Hotel Monitor 2026: Global Rates to Rise Slightly Amid Uncertainty

North America

In North America, hotel rates are anticipated to climb gradually. Potential US tariffs could affect pricing, with food and beverage costs possibly increasing by 2.6%. Major cities such as New York and Toronto may experience notable rate rises of 4.0% and 5.8%, respectively. Despite robust hotel construction in Mexico, international demand is expected to keep rates in check.

Latin America

Latin America’s hospitality sector is set for growth in 2026, with room rates rising across the region. Buenos Aires, recovering from a recession, is projected to see a 5.6% increase, while Rio de Janeiro may experience a 5.0% rise. The region’s strong hotel construction pipeline is likely to support this positive trend.

Europe

Europe’s hotel rates are expected to remain relatively stable, supported by modest economic growth. However, tax adjustments and short-term rental regulations could impact pricing in select cities. Amsterdam may see an 11% increase due to VAT changes, while London is considering a tourist tax to manage visitor flows.

Middle East and Africa

In the Middle East, ongoing hotel developments may temper rate growth, particularly for luxury properties. Riyadh could see a 2.3% rise in hotel rates. In Africa, Cape Town may experience higher rates due to strong occupancy and limited secure hotel options.

Asia-Pacific

India is expected to lead growth in the Asia-Pacific region, with Delhi and Bengaluru projected to see rate increases of 6.8% and 6.4%, respectively. China may experience moderate growth, with some cities like Guangzhou and Shanghai seeing slight declines. Meanwhile, Japan’s resilient leisure demand, especially from Chinese travelers, is expected to support rate growth.

Overall, the Hotel Monitor 2026 report points to a period of steady, modest growth in global hotel rates. While some regions may see sharper increases, the general outlook indicates stability in the coming years.