Global hotel rates are forecast to continue rising in 2025, but price increases will moderate compared with the steep rises of recent years, thanks to easing leisure travel demand and a surge in new hotel construction, according to research from American Express Global Business Travel (Amex GBT).
Amex GBT’s Hotel Monitor 2025 offers detailed predictions for more than 80 major cities worldwide, analyzing hotel transaction data and factoring in local and macroeconomic variables including International Monetary Fund (IMF) data. Forecasts for hotel rate increases in key business travel destinations include New York (up 4.7%), Las Vegas (up 4.2%), Vancouver (up 2.9%), Mexico City (up 4.5%), Rio de Janeiro (up 5.2%), London (up 3.6%), Paris (up 4%), Brussels (up 3.6%), Berlin (up 3%), Stockholm (up 5.6%), Madrid (up 3.6%), Rome (up 2.9%), Hong Kong (up 3.8%), Delhi (up 9%) and Hanoi (up 4.7%).
While price rises are mostly moderate across the globe, there are some noteworthy exceptions:
- New York continues to experience higher rate rises than the rest of North America, in part because of the continued block on the use of short-term rental accommodations.
- Cities in the Nordics are anticipated to see some of the highest room rate rises in Europe, as the region looks forward to improved economic prospects in 2025.
- India’s dynamic economy is fueling demand for domestic and international inbound travel, putting upward pressure on hotel rates.
Dan Beauchamp, vice president, consulting at Amex GBT, said: “Stabilization in the travel marketplace is good news for customers, but prices remain high, and challenges persist for companies managing a cost-effective corporate hotel program.”
Travel buyers, said Beauchamp, 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.
Key trends identified in Hotel Monitor 2025 include:
- While the International Monetary Fund expects global inflation to fall in 2025, hotel rates are likely to stay high due to labor shortages and rising wages. Supply is boosted by a boom in global hotel construction, with new developments concentrated in the US, China, India, Canada and Saudi Arabia.
- Technology is transforming hotel operations and guest experiences, helping hotels manage labor shortages. AI-powered tools streamline tasks like room assignments, allowing staff to focus on guest interactions. Smart room technology is enabling travelers to tailor the in-room environment to their needs and preferences.
- Guests now see rooms as personalized retreats, driving demand for custom features and wellness options. Hotels are responding with offerings such as in-room fitness equipment and workout clothes.
- Sustainability is another key focus, with access to the relevant data now essential to meeting both traveler and corporate sustainability goals.
- Extended-stay properties are growing in popularity, especially in Asia, reflecting demand for flexibility and longer trips.
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