Global hotel rates are expected to rise in 2025, but with more moderate price increases when compared to recent years, according to the recent Amex Global Business Travel Hotel Monitor 2025 report.

The report, which predicts the hotel economy in 80 cities around the world, expects next year to see an easing of leisure travel demand and a surge in new hotel construction. Over 2,700 new hotels are expected to open across the globe in 2025.?

While global inflation is expected to decrease from 5.9 percent to 4.5 percent next year, easing the increase in hotel rates, they¡¯ll still remain elevated due to several factors. One is the need for hotel employees continuing to drive up costs for hotels from the U.S. to Europe.?

¡°Hotels continue to be squeezed by higher-than-inflation costs for key inputs, including labor, said Sara Andell, Director of Strategy, Amex GBT Consulting. ¡°But the landscape is changing in significant ways. Leisure demand ¨C so long an upward influence on rates ¨C shows signs of abating. Record levels of hotel construction are feeding more rooms into supply.¡±

Yet some cities and regions are expected to continue the high rate growth: New York is expected to see higher rates than the rest of North America (at 4.7 percent), while cities in the Nordic countries are expected to have higher room rate rises in Europe. The report also predicts Istanbul to have the highest increase, at 9.2 percent. India will see the highest increases in Asia.?

¡°Stabilization in the travel marketplace is good news for customers, but prices remain high, and challenges persist for companies managing a cost-effective corporate hotel program," Dan Beauchamp, vice president, consulting at Amex GBT, said in a statement to Hotel Management.?

¡°Data-driven decision-making is essential for smarter hotel sourcing, as is effective communication ¨C maintaining open, ongoing dialogues to build stronger relationships with suppliers,¡± continued Beauchamp. ¡°Travel buyers can benefit from creative sourcing strategies, such as negotiating multiple room types, keeping an open mind on dynamic rates, and using TMCs¡¯ negotiated rate programs to boost coverage in secondary and tertiary cities.¡±

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