Hotels Are Thrilled Government Workers Have $6 More to Spend

The U.S. government's General Services Administration has increased its lodging allowance for government workers traveling in the continental U.S. during the next fiscal year. The increased spending will likely provide a revenue boost for domestic hotel brands.

The standard lodging rate gets a bump from $83 to $89, effective when fiscal year 2016 begins on October 1.

Representatives of the hotel industry are excited about the extra $6 in the pockets of government travelers.

“Ensuring that per diem rates reflect the realities of the market has been a key priority of AH&LA and we applaud GSA’s efforts to ensure lodging rates reflect current market conditions," said Katherine Lugar, president and CEO of American Hotel & Lodging Association. "The increase in the standard rate to $89 from $83 is a step in the right direction."

The government determined the new lodging per diem based on a study of hotel average daily rate from April 2014 to March 2015. The change marks a two-year increase of $12 from the fiscal year 2014 standard rate of $77.

The per diem for meals and incidentals has also been increased, for the first time since 2010, to $51 in standard areas and from $54 to $74 in non-standard areas. There are about 400 non-standard areas where government workers get higher than average per diems due to increased costs.