Hospitality premiums total more than $3 billion
The hospitality industry (hotels, motels and other establishments providing guest rooms) represents total premiums of $3.05 billion, according to data compiled by MarketStance, Middletown, Connecticut. The two largest premium areas are premises and operations liability, with $1.39 billion, followed by property at $709 million. The industry generates sales in excess of $113 billion and employs about 1.5 million people nationwide. Motels and motor hotels represent the largest sector, providing $55.9 billion in sales and employing nearly 755,000 people. Convention hotels provide $37.4 billion in sales and employ 502,000 people. Casino hotels generate nearly $11.2 billion in sales and employ 125,000 people.
Although it represents a relatively small sector, bed and breakfast inns are one of the fastest growing segments showing an historical growth rate for operational locations of 2.4% annually from 2000 to 2004 and a projected annual growth rate of 1.4% for 2004 through 2008. Employment grew 1.6% annually from 2000 to 2004 and is expected to accelerate to 2.0% annually for 2004 through 2008. Bed and breakfast inns account for total premiums of $54.5 million. The states with the strongest concentration of bed and breakfast inns are Iowa, Vermont, South Dakota and Maine. Historically, Vermont, North Dakota, Idaho and Texas experienced the strongest growth rates in number of operating locations from 2000 through 2004, while Nebraska, South Carolina, Pennsylvania and West Virginia saw the greatest decline in number of hospitality locations. The states expected to have the strongest growth in hospitality locations for 2004 through 2008 are Arizona, South Dakota, Alaska and Washington.
The growth in number of locations historically has come from non-employer and small commercial accounts, which saw annual growth of 1.5% and 1.3%, respectively, from 2000 through 2004. In contrast, middle market account locations fell 0.8% annually and national accounts dropped 1.1%.
There are five states where more than 50% of the hospitality revenue is generated by large hotels and casino hotels. Not surprisingly, Nevada leads with more than 80% of revenues generated by large and casino hotels, followed by Connecticut (76%); New Jersey (73%); Mississippi (54%); and Arizona (52%). For more information, go to www.marketstance.com. * |
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