With prices set to moderate – at least, compared to the steep rises we’ve seen since 2022 – has global hospitality reached a turning point?
Oct 23, 2024
The forecasts come from the American Express Global Business Travel (Amex GBT) consulting team, as detailed in their Hotel Monitor 2025 report. The report provides insights for more than 80 major cities based on hotel transaction data and a range of local and global economic factors, including IMF data.
Key takeaways
- While inflation has been a key driver of hotel price increases since 2022, it is now expected to ease. The IMF projects global inflation to fall from 5.9% in 2024 to 4.5% in 2025;
- Labor shortages continue to impact the global hospitality industry, increasing operating costs. By mid-2024, more than 75% of U.S. hotels were understaffed, while the EU faces a 10-20% labor shortage in the hotel sector;
- Hotel construction is booming worldwide. Lodging Econometrics (LE) forecasts that 2,534 new hotels with 372,686 rooms will open worldwide in 2024, followed by another 2,756 in 2025. The U.S. and China will lead the way, with significant growth also expected in India, Canada and Saudi Arabia. Luxury and upscale projects are particularly attractive to investors.
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