In Brief: The American Hotel & Lodging Association (AHLA) has issued a statement responding to the U.S. General Services Administration’s release of fiscal year 2027 federal per diem rates, which set reimbursement limits for government travelers and influence hotel occupancy and revenue in affected markets.
American Hotel & Lodging Association (AHLA) President & CEO Rosanna Maietta released the following statement after the General Services Administration (GSA) announced its fiscal year 2027 per diem rates for federal workers. GSA’s per diem guidelines govern reimbursement for federal employees’ lodging and meals expenses for official government travel.
“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.”
Background
Starting October 1, 2026, the standard daily lodging allowance for most of the continental United States will increase by$3.00 to $113.00 per day. The standard meals and incidental expenses allowance will remain $68.00 per day.
Each year, the GSA sets per diem rates to reimburse federal employees’ lodging and meals expenses for official travel within the continental United States. 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.
More information about the FY2027 per diem rates can be found on the GSA website.