Arizona Hotel Development, Construction & Transactions

Arizona's hotel development pipeline reflects sustained investment across a range of property types, with upscale projects accounting for the largest share of active construction and planning activity. Lodging Development currently tracks 73 projects totaling 11,018 rooms statewide. Transaction activity has been substantial, with 31 sales of $10 million and above recorded over the most recent 18-month tracking window. Recent openings continue to diversify the state's lodging supply, with 26 properties delivering 3,339 new rooms over the past 24 months.

Among the projects currently tracked by Lodging Development in Arizona, the upscale tier leads the pipeline with 26 projects totaling 3,606 rooms, followed by upper midscale and upper upscale segments with 13 and 11 projects, respectively. Midscale and economy projects round out the pipeline with 11 and 6 projects each. The largest single project under construction is VAI Resort, a 1,100-room upper upscale development by VAI Global Development. Also in construction, the AC Hotel | Element Phoenix CityNorth is a 240-room dual-branded upscale property developed by LaPour Partners. The North Central Group is building the 205-room Moxy Glendale, while SkyPlus Developments Corp. is advancing the 129-room Wingate by Wyndham | Hawthorn Suites SkyBridge. In total, the 73 tracked projects represent 11,018 rooms across all stages of development.

Arizona has welcomed 26 hotel openings totaling 3,339 rooms over the past 24 months. Among the most notable recent additions is the 277-room AC Hotel | Element Phoenix Norterra, an upscale dual-branded property that opened in late 2025. The 168-room AC Hotel Scottsdale Old Town followed in early 2026, adding upscale inventory to one of the state's most established hospitality markets. Extended-stay and economy brands have been particularly active, with openings such as the WoodSpring Suites Tucson Medical Center, LivAway Suites Glendale, and Echo Suites Peoria each delivering over 120 rooms. The Home2 Suites Goodyear Phoenix West and TownePlace Suites Thatcher further expanded upper midscale options in suburban and secondary markets.

Over the past 18 months, Lodging Development tracked 31 hotel transactions of $10 million and above across Arizona. Among the 22 transactions with confirmed pricing, documented sale volume totaled approximately $1.44 billion. The most significant transaction during this period was the sale of the 1,003-room Sheraton Phoenix Downtown, acquired by Brookfield Properties Corp. This upper upscale asset stands as one of the largest hotel properties in the state by room count. In other notable activity, Hospitality Capital Partners acquired both the 155-room Sonesta Select Phoenix Chandler and the 160-room Sonesta Select Tempe Downtown in December 2025. Volume figures represent transactions meeting the $10 million threshold only, and actual total market activity is broader than what is captured here.