TORONTO — The latest report from Amex GBT suggests global hotel rate increases will moderate in 2025.

Hotel prices around the world are set to increase again in 2025 but at a slower rate than seen in previous years, according to the latest Hotel Monitor report from American Express Global Business Travel.

The report, which forecasts average hotel rates in 80 major cities around the world, predicts that prices will ‘stabilize’ next year thanks in part to a record number of new properties and an easing in inflationary pressures on hotels.

In North America, New York is likely to see the highest increase in hotel prices in the region at 4.7%, followed by Mexico City (+4.5%) and Las Vegas (+4.2%).

Prices in Calgary and Montreal are forecast to rise +3.2%, Ottawa and Toronto +3.1%, and Vancouver having the smallest increase of North American cities (+2.9%).

New York continues to experience higher rate rises partly because of the continued block on the use of short-term rental accommodations.

Globally, cities in India, the world’s fastest growing economy, are predicted to see some of the largest increases in hotel rates in 2025, with 8.5 to 9% rises for cities such as Mumbai and Delhi. Some African destinations are expected to see double-digit rate increases, including Lagos in Nigeria (+13.4%) and the Egyptian capital Cairo (+11.9%) due to high levels of inflation in these countries.

 By comparison, China’s main destinations are forecast to have much lower increases including Beijing (+2%) and Shanghai (+1.6%).

Similar to North America, most of the major European cities are set for average hotel rate increases of less than 5%. 

The study also indicates that while the International Monetary Fund (IMF) expects global inflation to fall in 2025, hotel rates are likely to stay high due to labour shortages and rising wages. Supply is boosted by a boom in global hotel construction, with new developments concentrated in the US, China, Canada, India, and Saudi Arabia.

Specific to Canada the global report states that “the country has a healthy hotel construction pipeline, seeing a 54% year-on-year increase in projects under construction” with “26 new hotel openings in 2024 and a further 37 in 2025.”

TRENDS & INSIGHTS

Amex GBT’s Hotel Monitor report also looks at how technology is transforming hotel operations and guest experiences, helping hotels manage labour shortages.

AI-powered tools streamline tasks like room assignments, allowing staff to focus on guest service, while smart room technology enables travellers to tailor the in-room environment to their needs and preferences.

Sustainability is another key focus, with access to the relevant data now essential to meeting both traveller and corporate sustainability goals.

The report also notes that extended-stay properties are growing in popularity, with apartment-style hotels popping up more and more. It’s a trend spread across the world and especially booming in Asia, reflecting demand for flexibility and longer trips.

“Stabilization in the travel marketplace is good news for customers,” says Dan Beauchamp, VP Consulting at Amex GBT, “but prices remain high. Travel buyers can benefit from creative sourcing strategies, such as negotiating multiple room types, keeping an open mind on dynamic rates and using TMCs’ negotiated rate programs to boost coverage in secondary and tertiary cities.”

For more insights from Amex GBT’s Hotel Monitor 2025 report, click here.