Hotel rates are forecasted to climb in 2027 as costs continue to rise, but that rate growth is expected to ease across major Canadian cities , according to a report by American Express Global Business Travel (Amex GBT).
On its consumer hotel monitor, American Express GBT said the new forecast points to a very different picture depending on where Canadians are travelling .
Increases are expected to be less than three per cent across major Canadian cities – Calgary, Montréal, Ottawa, Toronto and Vancouver – next year, a comparatively moderate outlook compared to international destinations .
The report said healthy hotel inventory and steady demand are expected to limit significant pricing pressure, with no major supply constraints or demand spikes forecast.
Toronto has the lowest forecast of hotel rate increases among the five Canadian cities, with rates expected to rise between 0.5 per cent and 1.9 per cent in 2027, a significant change from recent forecasts of 5.8 per cent in 2026, 3.1 per cent for 2025 and 6.7 per cent for 2024.
Elsewhere in Canada, Montréal and Vancouver sit toward the lower end of the 2027 outlook, while Calgary and Ottawa have the highest forecasts among the five Canadian cities tracked.
Amex GBT said the more moderate pricing outlook comes as travellers continue to favour higher-end accommodation . Its report said 58 per cent of travellers now choose superior or luxury rooms over standard rooms, up four percentage points year-over-year.
The outlook for Canadian cities contrasts sharply with some international destinations with substantially greater rate growth, such as 12.2 per cent in São Paulo, 9.2 per cent in Madrid, 8.7 per cent in Buenos Aires and 7.1 per cent in Mexico City.
"The differences reflect an uneven global hotel market," the report said.
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Resilient corporate travel and persistent inflation are expected to continue to put upward pressure on rates across much of the Americas and Europe, while supply, demand and economic conditions vary considerably by destination, the report said.
"This year's forecast reveals a nuanced global environment where geopolitical uncertainties and commodity price volatility are shaping hotel rates in different ways across regions," said Sara Andell, director of consulting strategy at Amex GBT Consulting.
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