WASHINGTON (Aug. 16, 2024) – American Hotel & Lodging Association (AHLA) Interim President and CEO Kevin Carey released the following statement after the General Services Administration (GSA) announced its fiscal year 2025 per diem rates for federal workers. GSA’s per diem guidelines govern reimbursement for federal employees’ lodging and meals expenses for official government travel.

Starting October 1, 2024, the standard daily lodging allowance for most of the continental United States will increase by $3 to $110 per day, an increase estimated to be worth approximately $100 million to the hotel industry. The standard meals and incidental expenses allowance will increase by $9 to $68 per day, the first increase for this expense category in three years.

“These increases are an important victory for AHLA, which has made fair per diem rates a perennial federal advocacy priority on behalf of our members,” said AHLA Interim President & CEO Kevin Carey. “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. We appreciate the work done on this issue by GSA Administrator Robin Carnahan and the Biden administration.”

Background

Each year, GSA sets per diem rates to reimburse federal employees’ lodging and meals expenses for official travel within the continental U.S. And each year, AHLA works closely with GSA to ensure per diem rates are fair to both hoteliers and the government.

Typically, GSA calculates per diems based on the average daily rate (ADR) for lodging and meals from a trailing 12-month period, minus five percent.

The FY25 standard per diem rate for most of the continental U.S. is $178, which includes $110 for lodging and $68 for meals and incidental expenses. More information about the FY25 rates can be found on the GSA website.