Phoenix Among Top U.S. Cities for Hotel Construction in 2025

Phoenix Climbs into Top Tier of U.S. Hotel Construction Markets

Phoenix has solidified its place as one of the nation’s hottest hotel development markets, ranking fourth in the country for the size of its construction pipeline at the close of the first quarter of 2025, according to a new report from Lodging Econometrics (LE).

The U.S. Hotel Construction Pipeline Trend Report revealed that Phoenix is currently home to 126 hotel projects totaling 16,490 rooms, placing it just behind Dallas (203 projects/24,496 rooms), Atlanta (166/19,149), and Nashville (127/16,589). Austin follows closely behind Phoenix with 124 projects/14,514 rooms.

Notably, both Austin and Dallas achieved all-time-high project and room totals. The report noted, “Dallas leads with 203 projects/24,496 rooms, a new all-time-high room total representing 9% project and 11% room growth year-over-year (YOY),” and added that “Austin… also achieved new all-time-high project and room totals, showing impressive 11% project and 9% room growth YOY.”

Phoenix Leads in Projects Under Construction

Phoenix is also making waves in active construction. At the end of Q1 2025, Phoenix ranked second nationally for number of hotel projects currently under construction, with 34 projects totaling 5,023 rooms already underway. That places the city just behind New York (39 projects/7,064 rooms) and ahead of Dallas (31/3,706), Atlanta (26/3,182), and California’s Inland Empire (22/2,399).

23 Phoenix Hotel Openings Expected by 2026

Looking ahead, the report forecasts strong growth through 2026. LE analysts project 848 new hotels with 92,892 rooms will open nationwide by year-end 2026. Phoenix is expected to be a major contributor to that total, with 23 new hotel openings totaling 3,587 rooms, tying the Inland Empire in number of new properties opening that year.

Here are some of the key Metro Phoenix hotel projects scheduled to open between now and May 2026:

• June 2025: Candlewood Suites Mesa – Phoenix East (108 rooms); The Remi Scottsdale Autograph Collection (161 rooms)
• July 2025: Fairfield Surprise Prasada (60 rooms); TownePlace Suites Surprise Prasada (50 rooms)
• August 2025: La Quinta Inn & Suites by Wyndham Phoenix (95 rooms)
• September 2025: My Place Hotel-Phoenix East/Mesa (88 rooms); SpringHill Suites by Marriott Surprise (106 rooms)
• October 2025: AC Hotel Phoenix North Happy Valley (183 rooms); element Phoenix North Happy Valley (95 rooms)
• November 2025: Fairfield by Marriott Inn & Suites Casa Grande (70 rooms); TownePlace Suites by Marriott Casa Grande (70 rooms)
• December 2025: VAI Resort (1,100 rooms) — One of the largest individual projects in the region
• January–May 2026: Home2 Suites Goodyear, LivAway Suites (Tolleson, Glendale, Surprise), Residence Inn Phoenix Gilbert, AC Hotel Scottsdale Old Town, Hampton Inn Buckeye, Homewood Suites Gilbert, SpringHill Suites Phoenix Gilbert, Home2 Suites Peoria North — each bringing between 103 and 168 rooms to the market

Hospitality Boom Driven by Tourism and Events

Phoenix’s growth is being driven by strong tourism, population increases, and major event hosting, including the Super Bowl, spring training, and tech conventions. This steady demand for both business and leisure travel is prompting developers to move aggressively to secure their share of the market.

LE’s trend data supports the outlook that Phoenix will remain a top-tier destination for hotel construction and investment, especially with multiple new properties poised to open by mid-2026 and the city's infrastructure keeping pace with rapid expansion.

Originally reported by AZ Big Media.