Hotel rates set to rise moderately in 2027

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Photo by Nick Kozak/PostmediaHotel 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).THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountOn its consumer hotel monitor, American Express GBT said the new forecast points to a very different picture depending on where Canadians are travelling.This advertisement has not loaded yet, but your article continues below.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.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe 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.This advertisement has not loaded yet, but your article continues below.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.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.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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