United States -  Phoenix

The government and education sectors, as well as the construction industry, have long been economic stalwarts in Phoenix, and economic diversification efforts have successfully attracted major employers in the fields of healthcare, technology, and finance 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. The Phoenix metropolitan area tends to achieve occupancy levels in the high 60s during periods of economic strength and stability, and occupancy surpassed the 70.0% mark in 2019. Following the pandemic-related disruption, occupancy rebounded to 97.0% of the 2019 level in 2022, and ADR and RevPAR exceeded pre-pandemic levels. A growth trend continued in 2023, supported by an ADR boost in February because of the Super Bowl, and RevPAR reached an all-time high that year. However, demand levels contracted somewhat during the second half of the year, as alternative destinations became available and price-sensitivity increased, in addition to the return of more typical seasonality trends. The outlook for 2024 is favorable given the continued strengthening of meeting/group events and population growth. Furthermore, economic progression in the region, including the $70-billion TSMC chip-manufacturing project, bodes well for the region.

* 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.

Change In Value For Market:

Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: More than -10%

For more information, please contact:

Zabada Abouelhana
Director, Leader - Arizona Region
Valuation, Market & Feasibility Consulting
[email protected]
  • +1 314 280-2017 (w)
McKenna Luke, MAI
Managing Director
Valuation, Market & Feasibility Consulting
[email protected]
  • +1 303 704-2636 (w)