Dive Brief:
- Pacific Hospitality Group, in partnership with Berger Holdings and JWG Investments, will open a 236-room luxury lifestyle hotel in downtown Phoenix in 2026, the Irvine, California-based company announced Monday.
- When completed, the hotel will feature 23,000 square feet of meetings and events space, an upscale restaurant and bar, a rooftop bar and pool deck with skyline views, a luxury spa, a fitness center and an upscale cafe.
- With the property, part of Pacific Hospitality Group’s Meritage Collection, its partners hope to “elevate” the hospitality offerings in downtown Phoenix, a market Pacific Hospitality Group believes “holds incredible growth potential.”
Dive Insight:
Minneapolis-headquartered construction firm Mortenson broke ground on the property earlier this month. Gensler is leading architecture for the hotel, while interior design firms Style Haus and Wild Muse are working on interiors inspired by the Arizona desert.
Darryl Berger, founder and CEO of Berger Holdings, said in a release that the hotel’s strategic location at downtown Phoenix’s Central Avenue and Adams Street will make it “a new hub for business, dining, and entertainment.” JWG Investments Managing Partner John Graham echoed the sentiment, adding: “This project will not only attract discerning travelers but also serve as a dynamic space for the community.”
Pouya Honari, head of investments at Pacific Hospitality Group, said the group is “particularly excited” about investing in the Phoenix market, “which we believe holds incredible growth potential.”
The hotel’s location falls within a Department of Housing and Urban Development-designated Opportunity Zone, which offers preferential tax treatment for some properties in locations that have experienced a lack of investment.
“This project supports the ongoing revitalization of downtown Phoenix,” Honari said in a statement. “We have great confidence in the future of this vibrant city and are committed to being a part of its dynamic growth.”
Earlier this year, private equity real estate firm Henderson Park made a $705 million bet on the Phoenix market with its buy of the Arizona Biltmore resort. And another independent luxury hotel in Phoenix, Global Ambassador, opened its doors late last year.
The Phoenix metropolitan area has emerged as a leading destination for luxury and business travelers in recent years, experts previously told Hotel Dive. The number of visitors to the metro area grew 4.7% year over year to 46.7 million visitors in 2023, according to an economic impact report by Tourism Economics, and visitor spending increased to $12.9 billion, up 7.6% over the prior year.
Pacific Hospitality Group currently has 12 hotels in its portfolio, including Meritage Collection properties in Huntington Beach and Napa, California; Kauai, Hawaii; and Austin, Texas.