PHOENIX, Arizona—According to a new report conducted by Oxford Economics and commissioned by the American Hotel & Lodging Association, the hotel industry in Phoenix, Arizona, has an extensive economic impact. The report found that hotel operations and visitor spending generate $7.2 billion in economic activity, support over 42,000 jobs, and contribute $1.1 billion in federal, state, and local tax revenue.
The new economic impact data also provided a comprehensive look at how Phoenix hotels contribute to communities, highlighting the sector’s role in supporting small businesses and local employment. Annually, hotel guests spend more than $4 billion in Phoenix, equivalent to $641 per room night. In addition to jobs created within hotels, visitor spending in Phoenix and across the state supports a wide range of industries. Taxes generated from hotel operations and guest visits collectively fund essential public services as well.
Statements From Leadership
“Hotels in Phoenix are more than places to stay. They are centers of opportunity,” said Rosanna Maietta, president and chief executive officer of the American Hotel & Lodging Association. “This new report underscores how deeply our industry is woven into the region’s economic and social fabric. When hotels thrive, they create good-paying jobs, support small businesses, and deliver essential tax revenue that benefits every Arizona resident. Continued investment and smart policy will continue to fuel that momentum.”
“Hotels are the backbone of Arizona’s economy,” said Kim Grace Sabow, president and chief executive officer of the Arizona Lodging & Tourism Association. “Hotels support tens of thousands of local workers, source from local businesses, and help keep local communities vibrant. When visitors choose to stay here, their spending ripples far beyond the hotel walls. Our industry’s success is Arizona’s success.”
“Hotels are a cornerstone of the Phoenix economy, driving job creation, supporting small businesses, and generating critical tax revenue,” said Phoenix Councilman Kevin Robinson. “Through smart, forward-looking policymaking, we can ensure the hospitality sector continues to grow and adapt, strengthening our competitiveness and expanding opportunity for communities across Arizona.”
Key Findings
The report’s key findings include:
The hotel industry in Phoenix:
- Generates $7.2 billion in economic activity.
- Directly employs 9,776 hotel jobs, providing $627.9 million in annual wages.
- Supports 42,237 direct and indirect jobs.
- Contributes $538.7 million in annual federal tax revenue.
- Contributes $260.3 million in annual state tax revenue.
- Contributes $257.2 million in annual local tax revenue.
Phoenix is home to 25,164 hotel guest rooms, recording nearly 6.5 million annual hotel room nights sold across 168 hotel properties. The hotel industry’s future investment in Phoenix includes 2,312 hotel rooms in development.
