Average room rates (ARR) in North America saw the highest regional increase globally in 2025, up 16% year over year to $291, according to the latest Global Hotel Insights Report from FCM Consulting, a division of FCM Travel.
In a corporate travel environment influenced by geopolitical tensions and shifting economic policies, said the report, organizations continue to face pressure to balance cost control, traveler expectations and supplier availability.
ARR globally trended higher in 2025, reaching $208, up $18 over the previous year, reflecting sustained demand and continued pricing pressure, according to the report. At the city level, the strongest percentage growth was seen in Ottawa (up 63%), Dallas (up 29%), Toronto (up 25%) and Chicago (up 22%). The highest rates were recorded in major cities including New York ($476), Boston ($385) and Washington DC ($378).
Occupancy across major corporate travel hubs remained high in 2025, with global levels reaching 73.7% (up 1.3% year over year), reinforcing availability as a key constraint alongside price. In the US, hotel occupancy closed the year at 62.3%, down 1.2% year over year. On the supply side, nearly 750 hotels (79,000 rooms) opened in the US in 2025, with new openings expected to return to pre-pandemic levels in 2026. New York City led the way in new supply with 4,852 rooms, followed by Phoenix (3,650) and Dallas (3,558).
Ashley Gutermuth, head of FCM Consulting, Americas, said, “In the Americas, hotel sourcing is no longer about simply locking in the lowest rate.” The buyers who win in 2026, she said, “will be those who treat their hotel program as a strategic asset, not a procurement exercise.” Success will come, said Gutermuth, “from aligning sourcing strategy with pricing volatility, traveler needs and supplier behavior.”
The report also highlighted shifting booking behaviors across the Americas, with lead times shortening significantly. The average corporate booking window now sits at seven to 10 days in advance, down from 14 to 21 days pre-pandemic.
At the same time, expectations around flexibility and loyalty are evolving, according to the report. Features such as penalty-free cancellations, adjustable check-in and check-out, and modifiable reservations are increasingly viewed as standard rather than optional. Loyalty expectations are also expanding beyond room stays, with travelers placing greater value on benefits across dining, wellness and lifestyle offerings.
According to the report, average hotel rates in World Cup soccer tournament host cities are already approximately 50% higher during the six-week tournament window. On match nights, premiums increase further, averaging 31% above non-game nights, or roughly $524 versus $398. In the US, the impact is even more pronounced, with 10 of the top 25 hotel markets serving as host cities already showing elevated pricing levels. The risk for organizations is not only higher rates, said the report, but also reduced adherence to corporate negotiated rate agreements as hotels prioritize higher-yield demand during peak periods.
