The U.S. General Services Administration raised its per diem lodging expense rate for the next fiscal year by $3, an increase that could raise about $100 million for the hotel industry.
Effective Oct. 1, the standard U.S. continental per diem lodging expense rate for federal agencies for fiscal year 2025 will be $110, up from $107, according to a news release. There will be 296 non-standard areas in which individual rates will be higher than the standard rate.
The GSA also increased the reimbursement rate tiers for meals and incidental expenses for the first time since fiscal year 2022. The standard rate range has been revised from $59 to $68. The non-standard tiers have been revised from $59 to $79 up to $68 to $92.
Per diem rates for specific locations can be searched for here.
In a statement, the American Hotel & Lodging Association praised the GSA’s upward revision of per diem rates. The increase of $3 to $110 a day is estimated to be worth $100 million to the U.S. hotel industry.
“Government travel is a vital source of revenue for hotels, and it’s critically important that the federal government’s per diem rates reflect market conditions and take into account the economic realities hotels are facing, including the lingering effects of inflation and the nationwide workforce shortage,” AHLA Interim President and CEO Kevin Carey said in the statement.