See: http://www.hotelnewsnow.com/articles.aspx/8530/Proposed-per-diem-changes-raise-concerns Federal per diems are currently determined as a blended average of actual prices paid for several levels of hotel categories. "Luxury" is not included under current method. One cost cutting proposal would have "upper upscale" room rates removed from the blended average as well. To provide a reference point, a quoted source in the article says "upper upscale" is equivalent to a full service Marriott. According to hoteliers (who clearly have an interest here), per diems could drop 20% to 30%. To provide another reference point, July 2012 federal hotel per diem in NYC is $216.