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Market Report

Riverside-San Bernardino
Hospitality Market Report

2024 Investment Forecast

Swift Pandemic Recovery Has Seemingly Ceased,
yet The Inland Empire is Well Positioned

The metro ranks among revenue growth leaders, headlined by full-service gains. From 2019 through the end of last year, RevPAR in Riverside-San Bernardino surged by over 22 percent. That ranked as the fastest increase in California and the fourth strongest among major U.S. hospitality markets during that four-year span. This performance was fueled by the full-service segment, in which RevPAR elevated by almost 30 percent locally across the same interval. Momentum is moderating, however, with overall occupancy set to ease for a second straight year in 2024 while ADR growth holds below 3 percent. Tailwinds that drove room demand over the past few years, such as relaxed health-related restrictions relative to other parts of California and the market’s outdoor recreational appeal during lockdowns, are subsiding. As a result, Palm Springs — where occupancy surged in 2021-2022 — recorded a deceleration in room nights booked last year. Other locations like Ontario-Airport and Central Riverside-San Bernardino, meanwhile, are facing recovery speedbumps as greater international and business travel is necessary to spark sustainable progress in these areas. 
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