A Fairmont Hotel and Residences will join the downtown Phoenix skyline in early 2025.
The Fairmont Phoenix will be located on the southwest corner of First Avenue and Jackson Street, marking continued growth in hotel development despite the downturn during the global pandemic.
Fairmont Hotels & Resorts, part of the hospitality group Accor, announced its signing with Thunderbird Legacy Development on June 2.
The 25-story building will include 225 hotel rooms, 34 suites and 151 condominiums ranging from one to three bedrooms.
The developers also plan to realize a restaurant, lobby bar and a rooftop pool with bar and cafe, spa, gym, meeting and retail spaces in the hotel. Residents have access to a separate lounge, pool, gym and entrance.
Heather McCrory, CEO of Accor North and Central America, attributed the move to Phoenix’s recent growth and said in a statement that the new hotel “will be a prominent addition to the region’s growing luxury portfolio.”
Eric Kerr, director of research and business analysis at Visit Phoenix, said Phoenix recovered from the pandemic much faster than the rest of the country.
“We haven’t really slowed down hotel development during the pandemic,” Kerr said.
Visit Phoenix reports that more than 34 new properties have opened in the greater Phoenix area since 2020, including two in the downtown area.
AC Hotel Downtown Phoenix by Marriott will open at Fifth and Van Buren Streets in February 2021, and the Hyatt Place Phoenix/Downtown will open at West Adams Street and Second Avenue in September 2021.
According to a report from the Arizona Lodging and Tourism Association, Central Phoenix suffered the largest drop in hotel occupancy in 2020, although the numbers continue to improve.
In 2021, the greater Phoenix area had an occupancy rate of 59 percent, rising to just over 73 percent in the first three months of 2022, according to the Arizona Office of Tourism.
As conventions revive in city hotels, Kerr expects the numbers to continue to rise and hopefully reach pre-pandemic levels.
In addition to Fairmont Phoenix, six hotel properties are planned for downtown, which could lead to more than 1,000 additional rooms in downtown Phoenix, Kerr said.
Kerr also noted that the Fairmont Phoenix is the first downtown luxury property and that it “will attract a new clientele to downtown Phoenix.”
Developers also hope that Fairmont Phoenix will drive employment growth. Thunderbird Legacy Development co-owns Fairmont Phoenix with the Arizona Opportunities Industrialization Center, a nonprofit organization that offers job training programs.
“I am especially excited about the influx of new jobs that Fairmont Phoenix will bring to the area,” Phoenix Mayor Kate Gallego said in a statement.