Denū Hotel and Spa

For Denū Hotel and Spa in downtown Phoenix, the road to groundbreaking wasn’t a linear path. Now, the 17-story tower stands proudly in the downtown skyline, signaling the arrival of a four-star boutique hotel that will deliver 236 much-needed rooms to the market. For Mortenson and partners Pacific Hospitality Group (PHG), Berger Holdings, and JWG Investments, bringing this vision to life demanded creative solutions, deep expertise, and ingenuity.

The project’s origins trace back to 2018, when the City of Phoenix released an RFP for the development of a city-owned lot next to Hanny’s and the Renaissance Hotel. Progress stalled, however, as the Covid pandemic and broader economic downturn put the development on hold.

In 2022, Mortenson Development, Inc. (MDI) was tapped to join the project, bringing a strong development portfolio, recent experience and industry partnerships from the award-winning Hyatt Place Downtown Phoenix. MDI brought PHG on board to help advance the project.

With a strong project team assembled, making Denū a feasible project was the next challenge. The MDI-led team collaborated closely, each contributing their expertise in cost management, market analysis, and operations to develop a plan that could secure financing.

A central focus of the project was ensuring the hotel’s long-term profitability. With guest rooms serving as the primary revenue engine, maximizing capacity was critical. Through a series of cost models led by MDI, the team identified a pivotal solution: increasing the building height by one story to expand capacity. The addition of the 17th floor not only boosted revenue potential but also positioned the project to successfully meet its pro forma goals.

Mortenson broke ground in September 2024, and has relied on the same creativity, expertise, and ingenuity to navigate the construction phase. Because nearly the entire site footprint is occupied by the building itself, the Mortenson-led construction teams have very limited space for staging, parking, or material storage. To address this, the team has implemented a just-in-time delivery strategy, where materials arrive exactly when needed and are installed right away. This approach demands daily coordination and precise scheduling, making sure every delivery, trade, and activity is perfectly sequenced to keep the project moving smoothly.

Additionally, with the Renaissance Hotel across the street, Hanny’s on the project site, and other buildings nearby, Mortenson has prioritized transparent and consistent communication, providing weekly updates to neighboring businesses and coordinating closely to minimize disruptions.

Once complete, Denū Hotel and Spa will bring a new kind of hospitality experience to downtown Phoenix, supporting continued growth around destinations like the Phoenix Convention Center and Phoenix Arena. Designed as a lifestyle-driven, four-star hotel, Denū will feature thoughtfully designed guest rooms, a Turkish-inspired hammam spa concept, and more than 22,500 square feet of flexible meeting and event space. Elevated dining and social experiences—including a signature restaurant and a rooftop pool and lounge on the 17th floor—will further establish Denū as a distinctive addition to the city’s evolving skyline. The hotel is set to open in September 2026, aligning with peak travel season in the Valley.