Phoenix, Ariz. (March 12, 2026) – According to a new ⁠economic impact report conducted by Oxford Economics, Phoenix’s hospitality industry continues to serve as a powerful engine for growth and opportunity. The report – commissioned by the American Hotel & Lodging Association – details the hotel industry’s far-reaching economic impact in Phoenix, finding 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 provides a comprehensive look at how Phoenix hotels contribute to communities, highlighting the sector’s integral role in fueling 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, including restaurants, retail, and arts and entertainment. Taxes generated from hotel operations and guest visits collectively fund essential public services – from schools and infrastructure to first responders.

“Hotels in Phoenix are more than places to stay. They are centers of opportunity,” said Rosanna Maietta, President & CEO 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 CEO 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 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. 

View the full report here.

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About AHLA

The American Hotel & Lodging Association (AHLA) is the largest hotel association in America, representing more than 30,000 members from all segments of the industry nationwide – including iconic global brands, 80 percent of all franchised hotels, and the 16 largest hotel companies in the U.S. Headquartered in Washington, D.C., AHLA focuses on strategic advocacy, communications support, and workforce development programs to move the industry forward. Learn more at www.ahla.com.

About AzLTA

The Arizona Lodging and Tourism Association (AzLTA) is the leading statewide public policy organization advocating for Arizona’s hospitality, sports, lodging, and tourism industry. Founded in 1938, the association represents statewide hotels and resorts, tourism attractions, destination marketing organizations, sports teams, airlines, airports, and related business partners. The Arizona Lodging and Tourism Association is focused on advocacy, collaboration, and education to generate support and increase awareness of the profound impact the lodging and tourism industry has on Arizona jobs, tax revenues, and economic growth. Learn more at www.azlta.com.