Permitting Process Underway for Construction of New Downtown Tucson Hotel

Hotel Room Door courtesy of

Plans are advancing for the building of a new hotel in downtown Tucson that will include what is being described as an “event alley.”

The long-planned project, officially called the Tucson Inn and Marketplace, has taken a significant step forward with a vote by the board of the Rio Nuevo tax increment finance district approving use of the land designated for the development.

That currently vacant land, at 75 East Broadway Boulevard, will be leased to the developer, the Eugene-Oregon-based Obie Companies, for some $200,000 a year.

It is not yet known when work on the project will begin, but with the approval of the Rio Nuevo group, the developer is expected to soon begin the permitting process.

The hotel, to be built directly across the street from the corporate offices of Tucson Electric Power, will include around 250 rooms. As planned, the open-air event alley, to be built adjacent to the hotel, will feature a variety of different-sized retail spaces, restaurants, bars, and a bandstand.

The property was formerly the site of the three-story Roskruge Hotel, which was demolished in 1984.

The Obie Companies specializes in retail, multi-family, and hospitality projects, and has been particularly active on the West coast.

January 27, 2026

By Garry Boulard

Photo courtesy of Pixabay

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