The INN was full. The "inn" is mentioned in the Old Testament, and was still in operation in the New. The Inn was located on land that had been given to Chimham by DAVID (2 Samuel 19:32-40). It was a place to accommodate a number of TRAVELERS (Jeremiah 41:17).
Holman Bible Dictionary addresses the backgound of the inn: “ee' rewth) Part of a place name meaning, “hospitality” (Jeremiah 41:17) translated differently—KJV: “habitation of Chimham”; NAS, NRSV: “Geruth Chimham”; REB: “Kimham's holding.” Fugitives stopped there near Bethlehem on their way to Egypt fleeing from Ishmael, who had killed Gedaliah, whom Babylon had appointed governor of Judah after the fall of Jerusalem in 586 B.C. It apparently designated an inn or lodging place near Bethlehem. It may have represented the first stop across the border from Judah into Egyptian-controlled territory.”