The report predicts the future hotel cost landscape based on data from Amex GBT alongside GDP and inflation forecasts from the International Monetary Fund.
The majority of predicted price rises mentioned in the report sit below five per cent, although there are some destination outliers.
The report also warns luxury properties may see larger rate rises.
The Hotel Monitor attributes the minimal rate rises to geopolitical instability and uncertainty over potential US tariffs.
In addition, the report flags a trend in meetings and events towards Instagram-friendly venues, with social media visibility sometimes influencing preferences and event clients demonstrating greater awareness of specific properties.
In North America, Toronto, Canada has the largest forecast rise at 5.8 per cent, while hotel rates in Mexico City are expected to rise just two per cent. San Francisco and New York are forecast to see four per cent increases, while Washington DC sits below that at three per cent, alongside Las Vegas. Los Angeles hotel rates are expected to go up by 2.2 per cent, while Chicago rates are anticipated to rise by 4.2 per cent.
Larger rises are expected in some cities across Latin America, with Buenos Aires tipped to see rate rises of 5.6 per cent, while Rio De Janeiro has a five per cent rate rise forecast. In contrast, hotel prices in Santiago are anticipated to rise less than one per cent.
In Europe, Amsterdam is an outlier, with hotel rates expected to be 11 per cent higher as the Dutch government rolls out a 12 per cent tax increase on short term accommodation. More significant rate rises are also predicted for Barcelona and Milan – both 5.1 per cent – while price rises in London are expected to be 4.2 per cent, with high demand offset by a strong hotel development pipeline, comprising 80 projects and nearly 15,000 rooms.
In the Middle East and Africa, rate rises are forecast to be generally small with the highest rise in the Middle East to be Abu Dhabi at 3.1 per cent, while Cape Town, South Africa, could see more significant rate hikes of 4.7 per cent.
Looking more locally at Asia Pacific, with the exception of India, rate rises are expected to be low, especially in China. In Shenzhen, rates are forecast to be flat, while rates in Shanghai are only anticipated to rise 0.4 per cent. Hotel rates in Guangzhou are also expected to climb less than one per cent, while rates in Beijing are forecast to jump slightly more, by 1.5 per cent.
In India, price rises in cities like Delhi and Bengaluru are tipped to rise by more than six per cent – 6.8 per cent and 6.4 per cent respectively – while rates in Mumbai and Hyderabad are expected to be up by more than five per cent.
In Australasia, hotel rates in Auckland are anticipated to climb by two per cent, while Sydney’s hotel rates are predicted to climb by just 1.5 per cent.
“As the data shows, in today’s volatile world, the news cycles impact hotel prices in often unpredictable ways,” said Amex GBT’s vice president of global hotel, Simon Fishman.
