Monthly hotel accommodations placed directly — no OTA rates, no nightly billing volatility, no lease. One agreement. Workers arrive to keys waiting.
When you bring workers on assignment for 30 days or more, Phaedrus Stays secures monthly hotel accommodations at pre-negotiated rates — replacing unpredictable nightly hotel costs with a single, fixed monthly arrangement your company can plan around.
Instead of reimbursing unpredictable nightly hotel costs, your company can secure monthly lodging for approximately $1,500/month flat, all-inclusive, giving workers stable accommodation while keeping project housing expenses predictable.
Under federal travel rules, per diem allowances may be used for lodging, meals, and incidental expenses when structured under an accountable plan with appropriate documentation. When structured correctly, a monthly lodging arrangement may be more cost-effective and administratively simpler than processing nightly reimbursements.
This arrangement is intended for temporary work assignments — lodging away from the worker's normal tax home. It is not intended to replace wages and should be administered under a written policy covering eligibility, duration, documentation, and payment method.
One fixed rate per room per month. No nightly rate swings, no weekend surcharges, no surprise billing. Budget your project housing costs with certainty.
Each placement is executed under a written 30-day accommodation agreement — the documentation foundation for an accountable plan. When structured correctly, lodging allowances under an accountable plan may be non-taxable to the worker.
No lease negotiations, no utility accounts, no deposit management. Phaedrus handles the hotel relationship. Your HR team gets one invoice and a named guest list.
Standard hotel rates at walk-in pricing run $70–$120/night. For a 30-day stay, that's $2,100–$3,600 per worker per month ‐ well above negotiated rates and entirely unpredictable.
| Factor | Standard Hotel / OTA Rate | Via Phaedrus Stays |
|---|---|---|
| Monthly cost per room | $2,100–$3,600 | $1,300–$2,000 |
| Billing structure | Nightly — unpredictable, requires receipts per night | One monthly invoice from hotel to your company |
| Lodging tax | Applied to every night — $210–$450/month per room | Tax relief available under written 30-day agreement |
| Includes utilities, WiFi, housekeeping, breakfast, laundry | Varies — often additional charges | All-inclusive at the agreed monthly rate |
| 5 workers for 6 months | $63,000–$108,000 | $39,000–$60,000 |
Savings on 5 workers for 6 months: $3,000–$69,000 retained in project budget. Tax relief calculated separately.
Many employers try the rental market first. at the project location, that means tight inventory, 6-month lease minimums, unfurnished units, security deposits, and ongoing admin for your HR team.
Plus the time your HR team spends sourcing, vetting, and managing the unit — and chasing the deposit refund.
Hotel invoices your company directly. No ongoing involvement from Phaedrus after placement.
exempts extended-stay accommodation from lodging tax when the stay is 30 or more consecutive days under a written agreement ‐ effective from Day 1. Most companies booking through OTAs or at nightly rates miss out on these savings entirely.
Applicable state statutes exempt stays of 30+ consecutive days under a written agreement from state and lodging tax. Lodging tax rates vary by jurisdiction.
On a $1,500/month room: $150–$188/month per worker in avoidable tax. On 10 workers housed for 6 months: $9,000–$11,280 in tax savings — before any rate savings are counted.
Every Phaedrus placement uses a written accommodation agreement executed before the worker checks in, confirming the 30-day term. The exemption applies from Day 1 — not after 30 days have elapsed.
Companies booking through OTAs, using nightly rates, or without a written placement agreement typically do not qualify. Phaedrus structures every placement to meet applicable exemption criteria.
The entire process is handled by Phaedrus. You provide the basics — we handle everything else.
Worker count, arrival date, approximate duration, and any tier preference (budget, midscale, upper midscale). That's all we need to start.
Phaedrus identifies the right hotel from our partner network and negotiates the monthly rate within your tier band. You approve the placement before we proceed.
A formal written placement agreement is executed between your company and the hotel before check-in. This documentation establishes eligibility for extended stay lodging tax relief where applicable.
Your workers check in. The hotel invoices your company directly each month at the agreed rate.
If you're assigned to a temporary work location, your employer may use Phaedrus Stays to arrange your housing for the duration of the assignment. Here's what that means for you.
You're placed in a hotel at the project location — not a temporary fix, but a proper monthly stay. Full-service hotel with real amenities for the duration of your assignment.
Your employer handles the monthly invoice directly with the hotel. You don't pay nightly rates, and you don't submit receipts for every night stayed.
When the employer's plan follows IRS accountable plan rules, lodging provided for a temporary work assignment away from your normal tax home may be non-taxable. Ask your employer's HR team for the specifics of your plan.
If you are assigned to a temporary work location, your lodging may be covered through a travel benefit rather than requiring you to pay hotel costs out of pocket. Your employer is arranging monthly housing for approximately $1,500/month, all-inclusive, which simplifies your stay and reduces your personal expense burden during the assignment.
How It Works
Federal per diem rules allow employers to provide lodging and meal allowances under an accountable plan. When structured and documented correctly, part or all of the benefit may be non-taxable, depending on your employer's policy and IRS rules. Travel commonly uses the federal standard lodging rate in areas without a special local rate.
Your Advantages
This benefit applies to temporary travel assignments and is not regular pay. It is intended for lodging away from your normal tax home. Check your company's policy for eligibility, duration, and documentation requirements.
Tell us your headcount, arrival date, and duration. We'll confirm placement options within 24 hours.
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