A proposal to build a new extended-stay Hyatt Studios hotel near the entrance to the Taiwan Semiconductor Manufacturing Co. campus in northern Phoenix has cleared a potential zoning hurdle and appears to be in the final steps toward receiving approval.

Scottsdale-based CaliberCos Inc. plans to build the 114-room hotel on the corner of Sonoran Desert Drive and 29th Avenue, just east of the intersection of Interstate 17 and Loop 303.

On Wednesday, a Phoenix Planning and Development hearing officer agreed to remove a prior stipulation for the parcel under consideration. The stipulation limited development on the land to just one story in height, according to city records.

Plans for the hotel feature four stories built on 2.3 acres of land owned by Terrance Plas of Sonoran Desert Retail LLC.

The LLC purchased the nearly 5-acre parcel in 2023 for $3.6M, according to a Phoenix Business Journal report.

Terrance Plas Vice President of Development Mike Garcia said the project likely will go before another city official for approval sometime in the next month. The height restriction waiver represented an important milestone for the project.

“We should be pretty good now,” Garcia said.

The hotel would be minutes away from the nearby TSMC campus, a sprawling site that will manufacture advanced semiconductors. TSMC has been expanding across Arizona’s deserts and turning northern Phoenix into a global hub for artificial intelligence chip manufacturing.

The remaining land is being marketed for retail development, a gas station and a convenience store.

CaliberCos Inc.’s subsidiary, Caliber Hospitality Development, struck a deal with Hyatt in 2025 to build 15 new hotels across five states. The proposed extended-stay hotel is currently in line to be the first.

Hyatt unveiled its Hyatt Studios brand in 2023, and several are currently being built nationwide. These hotels are Hyatt’s first foray into upper-midscale extended-stay hospitality, according to PBJ.

Each Hyatt Studios hotel will include apartment-style suites complete with in-room kitchens, free internet access, electric vehicle charging stations, complimentary breakfast, a 24/7 market, self-service laundry machines, a fitness center and pet-friendly accommodations.

Another Hyatt Studios is being built in Scottsdale.

In Q4 2025, Phoenix ranked first for projects actively under construction, with 35 hotels and 4,829 rooms being built, according to a Construction Dive report citing statistics from Lodging Econometrics. It also had the third-most robust hotel construction pipeline in the U.S. during the quarter, with 124 projects and 16,303 rooms planned, ranking behind only Dallas and Atlanta.

This year, Phoenix will welcome 23 new hotels with 3,326 total rooms, according to data from CoStar.