ATLANTA, GA, August 20—AAHOA commends the U.S. General Services Administration’s recent decision to raise the per diem lodging and meal rates for federal employees. This move represents a win for the hotel industry and the 20,000 AAHOA Members who own and operate more than 60% of the nation’s hotels.
The GSA announced that for fiscal year 2025, the daily lodging rate for federal employees traveling within the continental United States will increase from $107 to $110. Additionally, the standard meals and incidental expenses (M&IE) rate will rise from $59 to $68, with M&IE tiers for non-standard areas adjusting to $68-$92 from the previous $59-$79 range.
AAHOA Chairman Miraj S. Patel highlighted the importance of this increase: “With government travel being a significant contributor to hotel revenue, it’s crucial that federal per diem rates are aligned with the economic pressures hotels face today, including persistent inflation and the widespread labor shortages across the country.”
\AAHOA has been a steadfast advocate for fair and reasonable per diem rates. Previously, it pushed for the freeze of rates to FY2021 levels during FY2022 to support the hotel industry’s recovery from the COVID-19 pandemic. This latest rate increase by the GSA is a positive step forward in recognizing the needs of the hospitality sector.
“By raising these rates, the GSA is not only supporting our industry but also boosting the broader economy, including restaurants and other local businesses that benefit from government travel spending,” said AAHOA President & CEO Laura Lee Blake. “This decision will have a lasting impact on the ability of hotels to continue delivering exceptional service to federal employees and all travelers.”
