Contact:
Jay Karen, President & CEO
Professional Association of Innkeepers International
856-310-1102
jay@paii.org
www.paii.org
Peggy Berg, ISCH
The Highland Group
404-872-4631
pberg@highland-group.net
www.highland-group.net
Bed and Breakfast Industry Reports Steady Growth
Haddon Heights, NJ, July 18, 2007 - The biannual Industry Study of Operations
and Finance, 2007-2008 released today by the Professional Association
of Innkeepers International (PAII) shows that occupancy rates and room revenues
continue a steady climb for the nation's B&Bs and country inns. The PAII
study showed that annual occupancy for B&Bs nationally rose to 43 percent
in 2006, a growth rate of about 5 percent over 2005. Occupancy has risen slowly
but steadily every year since 2002, when it stood at 38 percent. Overall, this
five-year increase (2002 through 2006) represents a net gain for the industry
of about 13 percent.
Except in a small number of travel markets, occupancy rates at B&Bs and
country inns tend to lag behind that of hotels and motels. This is mainly because
most small inns cater primarily to leisure travelers and are located in destination
areas with brief "high" seasons. The occupancy figure for the overall
lodging industry in 2006 was 63.4 percent, according to Smith Travel Research.
"The growth over the past year was modest, but it suggests that this segment
of the lodging industry is holding its own, even as chain hotels and motels
step up the competition by imitating some of the quality amenities that B&Bs
and country inns have been lavishing on their guests for many years," says
Jay Karen, PAII President and CEO.
Inns make up for the comparatively low occupancy rates by charging higher rates
and providing more personalized services than do the chain lodging properties
in general. In 2006, according to the PAII study, the average daily rate (ADR)
at B&Bs in the study was $166, which represented a 3.5 percent increase
over the previous year. The average daily rate for country inns (meaning, inns
with full-service restaurants) was $153, an increase of 3 percent over 2005.
For the U.S. lodging industry generally, the average daily rate in 2006 was
$97.31, according to Smith Travel Research. This was a 7 percent increase over
2005, suggesting that many lodging properties have boosted rates as the economy
improved in recent years.
Another key measure of business success in the lodging industry is Revenue Per
Available Room (RevPar). This number is arrived at by dividing total annual
room revenue by the number of rooms available for rent during the year -- thus
giving a good picture of both income and occupancy. By this measure, the B&Bs
in the PAII study experienced a 6 percent increase in RevPar from 2005 to 2006,
reaching an average annual rate of $69.81. Overall, according to the study,
RevPar at B&Bs has increased by 34.3 percent since 2001, representing solid
growth in both rates and occupancy. RevPar was highest in the Western states
($81.48 in 2006) and in the Northeast ($74.25), and lower in the Southeast ($60.96)
and Midwest ($55.60).
PAII conducts studies of the bed and breakfast/country inn industry by surveying
its nearly 2,000 lodging property members. The PAII study is the nation's only
authoritative and comprehensive research report on the finances and operations
of this segment of the hospitality industry. It is used by innkeepers to compare
their businesses with other inns, by prospective innkeepers to help develop
business plans, and by banks and other financial institutions as a key resource
in evaluating the business climate for B&Bs and country inns.
The 2007-2008 Industry Study was conducted in the spring of 2007 in partnership
with The Highland Group, an industry research and consulting organization. The
study includes detailed information about the operations and financial performance
of inns segmented by size, type, and region. Copies of the study may be obtained
by contacting the PAII office at 856-310-1102 or by visiting www.paii.org, where
you will also find more information found in the report.
Contact:
Jay Karen, President & CEO
Professional Association of Innkeepers International
856-310-1102
jay@paii.org
www.paii.org
Peggy Berg, ISCH
The Highland Group
404-872-4631
pberg@highland-group.net
www.highland-group.net
About PAII: The Professional Association of Innkeepers International
represents bed and breakfasts and country inns throughout North America (and
in several foreign countries) and provides education, communications, public
relations, networking, and research services to its membership and the greater
industry. PAII hosts the world's largest annual gathering of innkeepers and
publishes the industry's leading trade publication, Innkeeping Quarterly (IQ).
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