Phoenix Hospitality Market Report
2023 Investment Forecast
Returning Events and Expanding Global Businesses Support
Record Occupancy and Sustained Investment
Hotel bookings continue to surge in Phoenix. The metro is anticipated to record a triple-digit occupancy gain for the third consecutive year, as a number of headline sporting events — as well as increased business travel — boost the visitor count far-beyond pre-pandemic norms. The growing popularity of the Waste Management Open, a five-day golf event that brought more than 700,000 fans to Phoenix last year, will especially benefit Scottsdale hotels. A near-90 percent occupancy rate is projected for the area in February when the event takes place, suggesting that last-minute travelers could funnel into nearby locales. Although, rooms may be hard to come by, as Phoenix is also hosting the NFL Super Bowl at the same time. The event is projected to attract at least 70,000 attendees, boosting lodging demand in West Phoenix. Increased drivers exist for other forms of travel as well. Taiwan Semiconductor Manufacturing Company (TSMC) has begun flying over employees from Taipei, placing them in North Phoenix hotels as the firm gears up for the opening of its manufacturing facility in early 2024. Longer term, this could potentially generate additional hotel demand as international families visit new residents in Phoenix. This combination of factors driving visits to the metro will push occupancy up to a record high during 2023.