Phoenix Hospitality Market Report

Corporate and leisure travel fuel demand for overnight stays in Phoenix. The metro’s hotel sector is slated for its fourth occupancy increase in five years, driven by TSMC’s $65 billion semiconductor facility in North Phoenix and Intel’s expanding Chandler fab, both of which fuel midweek corporate bookings. Leisure travel, which is historically supported by marquee events such as the Waste Management Open and Cactus League Spring Training, should receive a boost at the end of 2025 when the Mattel Adventure Park opens in the West Valley. Meanwhile, the VAI Resort in Glendale begins phased openings this year, adding 1,100 rooms that further elevate the area’s tourism profile. Although only 1,350 keys delivered in 2024, roughly 2,300 more are scheduled for 2025, reflecting developer confidence despite tighter lending conditions. Upper-upscale hotels are poised for the strongest occupancy gains, as growing conference activity help sustain the region’s hospitality momentum this year.