Following several years of strong RevPAR growth leading up to Super Bowl XLIX in 2015, growth in the Phoenix market has slowed somewhat. ADR growth was modest in 2016, as much of the market experienced a post-Super Bowl correction, but ADR rebounded in 2017.
The Tucson lodging market often lives in the shadow of its bigger sibling, Phoenix. And while meeting and group demand in both markets is driven by Arizona's idyllic weather during the winter and spring, differences in local dynamics paint significantly different pictures in terms of leisure and commercial demand.
Tucson, like much of the Southwest, has undergone a prolonged recovery since the 2008/09 recession. Tucson's hotel market realized unprecedented growth in the years leading up to 2008. But the hotel supply pipeline has been muted in recent years, and hotel performance still falls short of the prior peak.