Global hotel rates set for modest growth in 2026

Geopolitical factors and regional economic conditions influencing it

Global hotel rates are expected to remain relatively stable through 2026, with geopolitical instability and uncertainty surrounding potential US tariffs limiting demand and restricting big price increases.

The Hotel Monitor 2026, is produced by American Express Global Business Travel (Amex GBT), and is an annual forecast of global hotel rates in key business travel destinations across the world.

Despite a more moderate outlook for next year, Amex GBT’s consulting team predicts continued rises in rates for high-end accommodation, due to growing demand.

The forecasting is based on analysis of company data, combined with inflation and GDP forecasts from the International Monetary Fund (IMF). 

Forecast summaries include London up 4.2%, Paris up 2.6% and Madrid up 4.8%. Sydney is up 1.5% while Dubai is up 2% and Riyadh 2.3%.

The report provides further analysis of key cities and countries, exploring the underlying factors driving the predictions. For London and Riyadh, the upcoming hotel development projects in both cities will continue to improve supply, tempering rates despite strong demand. 

London leads Europe with 80 projects and nearly 15,000 rooms on the way, while Riyadh tops the Middle East with more than 17,000 rooms in development.

India remains the country to watch in 2026. Amex GBT anticipates another year of strong rate growth; while not reaching the level of last year’s increases, price rises will outstrip regional and global averages. 

The city of Bengaluru, which is one of the world’s leading technology and AI hubs, is a notable mention; in the first quarter of 2025, it achieved the country's highest occupancy and average room rate.

Amex GBT Meeting & Events finds changing attendee preferences influencing venue sourcing and meeting strategies. 

These include show-stopper venues, popular on social media, to create more memorable events. 

Wellness, accessibility, and inclusivity are growing in importance, with more requests for specialized dietary options such as plant-based and gluten free food, as well as cultural accommodations.

Dan Beauchamp, vice president, consulting of Amex GBT, said: “This year’s forecast reveals a nuanced global environment where geopolitical uncertainties are tempering hotel rate increases. 

"These insights allow businesses to make more informed travel decisions in an increasingly complex landscape. Understanding local market conditions will help companies optimize their travel budgets and strategies.”

Simon Fishman, vice president, global hotel of Amex GBT, added: “As the data shows, in today’s volatile world, the news cycles impact hotel prices in often unpredictable ways. 

"Amex GBT’s hotel marketplace gives companies more flexibility and choice, providing access to more than two million properties across 180 countries, as well as over 45,000 hotels with pre-negotiated, business-friendly discounts and amenities via the Preferred Extras Hotel Programme. 

"We’re enabling companies of all sizes to quickly adapt to changing business needs while accessing the best rates and traveler experiences.”