Phoenix, July 29, 2025
News Summary
Phoenix is experiencing a notable increase in hotel room development, positioning itself fourth in the U.S. for ongoing hotel construction. With 126 hotel projects and 16,490 hotel rooms planned, the city is only behind Dallas, Atlanta, and Nashville. Several significant hotel developments are set to open in the coming months, including the VAI Resort and Candlewood Suites Mesa. Additionally, city officials are planning to redevelop the Regency parking garage into a new hotel to accommodate the rising demand for convention spaces.
Phoenix Experiences Hotel Construction Surge Amid National Slowdown
Phoenix is witnessing a significant surge in hotel room development, ranking fourth in the United States for hotel construction despite a nationwide slowdown in the industry. As of the close of Q1 2025, the city boasts an impressive pipeline of 126 hotel projects and 16,490 hotel rooms. This positions Phoenix behind only Dallas, Atlanta, and Nashville in terms of ongoing hotel construction efforts.
According to the U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics, nationwide, a total of 848 new hotels with 92,892 rooms are projected to open by 2026. Notably, Phoenix has 34 active projects with 5,023 rooms currently under construction, placing it second only to New York City for ongoing hotel construction.
Upcoming Projects in Phoenix
Several major hotel projects are slated for completion in Phoenix within the next year. Key developments include:
- Candlewood Suites Mesa – Expected to open in June 2025, featuring 108 rooms.
- The Remi Scottsdale Autograph Collection – Scheduled for completion in June 2025, offering 161 rooms.
- Fairfield Surprise Prasada – Anticipated opening in July 2025, with 60 rooms.
- AC Hotel Phoenix North Happy Valley – Set to launch in October 2025, consisting of 183 rooms.
- VAI Resort – A massive project anticipated to finish in December 2025, featuring 1,100 rooms.
Future Development Plans
Phoenix city officials are currently preparing to issue a request for proposals to redevelop the Regency parking garage into a hotel with a minimum of 400 rooms. Past attempts to convert the garage into a hotel faced delays due to the COVID-19 pandemic. The city aims to establish a full-service hotel to address the rising demand for convention spaces, as Phoenix has fewer hotel rooms than competing cities.
Currently, there are 4,489 hotel rooms within a half-mile radius of the Phoenix Convention Center, with an additional 465 room projects in the construction pipeline. A study has suggested that an increase of between 800 to 1,200 hotel rooms near the convention center is necessary for Phoenix to effectively attract conventions and large events.
The solicitation for proposals regarding the Regency garage project is scheduled to be presented to the Phoenix City Council in March, followed by a review process.
Extended-Stay Hotels on the Rise
Additionally, LivAway Suites and West77 Partners have begun construction on a new extended-stay hotel located in Tolleson, Arizona. This development is part of a broader expansion strategy throughout the Phoenix region. LivAway Suites has plans to invest about $100 million in Arizona over the next two years, aiming to establish multiple locations with a goal of having 50 locations operational or under construction nationally by the end of 2026.
Conclusion
As Phoenix continues to develop its hotel infrastructure, the city is positioning itself to meet the growing demands of tourism and conventions, setting ambitious goals to expand its lodging capacity significantly.
FAQs
What is the current status of hotel construction in Phoenix?
Phoenix is experiencing a surge in hotel construction with 126 projects and 16,490 hotel rooms planned, making it fourth in the nation for hotel projects.
Which city has the most hotel projects in the U.S.?
Dallas leads the nation with 203 projects and 24,496 hotel rooms.
When are the major hotel projects in Phoenix expected to open?
Significant projects are set to open between June 2025 and December 2025, including hotels like Candlewood Suites Mesa and VAI Resort.
How many hotel rooms are there near the Phoenix Convention Center?
Currently, there are 4,489 hotel rooms within a half-mile of the convention center, with plans to increase capacity significantly.
Are there any plans for new hotel developments in the future?
Yes, the city is looking to redevelop the Regency parking garage into a hotel with at least 400 rooms, facing previous delays due to the pandemic.
Key Features of Hotel Construction in Phoenix
| Rank | City | Number of Projects | Number of Rooms | Upcoming Projects |
|---|---|---|---|---|
| 1 | Dallas | 203 | 24,496 | N/A |
| 2 | Atlanta | 166 | 19,149 | N/A |
| 3 | Nashville | 127 | 16,589 | N/A |
| 4 | Phoenix | 126 | 16,490 | VAI Resort (1,100 rooms), AC Hotel (183 rooms) |
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Additional Resources
- AZ Big Media: Phoenix Ranks in Top 5 for Largest Hotel Construction Pipeline
- AZ Central: Hotel Development Sought for Site of Downtown Phoenix Parking Garage
- ReBusiness Online: Phoenix Development Begins Construction on 264-Room Dual-Branded Hotel
- Wikipedia: Phoenix, Arizona
- Encyclopedia Britannica: Phoenix
