The government and education sectors and the construction industry have long been economic stalwarts in Phoenix, and economic diversification efforts have attracted major employers in the healthcare, technology, and finance fields over the past decade. The Phoenix lodging market benefits from annual major events, such as MLB Spring Training, the Barrett-Jackson Classic Car Auction, and the Waste Management Phoenix Open. Greater Phoenix tends to achieve occupancy levels in the high 60s during stable periods, with occupancy surpassing 70.0% in 2019. Following pandemic disruptions, RevPAR exceeded pre-pandemic levels in 2022. In 2023, ADR spiked during the Super Bowl, driving record-high RevPAR, though demand softened later in the year given the rising price sensitivity and seasonal shifts. While occupancy remained relatively stable throughout 2024, both ADR and RevPAR declined, attributed primarily to a post-Super Bowl rate correction. Given the negative effects of the changes to U.S. federal policies on international and domestic markets in 2025, larger meetings and events were less prevalent in the market, resulting in moderate occupancy and RevPAR declines, with ADR remaining relatively stable. However, the continued growth of Greater Phoenix's population and the economic progression occurring throughout this region are positive factors.

* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

Change In Value For Market:

Phoenix RevPAR Change

Phoenix RevPAR

For more information, please contact:

Zabada Abouelhana Senior Director, Leader - Phoenix-Salt Lake City Region Valuation, Market & Feasibility Consulting [email protected] +1 314 280-2017 (w)