Hotels and other lodging places
The market provides more than $3 billion in premium
Hotels, motels and other lodging places account for $3.05 billion in premium from some 102,619 establishments, according to data compiled by MarketStance, Middletown, Connecticut. This market has felt the effects of the economic downturn as both business and personal travel has been curtailed. In fact, MarketStance anticipates that both the number of enterprises and the number of employees will shrink through 2011 in most sectors.
Hotels and motels are expected to see a drop of 1.2% in the number of enterprises from 2007 through 2011 and employment is expected to decline by 1.1%. Rooming and/or boarding houses are expected to show steeper declines of 2.6% and 2.8%, respectively, as will member-based hotels and lodges, which are expected to decline by 2.5% and 2.8%. Sports and recreation camps are the only sector projected to show positive growth through 2011, with the number of camps growing 0.9% from 2007 through 2011 and employment rising by 1.3%. During the same period, MarketStance projects no growth for all business classes, while the services sector is expected to grow by 1.2% and 1.0%, respectively.
California represents the largest market for this class of business, with 11,458 establishments providing $471.5 million in premium. It is followed by Florida, where 7,079 establishments provide $333.0 million in premium; Texas (8,152 establishments accounting for $210.2 million); New York (5,826 establishments providing $180.4 million); and New Jersey (2,291 establishments accounting for $168.4 million).
Only six states are expected to enjoy positive employment growth through 2011, led by West Virginia with 4.4% growth, followed by North Dakota (2.3%); Idaho (2.0%); Alabama and Washington (both at 0.9%); and Texas (0.5%). Rhode Island is expected to suffer the steepest decline in employment, with a drop of 5.1%. Hawaii and Missouri are next with a drop of 3.5%.
Liability concerns dominate this market, accounting for $1.46 billion in premium or 47.8% of the total, followed by BOP premiums of $537.8 million (17.6%); workers comp ($503.4 million, 16.5%); property ($385.8 million, 12.7%); inland marine ($130.5 million, 4.3%); commercial auto ($21.4 million, 0.7%); and boiler and machinery ($11.6 million, 0.4%).
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