For Denū Hotel and Spa in downtown Phoenix, the road to groundbreaking wasn’t a linear path. Now, the 17-story structure is well on its way to housing a four-star independent luxury hotel that will bring 236 much-needed rooms to downtown Phoenix. But for Mortenson and partners Pacific Hospitality Group, Berger Holdings, and JWG Investments, getting to this point has taken a lot of creative solutions, 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. – based on a strong development portfolio – was tapped to join the project. MDI had just wrapped up the award-winning Hyatt Place Downtown Phoenix and were able to draw on their recent experience and industry partnerships. That included bringing PHG on board to help move the project forward.
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 key part of this process was ensuring the hotel’s profitability. Because the hotel’s main source of revenue will come from guest rooms, maximizing the number of beds was critical. MDI led the project team in developing several cost models. Through this process, the team hit on a creative solution: increasing the height of the building by one story to make more room for guests. The project team was able to confidently move forward, knowing that the addition of the 17th floor would boost revenue potential and ultimately enable the project to meet the pro forma.
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 footprint of the Denū is taken up 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 just-in-time delivery strategy—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 just feet away, 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 finished, Denū will provide much-needed lodging to the downtown Phoenix area and help support events at downtown attractions like the Phoenix Convention Center and Phoenix Arena. As a full-service four-star hotel, Denū will include a full spa, 22,500 square feet of meeting and banquet space, a ground-level restaurant, and a rooftop bar, pool, and lounge. Substantial completion is expected in late summer 2026, just in time for peak travel and tourism season in the Valley.