What's driving Arizona's luxury hotel boom
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When Sam Fox was five years old, his family relocated from Chicago to Tucson in pursuit of a sunnier climate. Back then, the quiet college town was not particularly remarkable, situated with a stunning mountainous backdrop.

However, in 1992, at the age of 20, Fox made the bold choice to drop out of school and venture into the restaurant business, inspired by his parents’ success in the industry. With funds originally intended for tuition, he established Gilligan’s Bar and Grill, an establishment with an island theme, with the support of friends and family. While this decision may have seemed risky at the time in the tranquil Arizona setting of the past, it has certainly paid off in the present day.

Over the course of the following thirty years, Fox transformed his small grill into a culinary empire. By 2019, he had sold his enterprise to the Cheesecake Factory for a staggering $440 million. This transaction underscored the growing appeal of Arizona, not solely for those in search of sunshine but also for individuals seeking refuge from congested and crime-ridden urban areas nationwide.

Today, the Grand Canyon State is a byword for approachable luxury living.

“It’s just easy to live here,” said Fox. “You can afford a house. You don’t have to have a 2-hour commute. The schools are decent. It’s a major metropolitan city without the stress of LA. A lot of things are moving in the right direction.”

Recently, the tragic Los Angeles wildfires, as well as sky-high housing prices and a rising crime rate, have driven an unprecedented number of Californians to cross the state line.

That influx of new blood — 1 million people had already moved to the state between 2010 and 2023 — is supporting a hospitality boom.

“It’s just easy to live here. You can afford a house. You don’t have to have a 2-hour commute. The schools are decent. It’s a major metropolitan city without the stress of LA. A lot of things are moving in the right direction.”

Sam Fox

In late 2023, Fox opened his first hotel, the Global Ambassador (from $600 per night) in Phoenix — now, arguably Arizona’s finest hotel.

Designed to resemble a Parisian apartment building, it weighs in with 141 rooms, five restaurants, a 9,000-square-foot fitness center and an 18,000-square-foot rooftop lounge (the largest in the state).

For all of 2024, its members-only Global Ambassador Club, which requires a one-time initiation fee of $90,000 and monthly dues of $1,000, was the state’s most coveted reservation.

Elsewhere in town, the Hotel Valley Ho (from roughly $400 per night) has launched a host of new experiential packages aimed at leveling up guests’ options (Rock climbing in the mountains? A James Beard Award-winning supper? A Frank Lloyd Wright house tour? Just make it part of your booking).

Meanwhile, Mountain Shadows (from $500) opened a new pool, dubbed Sunset, set against views of Camelback Mountain.

Head north of the city, to wellness resort Civana (from $679), and you’ll find a new club led by all-star runners Sara Hall and Sara Slattery. And last year, the Camby hotel (from $439) underwent a complete renovation of its lobby, common spaces and 279 guest rooms and launched a new restaurant concept, Yellowbell.

But it isn’t just Phoenix that is witnessing a hotel and restaurant revolution — it’s a state-wide phenomenon.

Over in ritzy Scottsdale, the Scottsdale Resort just unveiled a new luxury offering with their Stillman Villas (from $1,450 per night). These 12- and 14-person residences comes with sweeping desert and golf course views.

After a swing, seek out the resort’s swanky speakeasy called the Madam.

In Tucson, Miraval Arizona (from $1,600; MirivalResorts.com) is celebrating its 30th anniversary with the rollout an all-inclusive wellness option. It lets you test drive all the resort has to offer (like equine therapy).

An hour outside Phoenix, Castle Hot Springs (from $2,125) is launching a series of new programs, including a “Wellness Through Water” package that includes a private Watsu bodywork session, wherein a therapist works with clients while submerged in warm water.

“Phoenix used to be a destination stop for snowbirds to play tennis,” said Adam Goldberg, who owns the Creekside Inn (from $325) in Sedona, one of the areas most popular properties. “Now, a lot of people are making their homes here. A lot of celebrities left California for Arizona because it’s ‘cool’ to be rich in Phoenix and Scottsdale. There are not a lot of places where you can pull up in a Ferrari and someone doesn’t jack you.”

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