In addition to rooms, the Hyatt Regency will have 24 residentialcondominiums, 4,000-sf spa and 13,000 sf of meeting space when itopens in 2011. The hotel is being developed by the Chicago-basedGlobal Hyatt Corp. in partnership with Valhalla Development Groupof Scottsdale. The hotel is part of the 41-acre Hayden FerryLakeside, a SunCor Development Co.-owned mixed-use development at80 E. Rio Salado Pkwy. at Tempe Town Lake.

Donald Arones, senior vice president in Grubb & Ellis/BRECommercial LLC's Phoenix office, says the area can use afull-service, amenity-heavy hotel like the Hyatt Regency. Althoughthe Tempe Mission Palms at 60 E. 5th St., near the Arizona StateUniversity campus, has been around for awhile, demand for hotelrooms and meeting space has been growing.

"The studies that have been done over the past couple of yearsindicate a shortage of rooms," Arones says. "A lot of people whowant to stay in Tempe can't so they're going into Scottsdale orPhoenix."