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 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 per cent, 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 suggests 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.”
