Hotel rates are expected to increase in 2027, but a new report finds price hikes will differ in cities across Canada and international destinations.
Increases are expected to remain below three per cent across major Canadian cities, but could climb by as much as 12 per cent in some international destinations, according to the Hotel Monitor 2027 report from American Express Global Business Travel.
In Toronto, rates are expected to increase by 0.5 per cent and 1.9 per cent in 2027, the report found.
Elsewhere in Canada, Montréal and Vancouver sit toward the lower end of the 2027 outlook, while Calgary and Ottawa have the highest forecasts among the five Canadian cities tracked.
Healthy hotel inventory and steady demand are expected to limit significant pricing pressure, with no major supply constraints or demand spikes forecast, the report found.
Canadians travelling abroad, however, could face substantially greater hotel rate increases in some destinations.
Hotel Monitor 2027 forecasts rates could rise as much as 12.2 per cent in São Paulo, 9.2 per cent in Madrid, 8.7 per cent in Buenos Aires and 7.1 per cent in Mexico City. London, Tokyo and Paris could see increases of up to 5.4 per cent, 4.9 per cent and 4.8 per cent, respectively.
2027 Canadian hotel rate outlook Canada and key global markets:
Chart: American Express Global Business Travel
Not every international destination is facing significant increases. The conflict in the Middle East weakened demand in Dubai during the first half of 2026, contributing to a sharp drop in hotel occupancy. Rates are forecast to rise by one to two per cent in 2027, with Amex GBT expecting Dubai hoteliers to offer compelling rates to attract visitors back.
For the first time, Amex GBT is presenting its 2027 hotel rate forecasts as ranges rather than single figures, reflecting geopolitical uncertainty and commodity price volatility, the company said.
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The differences reflect an uneven global hotel market, Amex stated. Resilient corporate travel and meetings demand and persistent inflation are expected to continue putting upward pressure on rates across much of the Americas and Europe, while supply, demand and economic conditions vary considerably by destination, the report found.
“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.
See the full report here.
Lead photo: Mikhail Nilov
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