Employment is concentrated in densely populated cities and resort areas. Compared with establishments in other industries, hotels, motels, and other lodging places tend to be small. More than 75 percent employed fewer than 20 people; about 42 percent employ fewer than 5 workers (chart). As a result, lodging establishments offer opportunities for those who are interested in owning and running their own business. Although establishments tend to be small, the majority of jobs are in large hotels and motels with more than 100 employees.

Many of the industry's workers are young because hotels and other lodging places provide first jobs to many new entrants to the labor force. In 2002, about 21 percent of the workers were younger than age 25, compared with about 14 percent across all industries (table 1).