Velvet Rope Hotel Owner Forced to Sell Home to Save Business One Year After Palm Springs Bombing

The community of Palm Springs is marking the somber one-year anniversary of the May 17, 2025, terrorist car bombing. While much of the physical wreckage has been cleared from the site of the blast, local small businesses continue to struggle with the deep financial and emotional wounds left in its wake. Among those hardest hit is the Velvet Rope Hotel, a boutique property located directly across the street from the center of the explosion.

Hotel owner David Rios recalled the morning of the disaster vividly, noting that the sheer force of the blast initially led him to believe a helicopter had crashed nearby. Upon arriving at his property shortly after the explosion, Rios found the hotel at full capacity and surrounded by a nightmare of black smoke, shattered windows, blown-out doors, and ruined air conditioning units.

Despite the violence of the impact, which threw guests from their beds and scattered vehicle debris across the roof and pool area—including seatbelts, medical devices, and the car's igniter—miraculously no injuries or fatalities occurred on the property. Rios considers it a blessing that his guests walked away unharmed, given how close they came to the lethal explosion.

However, surviving the initial blast was only the beginning of a prolonged economic crisis for the boutique hotel. Following inspections, Rios was informed by his insurance provider that his claim was denied due to a terrorism exclusion clause. Rios pursued legal action to dispute the denial but ultimately lost in court, leaving him entirely responsible for 250,000 dollars in emergency remodeling and structural repairs.

The lack of financial protection forced Rios into a devastating position. To keep the doors of the Velvet Rope Hotel open and protect his livelihood, he was forced to liquidate his personal assets and sell his home.

While larger corporate neighbors like the nearby Denny's and a local liquor store possessed the necessary insurance policies to fund quick structural recoveries, independent business owners like Rios have faced a much steeper climb. One year later, visible damage remains on parts of the property, but Rios remains determined to keep moving forward, crediting the tightly-knit Palm Springs community for helping him endure the ongoing recovery process.

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