notitur.com September 12, 2026
Revenue & Distribution1 min read

Federal per-diem climbs again: $113 a night for CONUS

JSBy Joan SanzCurated by Joan Sanz. · September 11, 2026 · Follow on LinkedIn
Voice reading · ~2 min

The GSA has made its move. The standard CONUS lodging allowance, the base rate that caps spending for millions of corporate and government room nights across the United States, rises from $110 to $113 for fiscal 2027. That 2.7% breaks the previous cycle, when the figure stayed frozen. According to the analysis published by Hospitality Net, the seven-year run now sits at 18% growth on the standard rate.

The real story is in the markets that break the pattern. New York City tops 100% cumulative growth over that same stretch, and it is not the only place where the rate has detached from the average. For anyone running a corporate account or a government segment, that gap between base allowance and real city rate is exactly where the sale is won.

My read is blunt. The flat year was a pause, not a ceiling. With room costs climbing in nearly every urban market, a 2.7% bump gives breathing room to the hotel selling at government rate, even if it still trails real hotel inflation. A revenue manager with federal accounts should review the mix: take more per-diem nights in the low season and protect rate in the high season. For chains with inventory near administrative hubs, this cycle is a window to sign contracts that would not pencil out last year.

Quick questions

How much does the federal lodging per-diem rise in 2027?
The GSA lifts the standard CONUS rate from $110 to $113 per night for fiscal 2027, a 2.7% increase.
What does CONUS mean in the federal per-diem?
CONUS covers the continental United States, excluding Alaska and Hawaii. It sets the base rate applied to most federal travel.
Why does it rise again after a flat year?
After a stable cycle, the GSA resumes growth based on accumulated hotel costs. Over seven years the standard rate is up 18%.
Which markets grow fastest in per-diem?
New York City tops 100% cumulative growth over seven years, far above the 18% average. Other urban markets have also detached from the standard pattern.
How does this affect a hotel with corporate clients?
It sets the ceiling for what a federal traveler pays. A revenue manager with government accounts can adjust the mix, take more per-diem in low season and protect rate in high season.

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