Canadian hotel rates are projected to climb faster than those in the United States and most other major global markets in 2026, according to the latest “Hotel Monitor 2026” from American Express Global Business Travel (Amex GBT). The study, which draws on Amex GBT data and economic outlooks from the International Monetary Fund, highlights Canada as a key outlier amid a backdrop of generally stable global hotel pricing.
Geopolitical Instability Tempers Global Growth
World hotel rates are expected to remain relatively steady in the coming year as geopolitical disruptions and uncertainty surrounding potential US tariffs limit demand and restrict sharper price increases. In North America, the report says uncertainty over US tariffs could impact hotel rates, but US markets such as New York (+4%), Miami (+3%), Las Vegas (+3%), and Mexico City (+2%) are only set for moderate growth, especially with a projected downturn in inbound travel.
Canada Forecast to See Steepest Price Rises
Canada, however, stands apart. Toronto’s hotel rates are forecast to rise as much as 5.8%, driven by strong domestic travel and a tight hotel room supply, even as new developments open up. Vancouver is expected to post an even steeper jump of 6.2%, while Montreal’s rates are forecast to increase 1.8%. These increases outpace those in comparable US cities and reflect Canada’s sustained travel demand.
Luxury Segment Leads the Surge
High-end hotel properties in particular are expected to see the strongest increases, led by the robust spending of affluent leisure travellers. “Luxury could buck the stability trend, as affluent leisure travellers continue to spend, pushing up rates for top-tier accommodation,” noted Sara Andell, Director of Consulting Strategy at Amex GBT. Corporate travel buyers relying on luxury and upper-upscale hotels could thus face significantly higher costs.
Comparative Global Outlook
Across Europe, forecasted hotel rate increases include London (+4.2%), Paris (+2.4%), and Madrid (+4.8%), with London’s extensive hotel pipeline expected to moderate even sharper growth. In Asia, Hong Kong is actually forecast to see a decrease (–1.2%), while Beijing rises 1.5%. India remains a growth leader, with Bengaluru projected at a sharp 6.4% gain in rates. Other notable increases include Buenos Aires (+5.6%) and Rio de Janeiro (+5%) in Latin America; Riyadh (+2.3%) and Dubai (+2%) are expected to see moderate growth, held in check by substantial new development.
Travel Planners Take Note
The forecast highlights the need for proactive corporate travel planning, particularly in high-demand Canadian markets and among premium hotel categories. “These insights allow businesses to make more informed travel decisions in an increasingly complex landscape,” said Dan Beauchamp, Amex GBT Vice President for Consulting. Travellers and planners are advised to closely monitor cities facing steeper increases and anticipate upward pressure in the luxury segment through 2026.
