NAICS 721191 Quarterly Industry Report
Bed-and-Breakfast Inns
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 721191Sector: Accommodation and Food Services (72)Updated: Q1 2026
About This Report
This industry profile for Bed-and-Breakfast Inns (NAICS 721191) draws on data from the U.S. Census Bureau[6], Bureau of Labor Statistics[8], and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, hospitality analysts, and business brokers with current market data. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the bed-and-breakfast inns industry.
NAICS Sector
72
Accommodation and Food Services
Industry Definition & Overview
Bed-and-Breakfast Inns (NAICS 721191) encompasses establishments primarily engaged in providing short-term overnight lodging with breakfast service, typically in owner-operated residential-style properties per the U.S. Census Bureau[5]. Service models range from historic homes with a few guest rooms to purpose-built properties with 10 or more rooms in popular tourist destinations.
The Census Bureau[6] counts 5,702 active businesses employing 16,955 workers across the United States. Average daily rates range from $90 to $130 in rural settings, $140 to $200 in urban markets, and $160 to $250 in popular tourist destinations. Annual occupancy averages about 43.7 percent across the sector, though profitable operations typically sustain 60 to 70 percent through a combination of online travel agency (OTA) listings and direct booking websites. A five-room property at $150 per night and 45 percent occupancy generates roughly $10,125 per month, rising to $28,688 at 85 percent peak-season occupancy.
Per the SBA Table of Size Standards[7], the size standard is $9 million in average annual receipts. Net profit margins for well-managed properties fall between 20 and 30 percent. Dynamic pricing strategies that adjust rates for local events and seasonal demand patterns can boost revenues by about 15 percent compared to fixed rate structures. The sector faces growing competition from Airbnb and vacation rental platforms, though B&Bs differentiate through personalized hospitality, curated local experiences, and the included breakfast service that builds guest loyalty and supports repeat visits.
What's Included in This Industry
- Guest room rental and overnight lodging accommodations
- Breakfast meal preparation and service for registered guests
- Property maintenance and historic building preservation
- Guest concierge and local activity recommendation services
- Housekeeping and laundry services for guest rooms and common areas
- Online booking management across OTA platforms and direct channels
- Event hosting for small weddings, retreats, and private gatherings
- Garden, patio, and common area maintenance and seasonal decoration
- Wine and cheese reception or afternoon tea service offerings
- Local partnership coordination with tour operators and attraction providers
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Accommodation and Food Services | 72 |
| Subsector | Accommodation | 721 |
| Industry Group | Traveler Accommodation | 7211 |
| NAICS Industry | Other Traveler Accommodation | 72119 |
| National Industry | Bed-and-Breakfast Inns | 721191 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 721110 | Hotels (except Casino Hotels) and Motels | Hotels and Motels serve the same traveler accommodation market at larger scale with standardized service models, brand affiliation programs, and corporate travel demand that B&Bs typically lack |
| 721199 | All Other Traveler Accommodation | All Other Traveler Accommodation includes vacation rentals and guest houses that compete directly for leisure travel bookings through the same OTA platforms used by B&B operators |
| 721211 | RV (Recreational Vehicle) Parks and Campgrounds | RV Parks and Campgrounds offer alternative leisure accommodation targeting outdoor recreation travelers who may also consider B&B stays in nearby tourist destination markets |
| 722511 | Full-Service Restaurants | Full-Service Restaurants share operational overlap with B&B breakfast service requirements including food safety certification, ingredient sourcing, and kitchen facility compliance standards |
| 531110 | Lessors of Residential Buildings and Dwellings | Lessors of Residential Buildings own comparable real estate assets and face similar property maintenance, insurance, and local regulatory compliance considerations as B&B property owners |
| 561520 | Tour Operators | Tour Operators package B&B stays with local activities and transportation in tourist markets, channeling leisure travel demand to properties that offer unique destination experiences |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 9.1% | 223 |
| 2 | Maine | 5.8% | 142 |
| 3 | New York | 5.3% | 130 |
| 4 | Massachusetts | 4.8% | 118 |
| 5 | Pennsylvania | 4.7% | 116 |
| 6 | Vermont | 4.4% | 108 |
| 7 | Florida | 4.3% | 105 |
| 8 | Virginia | 4.0% | 99 |
| 9 | Texas | 4.0% | 98 |
| 10 | North Carolina | 3.6% | 88 |
% Of Establishments
0%
9%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
224
Total SBA Loans
$300.6M
Total Loan Volume
$1.3M
Average Loan Size
21 yrs
Average Loan Term
9.50%
Average Interest Rate
1,464
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[7], Bed-and-Breakfast Inns (NAICS 721191) has a size standard of $9 million in average annual receipts for federal contracting purposes. Most B&B operations fall well below this threshold, making the vast majority eligible for SBA-backed financing[9] including 7(a) and 504 loan programs commonly used for property acquisition and renovation.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Brookline Bank, a Division of Beacon Bank and Trust | 24 | $63.0M | $2.6M |
| 2 | Mission Valley Bank | 8 | $34.0M | $4.3M |
| 3 | The Huntington National Bank | 16 | $27.7M | $1.7M |
| 4 | Hanover Community Bank | 8 | $25.9M | $3.2M |
| 5 | Harvest Small Business Finance, LLC | 24 | $23.4M | $973K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 721191?
