721 - Accommodation
When navigating the world of government contracting or market research, the NAICS code 721 plays a crucial role in identifying businesses within the lodging industry. This code specifically relates to Accommodation, a vital sector catering to travelers and tourists by offering temporary lodging solutions. Whether you’re a business owner, government contractor, or researcher, understanding NAICS 721 is essential to classify and analyze establishments involved in accommodations.
What is NAICS Code 721?
NAICS Code 721 is designated for the Accommodation sector. This sector includes establishments primarily engaged in providing lodging or short-term accommodations for travelers and tourists. Key features of this code include:
- Offering overnight stays or temporary lodging
- Serving travelers, tourists, and other visitors
- Operating facilities such as hotels, motels, and resorts
This classification helps in organizing, analyzing, and comparing structures within the hospitality industry.
Sector Overview: Accommodation and Food Services
NAICS 721 falls under the broader Accommodation and Food Services sector. This sector encompasses businesses that provide food services and lodging, catering to consumer needs on a short-term basis. Within this sector:
- NAICS 721 focuses exclusively on lodging services.
- Food services are classified separately but often coexist within the same property (e.g., hotel restaurants).
Typical Business Activities Under NAICS 721
Establishments classified under NAICS 721 engage in activities such as:
- Providing overnight lodging services
- Operating hotel, motel, or resort properties
- Managing short-term rentals for travelers and tourists
- Offering related guest services (e.g., room service, concierge)
Examples of Businesses with NAICS Code 721
- Hotels: From budget to luxury chains providing full-service accommodations
- Motels: Roadside establishments catering to motorists
- Resorts: Properties offering lodging alongside recreational amenities
Size Standards for NAICS Code 721
To determine eligibility for small business programs, the U.S. Small Business Administration (SBA) defines size standards based on annual receipts or the number of employees, varying by industry. For NAICS 721 (Accommodation), the size standard is usually:
- Maximum annual receipts: $41.5 million
This means businesses with annual revenues below this threshold are considered small for federal contracting purposes under this NAICS code.
Detailed NAICS Code 721 Information Table
| Attribute | Description |
|---|---|
| NAICS Code | 721 |
| Code Title | Accommodation |
| Sector | Accommodation and Food Services |
| Primary Activity | Providing lodging or short-term accommodations |
| Typical Businesses | Hotels, Motels, Resorts |
| Size Standard | $41.5 million (annual receipts) |
| Includes | Overnight stays, lodging operations, guest services |
| Excludes | Food services not associated with lodging |
FAQ: NAICS Code 721 - Accommodation
Q1: What kinds of businesses use NAICS code 721?
A1: Businesses such as hotels, motels, resorts, and other establishments offering short-term lodging to travelers and tourists fall under this code.
Q2: How does NAICS 721 differ from food service NAICS codes?
A2: NAICS 721 covers lodging services, while food services have their own separate NAICS codes, although lodging establishments may have food service components.
Q3: What is the small business size standard for NAICS 721?
A3: The SBA size standard is $41.5 million in average annual receipts for this industry.
Q4: Can vacation rentals be classified under NAICS 721?
A4: It depends on the nature of the business. Commercial short-term rental operations may fall under NAICS 721, but individual owner-operated rentals may be classified differently.
Q5: Why is understanding NAICS codes important in government contracting?
A5: They help categorize businesses for program eligibility, market analysis, and compliance with procurement policies.
Understanding NAICS code 721 – Accommodation is essential for businesses operating in the lodging industry and for those engaging with government contracts. From hotels and motels to resorts, these establishments play a vital role in the tourism economy, and proper classification ensures access to relevant resources and opportunities.
For more insights into government contracting and business classifications, stay tuned to our blog!
