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Market Report

Phoenix Hospitality Market Report

2024 Investment Forecast

Nation-Leading Construction Warranted by Demand,
Underpinning Elevated Hotel Asset Values

Surging nightly stays help hotels navigate record supply. In terms of room inventory, no other major market expects more growth than Phoenix this year. An all-time high of 3,650 keys — or 5.1 percent of the existing room count — are scheduled for delivery in 2024. While the supply wave has the potential to challenge hotel performance in the near-term, this year’s occupancy increase is still anticipated to exceed what was noted in 2023 by 60 basis points. On top of several 500,000-plus attendee events — including the Waste Management Open and the Barrett-Jackson auto show — new sports tournaments and attractions will come to town in 2024, helping lift yearlong booking volumes above 18 million room nights for the first time on record. In April, the Men’s NCAA Final Four takes place at West Phoenix’s State Farm Stadium, only months before Mattel’s new Adventure Park opens just across the street. The area is cementing its ability to handle nationally-attended events, after hosting Super Bowl LVII in 2023, with these prospects eliciting activity from hotel builders. Nearly 2,300 rooms were underway in West Phoenix at 2024’s open, the highest among any U.S. submarket, and a total that exceeds the entirety of 29 other major metros. 
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