.