Capri Inc. Will Develop New Flagstaff Hotel
A $55 million project will replace the former City Hall building with 143 guest rooms by early 2029.
Updated on Oct. 11, 2026 in Hospitality
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Capri Inc. plans to develop a new 143-room hotel at the corner of Beaver Street and Birch Avenue in Flagstaff. The $55 million project is slated for completion in the first quarter of 2029.
Why it matters
The developer aims to capitalize on Flagstaff's combination of outdoor recreation, tourism, and the local university community. The new facility will replace the city's former City Hall building, which was constructed in 1951.
The project represents a $55 million investment to add 143 guest rooms to the existing 5,500-room market capacity. The site will also feature a 3,500 square foot restaurant and generate employment for 70 to 90 team members.
The players
Capri Inc.
This Tucson-based development company currently manages a portfolio of six hotels.
Wespac Construction
This firm is acting as the general contractor for the Flagstaff development project.
Dale Johnson
He is the project architect representing JRA Architect for this new downtown hotel.
The details
The development will feature a five-story hotel structure alongside a four-and-a-half level parking garage at the downtown site. Wespac Construction serves as the general contractor, with architectural designs led by Dale Johnson of JRA Architect.
Timeline
Construction of the parking garage is expected to start at the end of September 2026.
Hotel construction is targeted to begin in Spring 2027.
The development is scheduled for completion in the first quarter of 2029.
Market Landscape
This development aligns with the trend of expanding lodging capacity in university-adjacent hubs to accommodate tourism and collegiate demand. It positions the developer to capture market share from the city's 5,500 existing rooms.
Local residents will see the transformation of the former City Hall site into a new hospitality destination. The project is expected to create 70 to 90 jobs in the community once the hotel becomes operational.
The takeaway
This project highlights the continued expansion of downtown hotel inventory in mid-sized destination cities. Residents and business owners can expect increased traffic near the Beaver and Birch intersection as construction milestones progress toward 2029.
What happens next
Construction of the parking garage is expected to commence at the end of September 2026, followed by hotel construction in Spring 2027.
Further reading
For more on the local hotel sector, visit Flagstaff Hospitality.
Source note: This article includes information reported by Flagstaff Business & Online News | Northern Arizona Local Newspaper.
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