Amex GBT 2025 Hotel Monitor: How much have house prices increased?

A new American Express Global Business Travel report shows hotel prices have slowed. But planners still face a seller’s market in the popular convention destination.

The hotel landscape is undergoing major changes. Amex GBT Hotel Monitor 2025. Yes, interest rates are still rising, but not as much. Inflation has been a significant component of hotel price increases since 2022 and appears to be slowing. The IMF (International Monetary Fund) predicts that global inflation will steadily decline, from 5.9% in 2024 to 4.5% in 2025.

Sara Andell, strategy director at GBT Consulting, said in the report that leisure demand – which has been an upward influence on business travel prices – is also showing signs of weakening. Record levels of hotel construction are feeding the supply chain with more rooms, especially in luxury and upscale hotels. Global hotel construction is at an all-time high, Lodging Econometrics (LE) reports. LE expects to open 2,534 new hotels globally this year with a total of 372,686 rooms. It is expected that 2,756 new hotels will be added by 2025. The majority (64%) of these developments are located in the United States and China, with record levels of hotel development also expected in India, Canada and Saudi Arabia. However, Andel warned that “hotels continue to be squeezed by above-inflation costs of key inputs, including labor.”

What the changing hotel landscape means for MICE budgets depends in part on location. The Amex GBT Hotel Monitor predicts modest price increases across North America, with larger increases in hotspots such as New York. House prices in Latin America are expected to match the global growth pattern of slightly above inflation. In Europe, house prices will continue to rise in popular MICE destinations such as London, Paris and Barcelona. New hotel openings in Australia and New Zealand are increasing supply, but busy cultural and sporting events in Australian cities will drive prices there. In Asia, India’s booming economy and a surge in tourism in Japan will drive strong house price gains, while inflation rises in other countries.

Given that the convention hotel market remains challenging, “through 2025, we expect convention professionals to look to emerging destinations and alternative event spaces for unique opportunities to create engaging experiences,” said Emma Bason, Director of Global Venue Procurement at Amex GBT Meetings and Activity.

Hotel experts cited in the report are optimistic about the MICE market in 2025. Jess Petitt, Hyatt’s senior vice president of strategic insights and analytics, said group travel will remain strong, “driven by an increase in the number of smaller meetings, off-site team gatherings and conferences.” Incentive travel. “Betty Wilson, vice president of global sales for IHG, noted, “Cutting-edge companies are investing not just in technology, but in the meaningful human connections that travel brings—cultivating deeper customer relationships and enhancing organizational culture. and facilitate impactful conferences and events. ”

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