GSA Increases FY27 Lodging Per Diem Rate to $113
The federal government lifts its continental US lodging ceiling by $3 to $113 per day starting October 1.
The short answer
The GSA has raised the FY27 standard CONUS lodging per diem rate by $3 to $113 per night. The change takes effect October 1 following two years of flat reimbursement caps.
The short version
- GSA will raise the standard continental U.S. lodging per diem rate by $3 to $113 per night on October 1.
- American Hotel & Lodging Association noted the adjustment ends a two-year freeze across standard lodging and meals rates.
- 295 nonstandard continental U.S. locations retain customized rates with meals ranging from $68 to $92 daily.
The U.S. General Services Administration is increasing the standard continental United States lodging per diem rate by $3 to $113 per night for fiscal year 2027 [1]. Taking effect October 1, the adjustment raises the baseline rate ceiling for federal official travel and private corporate accounts that benchmark against government rates after two consecutive years without an increase [[1], [2]].
What are the new GSA lodging and meal reimbursement levels?
The standard lodging per diem rate across most of the continental U.S. rises by $3 to $113 per day for fiscal year 2027, which runs from October 1 through September 30, 2027, Asian Hospitality reported [1]. The standard meals and incidental expenses rate remains fixed at $68 per day [1]. Nonstandard fiscal year 2027 meal rates across designated areas span from $68 to $92 daily, according to an agency statement cited by Asian Hospitality [1].
While the standard rate governs the majority of CONUS travel, 295 locations feature nonstandard per diem rates that account for local market expenses, as detailed by Asian Hospitality [[1], [2]].
| Reimbursement Metric | Rate Change | Fiscal Year 2027 Rate | Effective Window |
|---|---|---|---|
| Standard CONUS Lodging | +$3 increase | $113 | Oct. 1 to Sept. 30, 2027 |
| Standard Meals & Incidentals (M&IE) | Remains unchanged | $68 | Oct. 1 to Sept. 30, 2027 |
| Nonstandard M&IE Range | Varies by area | $68 to $92 | Oct. 1 to Sept. 30, 2027 |
| Nonstandard Rate Locations | Unchanged count | 295 locations | Oct. 1 to Sept. 30, 2027 |
How does the GSA calculate the baseline travel rate?
The agency determines per diem figures by evaluating trailing 12-month lodging and meal market metrics, minus 5 percent, Asian Hospitality reported [1]. This formula sets federal traveler reimbursements based on market conditions, according to Asian Hospitality [[1], [2]].
For fiscal year 2026, the GSA maintained rates at fiscal year 2025 levels rather than applying an upward revision [1]. Rosanna Maietta, president and CEO of the American Hotel & Lodging Association, noted that the FY27 revision follows two years without an increase in standard lodging and M&IE rates [1].
Why does the $3 lodging shift matter for revenue managers?
Federal per diem rates serve as contract ceilings that extend beyond government agency bookings [1]. Commercial properties utilize these rates to attract government travelers, while private-sector enterprises also adopt federal per diem benchmarks for their corporate employee travel policies [[1], [2]].
A frozen rate suppresses corporate group rates and transient room caps in government-heavy travel markets [1]. The $3 increase establishes a higher negotiation baseline for standard continental travel, allowing hotel operators to align room prices more closely with real property operating costs [1].
How did the hotel industry respond to the per diem update?
Industry groups, including the American Hotel & Lodging Association, welcomed the rate adjustment following consecutive periods of static government reimbursement [1]. Maietta stated that fair per diem figures reflecting expenses are required to sustain properties, local employment, and community investment [1]. The association previously warned that freezing fiscal year 2026 rates at fiscal year 2025 levels would affect travel volume from government workers across lodging markets [1].
Reported by
This article was written from the following reporting. Follow the links for the original coverage.
- [1]GSA Raises FY27 Lodging Per Diem Rate to $113— asianhospitality.com
- [2]GSA Increases Standard FY27 Hotel Per Diem to $113— asianhospitality.com
Frequently asked
+What is the new standard GSA lodging per diem rate for FY27?
The GSA will raise the standard lodging per diem rate for most of the continental United States by $3 to $113 per day for fiscal year 2027, effective from October 1 through September 30, 2027.
+Did the standard meals and incidental expenses per diem rate increase?
No, the standard meals and incidental expenses rate remains at $68 per day for fiscal year 2027, while nonstandard areas range from $68 to $92 per day.
+How many locations use nonstandard per diem rates?
The GSA designated 295 locations across the continental United States that have nonstandard per diem rates reflecting higher area travel costs.
+How does the GSA calculate official travel per diem rates?
The GSA calculates per diem rates using lodging and meals metrics gathered from a trailing 12-month period, minus 5 percent.
+Why do private corporate accounts care about federal per diem rates?
Some private-sector businesses benchmark their corporate employee travel reimbursement policies directly against federal per diem caps established by the GSA.
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