Developer Plans $55 Million Downtown Hotel
By FBN (Flagstaff Business News)
Graduate by Hilton Flagstaff seeks ties to NAU. Development of the Graduate by Hilton Flagstaff hotel is underway at Beaver Street and Birch Avenue. The downtown hotel and an adjacent parking garage will replace Flagstaff’s former City Hall, built in 1951, and what originally was a Valley National Bank east of the old city building.
Capri Inc., based in Tucson, is developing the property with an investment of $55 million, according to CEO Jim O'Connell. The city is reviewing Capri’s plans for the garage and hotel, which is slated to open in 2029.
Flagstaff Business News reached out to O’Connell with questions about the project, and he provided the following responses:
FBN: What interested you in developing and managing the Graduate by Hilton Flagstaff hotel downtown?
O’Connell:
Flagstaff is an incredibly unique market. It combines the energy of a university community with a vibrant historic downtown, year-round tourism, outdoor recreation, and a strong sense of local identity. Those characteristics make it an ideal fit for the Graduate by Hilton brand. Graduate hotels are designed to embrace the communities and universities they serve, incorporating elements of the area’s history, culture, traditions, and character into the guest experience.
An important part of bringing that vision to life is our longtime design partner, Dwellings. Their team has spent time in Flagstaff, visited and engaged with the university, and worked to understand what makes this community distinctive. Those experiences are being thoughtfully incorporated into the design so the hotel feels authentic to its surroundings.
FBN: How will the Graduate by Hilton engage with the Northern Arizona University community?
O’Connell:
The relationship with NAU will be an essential part of the hotel's identity. Graduate properties are intentionally designed around their university communities, incorporating local history, traditions, artwork, and school culture throughout the guest experience. We anticipate developing relationships with NAU throughout the year through various programs:
- University and alumni events
- Campus visits
- Recruitment activities
- Athletics
- Graduation
- Student and graduate employment opportunities
- Other programming
Our goal is for students, faculty, alumni, families, and local residents to feel that this is their Graduate—a place to gather, celebrate, dine, and return to throughout the year.
FBN: Do you have a rough estimate of how long it will take to build the five-story hotel and four-and-a-half level garage?
O’Connell:
The project is actively moving forward, with construction of the parking garage expected to start at the end of September. We are targeting Spring 2027 to begin construction of the Graduate by Hilton Flagstaff hotel, with the goal of completing the project in the first quarter of 2029.
As with any development of this scale, construction schedules can be influenced by permitting, weather, material availability, and other variables. However, this is the timeline we are currently working toward.
FBN: The Flagstaff market has about 5,500 hotel rooms. Do you expect there is enough demand to sustain your Graduate hotel in Flagstaff?
O’Connell:
Yes. We believe there is strong demand for the right hotel product in Flagstaff. Market-wide statistics are important, but they represent only part of the picture. Our focus is on providing a unique guest experience that resonates with both visitors and local residents.