Hotel Developers Target Phoenix Property for Construction

The national hotel market is finally regaining strength after surviving an almost crushing blow after 9/11. An estimated “917 hotels with 100,559 guest rooms will open in 2007 nationwide, the highest total for new openings since 2001.”

Hotel developers are primarily targeting larger tourist destinations, making Phoenix property some of the most desired. Developers are interested in Phoenix property located on main highways near the outer suburbs, “mostly in the upscale, midscale and economy segments,” while inside of the city they want Phoenix property in prime locations.

A lot of older Phoenix property is being demolished to make room for new hotel and condo-hotel construction. This new development is replacing vanishing hotel inventory and refreshing the city’s current inventory, which is positive for investors, hotel operators and consumers.