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

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)

Deeper Dive: News & Info About This Topic

HERE Resources

Dallas Leads in U.S. Hotel Construction Pipeline
Dallas Leads U.S. Hotel Construction with Record Pipeline
Chicago’s Economic Indicators and Fed Meeting Impacting Real Estate Market
MotivatedSellers.com Rebrands to Enhance Real Estate Lead Generation
The REMI. Scottsdale Hotel Opens in Entertainment District
Record Transactions Transform Arizona’s Real Estate Market
Surge in House Fire Fatalities in Phoenix Raises Alarms
Major Human Smuggling Operation Launched in Phoenix
Luxury Healing Sanctuary for Sale in Phoenix
Tidewalk Partners Wins REIAC/Rockefeller Group Challenge

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