Ground will be broken Aug. 27 on another downtown hotel.
A 76-room Hampton Inn and a 123-room Home2 Suites will be built in a six-story structure on South Stone Avenue between Ochoa and Corral streets, across the street from St. Augustine Cathedral.
Home2 Suites is a Hilton extended-stay brand, said Greg Fay, managing parter with Fayth Hospitality Group.
The Rio Nuevo board agreed to waive a portion of the future generated sales tax from the hotels’ development, capped at $7.5 million, to jump-start the project.
Fayth hopes to be open for guests in early 2021.
Earlier this year, construction began on the Tucson Convention Center hotel.
A 170-room DoubleTree by Hilton is going up on the south parking lot of the TCC, near Cushing Street. It will feature an entrance from the street as well as from the Convention Center.
Other hotel activity downtown includes the possible redevelopment of Hotel Arizona, 181 W. Broadway, which has been closed since 2012. Developers want to reopen it as a 296-room Hyatt Regency. An economic analysis by the city is underway to see if the project qualifies for tax incentives.
On the outskirts of downtown, several older hotels are being renovated along Interstate 10.