NAICS 721191 covers establishments primarily engaged in providing short-term overnight lodging with breakfast service in typically owner-operated residential-style properties per the U.S. Census Bureau[5]. Operations range from historic homes with a few guest rooms to purpose-built properties with 10 or more rooms. Hotels, motels, vacation rentals, and campgrounds are classified under separate NAICS codes.
How large is the U.S. bed-and-breakfast industry?
The Census Bureau[6] counts 5,702 active B&B businesses employing 16,955 workers nationwide. Most operations are small, owner-operated businesses with fewer than 10 rooms. Average annual revenue per establishment varies widely based on location, room count, and occupancy rates, with tourist destination properties generating substantially higher income than rural operations.
What revenue and profitability can a B&B owner realistically expect?
A five-room B&B charging $150 per night generates roughly $10,125 monthly at 45 percent occupancy and approximately $28,688 at 85 percent peak-season occupancy. Net profit margins typically range from 20 to 30 percent for well-managed properties, with the most profitable operations sustaining 60 to 70 percent annual occupancy per industry survey data. Revenue depends heavily on room count, location quality, and the operator's ability to blend OTA bookings with direct reservations to reduce commission costs.
What is the SBA size standard for bed-and-breakfast inns?
Per the SBA Table of Size Standards[7], the size standard is $9 million in average annual receipts calculated over the preceding five fiscal years. Most B&Bs fall well below this threshold, making the vast majority eligible for SBA-backed financing. The 7(a) and 504 loan programs are commonly used for B&B property acquisition and renovation projects.
How does location affect bed-and-breakfast business performance?
Location drives both pricing power and occupancy consistency. Rural properties typically achieve ADRs of $90 to $130 per night, tourist destinations $160 to $250, and urban markets $140 to $200 per Census Bureau[6] accommodation data. Proximity to attractions, event venues, and seasonal tourism drivers creates natural demand cycles. Properties in year-round tourism markets show more stable cash flow than those depending on a single peak season.
What strategies maximize B&B revenue and occupancy?
Dynamic pricing that adjusts nightly rates based on demand, local events, and seasonal patterns lifts revenue by roughly 15 percent versus flat rate structures per hospitality benchmarking data. Blending OTA listings on Airbnb and Booking.com with direct booking websites reduces commission costs while maintaining visibility. Offering curated local experiences, themed weekend packages, and event-based promotions helps differentiate from standardized hotel competitors and supports premium pricing.
What regulatory requirements apply to B&B operations?
B&B operators must comply with local hotel and lodging permits, zoning regulations, and business licenses per state and local government requirements. Food service permits are required for breakfast operations, and ADA compliance[10] is mandatory for public areas and guest rooms in commercial properties. Fire safety codes require smoke alarms and safety inspections. Specialized hospitality insurance is required because standard homeowners policies typically do not cover B&B commercial operations.
How has competition from vacation rental platforms affected B&Bs?
Platforms like Airbnb and VRBO have expanded the supply of residential-style accommodation in most markets, creating price pressure for B&B operators per BLS industry data[8]. B&Bs that differentiate through personalized hospitality, curated local experiences, and quality breakfast service maintain stronger pricing power than those competing solely on room rate. Many successful B&B operators now list on the same platforms to capture demand while also investing in direct booking capabilities to reduce commission expenses.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Census Bureau data.census.gov
- [7]SBA Table of Size Standards sba.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]SBA-backed financing sba.gov
- [10]ADA compliance ada.gov
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