Hospitality Market Report
2023 Investment Forecast
Logistics-Related Lodging, Southern Californians’ Weekend
Escapes and International Allure Buoy Sector
Regionally-based drivers help counteract discretionary travel slowdown. Yearlong average occupancy and ADR figures in Riverside-San Bernardino are expected to retreat slightly during 2023 as inflationary pressures curb travel sentiment. Nevertheless, the number of room nights booked will closely align with last year’s tally, as the reasons to stay at area hotels remain diverse. Major events, including Coachella and Stagecoach, provide consistent annual surges in room demand during the spring. On a more regular basis, desert towns in the valley appeal to southern California residents seeking weekend resort-style getaways. More trucks are also traveling along regional interstates amid the Inland Empire’s ongoing industrial boom, ultimately providing another source of hotel demand, particularly in the limited-service segment. While leisure travel to Riverside-San Bernardino from international origins will likely remain soft this year, there are signs that it could improve longer term. On The New York Times’ Places to Go list for 2023, Palm Springs grabs the sixth-highest spot, being one of just two U.S. locations to crack the top 10.