The average global hotel prices increased by 7.17% year-on-year to reach $189 per night, according to new data from HotelHub.

Analysts said the rise follows a period of relative stability in 2025 and reflects shifting geopolitical conditions and changes in global trade policies.

Europe Records Strongest Price Growth

Europe experienced the steepest increase in hotel prices, with average room rates climbing 13.88% to $175 per night.

Several major business travel destinations recorded even sharper increases. Hotel prices in Milan rose by 29.29%, while Stockholm saw a 22.11% increase and Amsterdam recorded growth of 18.62%.

US Hotel Prices Continue Rising

In the United States, average hotel rates increased by 7.61% to $226 per night.

However, booking volumes across the country declined by nearly 12%, resulting in estimated hotel revenue losses of more than $27 million.

Business Travellers Maintain Comfort Standards

Despite higher prices, business travellers continue to prioritise established comfort levels, according to the report.

The share of bookings at five-star hotels increased to 12.13%, while demand for four-star and three-star properties remained stable at around 45% and 38% respectively.

Travellers are instead adjusting other aspects of their trips to manage costs. The average length of stay declined from 2.5 days to 2.43 days, helping limit growth in average booking expenses to 4.62%.

Middle East Conflict Impacts Demand

The report also highlighted the impact of the conflict in the Middle East on regional travel demand.

Hotel bookings in the United Arab Emirates fell by almost 77% in March compared with the same period last year.

At the same time, other markets recorded growing demand, including Canada with a 5.16% increase in hotel bookings, Australia with 4.3% growth and China with a 4.2% rise.