Canadian Hotel Rate Growth to Ease in 2027
Major cities across Canada will see hotel price increases slow to under three per cent in the upcoming year.
Updated on Oct. 15, 2026 in Hotels
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American Express Global Business Travel projects that hotel rate growth across Canada will moderate to less than three per cent in 2027. This cooling trend follows several years of steady price increases in major urban centres.
Why it matters
The forecast suggests that healthy hotel inventory and steady demand are balancing pricing pressure in the Canadian market. Companies continue to prioritize talent strategy and traveller experience, with many employees now opting for premium accommodations.
Hotel rates in Toronto are expected to rise between 0.5 per cent and 1.9 per cent in 2027, following a 5.8 per cent increase forecast for 2026. Additionally, 58 per cent of travellers now select superior or luxury rooms, a four percentage point increase over the prior year.
The players
American Express Global Business Travel
This company provides travel management services and publishes regular industry forecasts for business travellers.
The details
Corporate travel policies are increasingly supporting premium accommodation as firms focus on employee experience. While growth in cities like Calgary, Montreal, Ottawa, Toronto, and Vancouver will remain modest, some international destinations like Sao Paulo are projected to see increases as high as 12.2 per cent.
Timeline
In 2024, Toronto hotel rates rose 6.7 per cent.
In 2025, Toronto hotel rates rose 3.1 per cent.
In 2026, Toronto hotel rates were forecast to rise 5.8 per cent.
In 2027, Canadian hotel rate growth is expected to ease.
Travel Outlook
The projected 2027 figures mark a departure from the sharp increases documented in the historical trend of Canadian hotel pricing from 2024 to 2026. This stabilization reflects broader tourism cycles where supply and demand are currently finding a more sustainable equilibrium.
Business travellers can expect more predictable budgeting for accommodation in major Canadian cities throughout 2027. Those booking trips should remain aware that luxury and superior rooms are seeing higher demand, which may affect availability regardless of overall price trends.
The takeaway
Travellers should note that while rate growth is cooling, the shift toward premium room selection continues to shape hotel inventory. Employers and employees should account for this preference for luxury accommodation when setting corporate travel budgets.
Further reading
For more information on the industry, visit Canada Hotels.
Source note: This article includes information reported by Hotelier Magazine.
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