TORONTO — Hotel rates are expected to rise globally in 2027, but increases across Canadian markets are forecast to remain below 3%, according to American Express Global Business Travel’s (Amex GBT) Hotel Monitor 2027.

In Canada, healthy hotel inventory and steady demand are expected to limit significant pricing pressure. Calgary and Ottawa are forecast to see increases of 1.9% to 2.9%, while Vancouver’s rates are expected to rise between 1.4% and 2.5%. Montréal is forecast at 0.5% to 2.2%, while Toronto is expected to see increases of 0.5% to 1.9%.

VARIED PRESSURES GLOBALLY 

São Paulo leads the cities tracked, with rates projected to rise between 10.9% and 12.2%, driven in part by demand from Brazil’s expanding oil and gas sector. Buenos Aires is forecast to see increases of 8.1% to 8.7%.

In Europe, Madrid is expected to record increases of 6.1% to 9.2%, while London’s rates are forecast to rise between 3.6% and 5.4%. Paris is projected to see increases of 3.1% to 4.8%.

Dubai’s rates are forecast to rise between 1% and 2% in 2027. The report says the conflict deterred visitors during the first half of 2026, contributing to a sharp drop in hotel occupancy. Hoteliers are expected to offer competitive rates to attract visitors back as the geopolitical situation resolves.

For the first time, Amex GBT is presenting its hotel rate forecasts as ranges rather than single figures, reflecting price volatility.

“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.”

To read the full report, click here.