The Valley Hotel and Resort Association, which represented more than half the properties in the Valley, has thrown their support behind the proposed site in Tempe. Another 50 hotel properties in the East Valley plan to launch their own campaign on behalf of the Tempe site.

The association choose to endorse the Tempe site because it offers the most benefit to its members. The organization expressed concern that if the West Valley site is chosen and a number of new hotels are built, there will be a glut of rooms that drives down rates and raises vacancies. The hotel industry's endorsement should weigh heavily on the Tourism and Sports Authority final decision. The TSA, which is charged with making the site selection, is well aware that the 1% bed tax is a major portion of the public funds that will be used to build the stadium. The bed tax is expected to generate about $800 million over 30 years.

Tempe has now picked up two important backers of its proposed site. Earlier in the week, organizers of the Fiesta Bowl, the other major tenant at the stadium, threw its support behind the Tempe site too.

Tempe is also negotiating with the Arizona Cardinals as a financial partner in the venture, but no agreement has been reached yet.

The Tempe site is at the northeast corner of Loop 202 and Priest Drive, just north of the Tempe Town Lake. There is a concentration of hotels in the Tempe, east Phoenix and Scottsdale area.

A lack of nearby hotel is one of the major drawbacks of the West Valley site. But backers there say that they have 84 hotels within 12 miles of the site, and that developers would be quick to build new properties if the site won. The West Valley site is at the northwest corner of Thomas Road and the Loop 101, about 15 west of downtown Phoenix.

Instant Insights /

Hotel Industry Backs Tempe Site for $335-Mil Stadium

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