A new Amex Global Business Travel report shows moderating hotel rates. But planners still face a seller’s market in popular meeting destinations.
The hotel landscape is changing in significant ways, says the Amex GBT Hotel Monitor 2025. Yes, rates are still rising—but not as steeply. Inflation, an important part of hotel price rises since 2022, now looks to be lessening. The IMF (International Monetary Fund) has predicted that global inflation should decline steadily, from 5.9% in 2024 to 4.5% in 2025.
As well, said Sara Andell, Director of Strategy GBT Consulting in the report, leisure demand—always an upward influence on business travel rates—shows signs of abating. And record levels of hotel construction are feeding more rooms into the supply chain, particularly with luxury and upper-upscale hotels. Global hotel construction is at an all-time high, with Lodging Econometrics (LE) reporting record levels of development around the world. In total, LE forecasts 2,534 new hotels with 372,686 rooms will open worldwide this year. A further 2,756 new hotels are expected for 2025. The bulk (64 percent) of developments are in the U.S. and China, with India, Canada and Saudi Arabia also expected to see record levels of hotel development. But, Andell cautioned, “Hotels continue to be squeezed by higher-than-inflation costs for key inputs, including labor.”
What the changing hotel landscape means for MICE budgets partly depends on location. The Amex GBT Hotel Monitor predicts moderate price rises across North America, with higher increases in hotspots like New York. Room rates in Latin America are expected to match the global pattern of slightly above inflation increases. In Europe, popular meeting and incentive destinations such as London, Paris and Barcelona will continue to see higher room rates. New hotel openings in Australia and New Zealand are boosting supply, but a busy calendar of cultural and sporting events in Australian cities will drive price increases there. In Asia, India’s booming economy and Japan’s tourism surge will drive strong increases in room rates, while other countries see inflation-level uplifts.
In light of the still-challenging hotel marketplace for meetings, “In 2025, we expect to see meetings professionals looking to emerging destinations and alternative event spaces for unique opportunities to create engaging experiences,” said Emma Bason, Director Global Venue Sourcing, Amex GBT Meetings & Events.
Hospitality experts cited in the report are bullish about the MICE market in 2025. Group travel will remain strong, said Jess Petitt, Hyatt SVP Strategic Insights and Analytics, “driven by an increase in the number of smaller meetings, off-site team gatherings and incentive travel.” Noted Betty Wilson, VP Global Accounts, Global Sales, IHG, “Cutting-edge companies are investing not only in tech, but in meaningful human connections that travel enables—fostering deeper customer relationships, enhancing organizational culture and facilitating impactful meetings and events.”
You May Also Be Interested In…
Now Trending: Optimism About Meetings Industry
Amex GBT: Here’s What’s Trending
Meeting Costs to Increase in 2025, Report Says