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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.