The American Hotel & Lodging Association (AHLA) issued a statement praising the increase in fiscal year 2027 lodging per diem rates for federal workers, as set by the General Services Administration (GSA). GSA’s per diem guidelines govern reimbursement for federal employees’ lodging and meal expenses for official government travel.

In the statement, Rosanna Maietta, CEO, said: “We applaud the GSA for raising its FY2027 per diem rates. Fair, market-based federal per diem rates that reflect current operating costs are essential to sustaining hotels, supporting local jobs and generating community investment. Government travel is a critical economic driver, making it imperative that per diem rates keep pace with increased costs. A strong economy requires a thriving hospitality sector and this increase will help achieve that goal.”

Starting Oct. 1, the standard daily lodging allowance for most of the continental US will increase by $3 to $113 per day. The standard meals and incidental expenses allowance will remain $68 per day.

Each year, the GSA sets per diem rates to reimburse federal employees’ lodging and meals expenses for official travel within the continental US. Typically, the rates are calculated based on the average daily rate for lodging and meals from a trailing 12-month period, minus 5%. AHLA works closely with the GSA to ensure per diem rates are fair to both hoteliers and the government.