Photo Credit: AdobeStock/Pixels Hunter
Hotel rates across Asia-Pacific (APAC) are expected to rise in 2027, but the region is shaping up as one of the world’s most uneven hotel markets, with strong increases forecast in Seoul and India while supply pressure keeps growth muted in parts of China and Singapore.
American Express Global Business Travel’s (Amex GBT) Hotel Monitor 2027 forecasts hotel rates in key APAC business destinations using ranges for the first time, reflecting uncertainty around geopolitics, inflation and commodity prices. The report is based on Amex GBT data combined with International Monetary Fund inflation and GDP forecasts, using Prophet time-series modelling.
APAC forecasts a mixed bag
Seoul is forecast to record the region’s strongest increase, with hotel rates expected to rise between 4.3% and 6.4% year on year. India is also set for continued rate growth, although at a slower pace than in recent years. Bengaluru is forecast at 5% to 5.5%, while Delhi is expected to rise 4.5% to 5%.
Amex GBT identifies India as a market to watch as additional hotel supply comes online. The expanding presence of global hotel chains is improving the quality and availability of rooms, which is expected to moderate the sharp rate increases seen in recent years.
Elsewhere, Sydney is forecast to see rates rise 3.5% to 5%, with demand expected to be supported by the Men’s Rugby World Cup from October 2027. Amex GBT expects the tournament to bring around 250,000 international visitors, with host cities including Sydney, Melbourne and Perth potentially seeing increased accommodation demand.
China presents a markedly softer picture. Hotel rates are forecast to see flat to moderate growth in major business cities as room supply continues to outpace demand. Beijing is forecast to rise 1.9% to 3%, while Guangzhou could see rates range from a 0.3% decline to a 0.8% increase. Hong Kong is forecast at 0.2% to 1.1%.
Singapore is also expected to see relatively modest growth, with hotel rates forecast to increase 0.8% to 1.6% in 2027. Despite strong business, tourism and meetings demand, Amex GBT says rising airfares are putting pressure on inbound travel budgets. Airfares were up 15% year on year in mid-2026, with increases on some Asia routes reaching as much as twice that level.
Question ‘where’, not ‘what’
The higher cost of flying has not, however, translated into a broad shift towards lower-tier hotels. Amex GBT says corporate travellers in APAC continue to favour higher-tier accommodation, even as travel budgets come under pressure. The consultancy expects the higher air costs to influence where and how businesses travel across the region rather than simply prompting travellers to trade down on hotel quality.
The wider APAC picture contrasts with stronger price growth forecast in parts of Europe and Latin America. Madrid is forecast to rise as much as 9.2%, while São Paulo could see rates increase by up to 12.2%. In the Gulf, meanwhile, the ongoing Middle East conflict has weighed on demand, with Dubai forecast to see only 1% to 2% rate growth in 2027.
Real effects of AI
The report also points to artificial intelligence as an emerging factor in hotel sourcing. Hotels are increasingly using agentic AI for revenue management and rate setting, while travel managers are adopting AI-enabled sourcing tools to assess pricing and negotiate rates.
As a result, Amex GBT says hotel sourcing is shifting from an annual exercise towards a more continuous process – particularly as buyers contend with markets where hotel pricing, airfares and demand are moving at different speeds.
Reading forecast range
For the first time, Amex GBT has presented its 2027 forecasts as ranges rather than single-point estimates. It recommends using the lower end of the ranges if the Middle East conflict persists or global inflation remains around the IMF’s July 2026 forecast of 4.7%. The upper end becomes more applicable if inflation rises beyond that level.
Source: Travel Weekly Asia