Arizona Hotel Development, Construction & Transactions

Arizona's hotel development pipeline reflects steady investment across the state, with upscale and upper upscale projects accounting for a significant share of new rooms under development. Lodging Development currently tracks 72 hotel projects totaling 10,963 rooms at various stages of planning and construction. Transaction activity has also been notable, with 28 deals of $10 million or more recorded over the most recent 18-month tracking window. Meanwhile, 29 hotels comprising 3,699 rooms have opened across the state in the past 24 months, underscoring sustained demand for new lodging supply.

Upscale projects represent the largest segment of Arizona's development pipeline by project count, with 22 properties totaling 2,911 rooms currently tracked by Lodging Development. Upper upscale projects follow with 11 properties and 3,176 rooms, while upper midscale and midscale tiers contribute 14 and 12 projects, respectively. Among the projects currently tracked, the VAI Resort stands out as the single largest, with 1,100 upper upscale rooms under construction by VAI Global Development. LaPour Partners is developing the dual-branded AC Hotel and Element Phoenix CityNorth, a 240-room upscale project also in construction. The Moxy Glendale, a 205-room upper midscale property being developed by The North Central Group, and the 129-room Wingate by Wyndham and Hawthorn Suites SkyBridge from SkyPlus Developments Corp. are among additional active projects. One luxury project with 155 rooms is also in the pipeline, along with seven economy-scale developments.

Arizona has seen 29 hotel openings totaling 3,699 rooms over the past 24 months. Among the most recent, the AC Hotel Scottsdale Old Town opened in early March 2026 with 168 upscale rooms, while the WoodSpring Suites Tucson Medical Center added 122 economy rooms in late April 2026. The TownePlace Suites Thatcher, a 69-room upper midscale property, also opened in April 2026. Late 2025 saw several notable deliveries, including the 277-room dual-branded AC Hotel and Element Phoenix Norterra in November and the Home2 Suites Goodyear Phoenix West, which opened in late December with 112 rooms. Extended-stay products have been well represented among recent openings statewide.

Over the past 18 months, Lodging Development has tracked 28 hotel transactions of $10 million and above across Arizona, with documented sale prices totaling approximately $1.43 billion across 21 of those deals. Among the most prominent, the 1,003-room Sheraton Phoenix Downtown traded in late October 2025 with Brookfield Properties Corp. as the buyer. The Embassy Suites Flagstaff, a 119-room upper upscale property, sold for $14.5 million in October 2025 to Baywood Hotels. Earlier in the window, the SpringHill Suites Phoenix West/Avondale changed hands in June 2025 for $28.6 million, acquired by Peachtree Group. These transactions reflect continued investor interest across Arizona's hotel market, spanning both large urban assets and smaller regional properties.