While the rest of the country scales back hotel development, the Phoenix metro area is ramping up, a potential signal of broader economic strength and demand across sectors. Here’s what real estate investors should know:
Key Points:
- Hotel Construction Up 22.4%: 4,079 rooms under construction as of June 2025, bucking national trends which show a sixth consecutive monthly decline.
- Final Planning Up 19.1%: 6,667 hotel rooms are in the final planning stage, signaling more development in the pipeline.
- Major Projects Include:
- Vai Resort (Glendale): 1,100 rooms.
- AC/Element City North Hotel: $92M dual-branded project with 240 rooms.
- LivAway Suites: Multiple extended-stay projects throughout the Valley.
- Renovations Also Booming: 3,143 rooms are currently under renovation or conversion, including:
- The Monarch in Scottsdale ($23.5M renovation)
- Kimpton Hotel Palomar ($5.5M refresh)
- JW Marriott Scottsdale Camelback Inn ($24M spa upgrade)
Investor Takeaways:
- Phoenix’s ongoing hotel investment suggests confidence in long-term tourism and business travel.
- Hospitality demand could drive spillover benefits for nearby residential rentals, short-term housing, and mixed-use developments.
- Landlords in the area should anticipate continued infrastructure and tourism-related investments — especially around high-traffic zones like Glendale and Old Town Scottsdale.