Phoenix officials say convention center expansion produced millions of visitors and $5.2 billion in economic activity; downtown needs more hotels

City staff told Phoenix’s Economic Development and the Arts Subcommittee on Dec. 10 that the Phoenix Convention Center’s expansion has driven millions of visitors and billions in spending, but downtown’s shortage of convention‑caliber hotel rooms has already cost the city meetings and revenue.

Jerry Harper, director of the Phoenix Convention Center, said the center’s final expansion phase, completed in 2009, multiplied exhibit space and helped grow attendance from an estimated 411,000 in a no‑build scenario to roughly 3.2 million in the build scenario. Harper told the committee that the average attendee spend used in the center’s economic model is $1,428 per person and that the cumulative economic impact since the expansion is about $5.2 billion.

The numbers underpin a pitch to close a downtown lodging gap. “If we had to pick one thing right now, I would say additional hotel rooms in downtown,” Harper said. Ron Price, president and CEO of Visit Phoenix, added that the city is regarded as a “top tier” destination but that other U.S. cities are investing heavily in convention and hotel capacity.

Why it matters: staff and Visit Phoenix presented evidence that a lack of nearby hotel rooms has led to lost conventions. Harper reported that between 2021 and 2025 the city tracked 276 meetings judged to be lost specifically because of insufficient downtown rooms — about 977,000 potential attendees — a loss that translates into missed hotel, restaurant and tax revenue.

Competitive pressure and recommended scale: Visit Phoenix and consultant work cited by staff recommended exploring an 800–1,200‑room convention hotel physically connected to a new South building on the convention center campus. Price and staff said private developers and hotel brands have expressed interest but are waiting for an RFP or RFQ. Staff and Visit Phoenix also said demand could justify more than 1,200 rooms in the long term; Price said his team uses rooms‑to‑space ratios and competitor comparisons when gauging that need.

Costs and scale: presenters gave order‑of‑magnitude cost guidance rather than final budgets. Price said upper‑upscale convention hotel construction typically ranges from about $70,000 to more than $100,000 per room. On the convention center side, expansion projects can run in the hundreds of millions; presenters cited example ranges of roughly $600 million to $800 million for significant new construction, noting other cities are investing billions on expansions.

Recent and upcoming events: presenters pointed to a busy recent summer that included Phoenix Fan Fusion and several large conventions; Harper highlighted Semicon West’s first Phoenix activation, saying the event saw more than 20,000 participants and visitors from more than 52 countries and will return in 2027. Staff also listed imminent and near‑term bookings including Urbana 25 (December), the International Science and Engineering Fair (ISEF) and National Postal Forum (May 2026), and the NCAA women’s Final Four and the 2027 NBA All‑Star Weekend as marquee future events.

Questions from council: council members pressed staff on whether Phoenix remains a top‑tier destination and what it would take to attract large national conventions. Councilwoman Pastor asked whether the subcommittee would later be asked to approve a specific action; staff said this update was informational but that they are prepared to return with recommendations and that they anticipate bringing proposals back in March for further direction, including an RFP/RFQ to solicit private partners.

Community engagement: students from North High School attended and asked whether convention investments benefit local residents and tax dollars; Harper and other staff explained that visitor spending contributes to general fund revenue that supports city services and that large hotels and expansion projects create construction and permanent jobs through a ‘halo’ effect.

Votes at a glance: The committee approved the minutes from the Nov. 12, 2025 meeting by voice vote; the chair stated that “the motion passes unanimously.”

Next steps: staff said they will return in spring (March or April) with additional information and options, and councilmembers signaled interest in issuing an RFP/RFQ to draw developer proposals for connected hotel and convention campus development.