Phoenix hotels generate billions in economic activity, report says, with more in pipeline

Article originally posted on Phoenix Business Journal on March 18, 2026

The hotel industry adds billions of dollars in spending to the Phoenix area, according to a report from the American Hotel & Lodging Association.

The report, which was released last week, showed that hotel operations in Phoenix and spending by visitors of those hotels produce $7.2 billion in economic activity in the city annually.

The American Hotel & Lodging Association (AHLA), which commissioned Oxford Economics to do the research for the report, argues that the data shows hotels do not just generate revenue for themselves, but by existing, hotels support a variety of industries, including restaurants, retail and arts and entertainment.

“Hotels in Phoenix are more than places to stay. They are centers of opportunity,” Maietta, AHLA’s president and CEO, said in a statement. “When hotels thrive, they create good-paying jobs, support small businesses, and deliver essential tax revenue that benefits every Arizona resident.”

The report showed that Phoenix hotel guests spent $4.1 billion at hotels and local businesses and transportation during their stays. That equates to about $641 spent per room night.

“When visitors choose to stay here, their spending ripples far beyond the hotel walls,” Kim Grace Sabow, the president and CEO of the Arizona Lodging & Tourism Association, told the Business Journal. “Our industry’s success is Arizona’s success.”

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