The U.S. General Services Administration raised its per diem reimbursement rates for lodging by $9 for fiscal year 2024.
In a news release, the GSA reported that effective Oct. 1, 2023, through Sept. 30, 2024, the standard continental U.S. lodging rate will increase from $98 to $107. That will result in 302 locations receiving a maximum allowance higher than the standard rate.
Meals and incidental expenses per diems will remain at $59 to $79 for the next fiscal year, and the standard M&IE rate will stay at $59. Per diem rates for specific locations can be searched for here.
Last year, hoteliers worried weather the small increase the GSA allowed for fiscal year 2023 would lead them to decrease the amount of government business or stop taking it altogether.
In the news release, the GSA states that it bases the maximum lodging allowances on historical average daily rate minus 5%. The pandemic led to ADR declines, followed by “a volatile hotel industry recovery.”
The ADR data available to establish the GSA’s fiscal year 2024 rates was from before the COVID-19 public health emergency ended May 11 since it used data from the trailing April through March. The agency said it made upward adjustments to ensure that lodging allowances were enough for federal travelers in the next fiscal year.
In a news release, the American Hotel & Lodging Association praised the lodging allowance increase. The $9 a day rate increase came after months of working with the administration, AHLA President and CEO Chip Rogers said.
“This is a positive step for many hoteliers across the country, as government travel supports billions in travel spending, and many private-sector organizations also base travel reimbursements on federal per diem rates,” he said.