Bed and Breakfast Inns

The 2,430 bed and breakfast inns (BNBs) in the US with employees provide short-term lodging, often in private homes or small buildings. As the industry’s name suggests, breakfast is included in the room rate. A large number of BNBs have no employees and about 95% are run by owners as a second career. The number of rooms a typical BNB has ranges from four to eleven, with an average of six guest rooms.

Seasonality of Demand

Many BNBs are located in vacation destinations that experience peaks and valleys in tourist traffic.

Sensitivity to Economic Conditions

Economic downturns and the corresponding decline in travel affect all types of lodging establishments, including BNBs.

Aug 28, 2026 - Insurance Costs Add Pressure for B&B Operators

• Insurance is a more complicated expense for bed and breakfast operators than it used to be, particularly because many inns combine an older residential property with the risks of a commercial lodging business. Standard homeowners insurance generally does not cover regular paying guests, according to the Insurance Information Institute, leaving B&Bs to carry commercial property and liability coverage, along with protection for business interruption, food service, and other exposures. Industry estimates from Latent Insurance put comprehensive coverage for a typical three- to six-room owner-operated B&B at $2,500 to $6,000 annually, while seven- to 12-room properties can pay $5,000 to $15,000. Older and historic buildings can be especially expensive because specialized materials and construction push up replacement costs. Pools, hot tubs, alcohol service, events, and severe-weather exposure can drive premiums higher, making insurance a potentially significant fixed cost for smaller inns.
• Independent B&B operators are facing mounting margin pressure as labor, food, insurance, utilities, and maintenance costs continue to rise faster than many owners can comfortably pass on through higher room rates. Labor remains the largest operating expense, particularly as small inns compete with hotels and restaurants for housekeepers and kitchen staff in a tight hospitality labor market. At the same time, higher food prices have increased the cost of the full breakfasts that distinguish B&Bs, while insurance premiums and property maintenance expenses have climbed for older, historic properties. Many operators are responding by relying more heavily on owner labor, trimming waste, adopting dynamic pricing, or adding higher-margin experiences and packages instead of imposing steep rate increases that could dampen demand. The National Federation of Independent Business reports that labor costs remain one of small businesses' top concerns, while innkeepers say balancing rising expenses against guest price sensitivity has become increasingly difficult.
• B&Bs are looking to get in on the “bleisure” travel market that is growing in popularity, primarily with remote and travel-heavy professional workers. With about 22% of US employees working fully remote and over half in hybrid roles (according to the US Bureau of Labor Statistics) more and more of those workers are mixing business and leisure together. Bleisure travel accounts for roughly 25% of global business travel spending and $65 billion in US spending in 2023. This shift is driving longer, midweek stays, as bleisure travelers add an average of 2.5 extra days per trip. In response, US B&B operators are investing in high-speed Wi-Fi, dedicated workspaces, and extended-stay pricing while targeting remote professionals through digital marketing. Strategically, this represents a move toward a hybrid model - blending work and leisure - to increase occupancy, length of stay, and generate revenue throughout the week and during off-seasons.
• Gen Z and millennials make up about half of all US travelers, with Gen Z’s share climbing from 8% in 2024 to 14% in 2025, according to Deloitte’s latest Travel Industry Outlook. Even with lower earnings, both generations travel at higher rates than older cohorts. How they plan and book trips is also changing the playbook: social media (especially short-form video) has become a primary discovery tool, and sustainability considerations increasingly influence lodging and transportation choices. Digital engagement matters more across the journey, from inspiration to booking to in-trip experiences. Millennials are leading in the use of AI for trip planning and tend to associate “luxury” with food-driven, family-friendly experiences. Gen Z, meanwhile, defines luxury around comfort, wellness, and amenities such as fitness and spa offerings. Together, these preferences are pushing travel and hospitality brands toward more digital-first marketing and personalized experiences designed to meet younger travelers where they are.

Industry size & Structure

The typical bed and breakfast (BNB) operates out of a single location, employs 5 workers, and generates about $593,800 annually.

• According to US government sources, the BNB industry consists of about 2,430 firms that employ about 12,140 workers and generate about $1.2 billion annually. In some states, BNBs under a certain number of rooms do not require licenses. In addition, BNBs that are completely run by the owner (no employees) are not included in the Census count.
• The BNB industry is extremely fragmented; the top 50 companies account for about 15% of industry revenue.
• The BNB industry consists almost exclusively of single establishment firms.
• According to the Association of Lodging Professionals, 79% of US BNB owners live on the premises.