Hotel Rate Agreements and Lodging Reimbursement Rate

Lodging Reimbursement Rate Rules Clarified

The Comptroller’s office was recently asked to clarify why some contract hotels charge $89 when the maximum state lodging reimbursement rate is $85. The General Services Administration (GSA) Standard Rate for locations without specified rates increased to $89 effective Oct. 1, 2015; however, the maximum state lodging reimbursement rate is $85 as specified in the General Appropriations Act, Article IX, Part 5.

The Hotel Rate Agreements require hotels to offer state contracted rates at or below the GSA rates. Hotels that submitted Hotel Rate Agreements with an $89 contracted rate were asked if they would reduce the rate to $85 due to the state reimbursement limitation. Some contracted hotels agreed to reduce the contract rate while others did not. Changes are reflected in the Fiscal Year 2016 Hotel Directory Listing. Hotels with contracted rates of $89 are not required to reduce their rates to $85.

In accordance with TexTravel and the agency’s internal travel policies, an employee may reduce the meal reimbursement rate to increase the lodging rate or request a higher maximum lodging reimbursement rate. Another option is to stay at a non-contract hotel with a rate equal to or lower than the reimbursement rate, noting the appropriate contract exception.