Phoenix Hotel Demolition Clears Way for Atari
Contractors eyeing downtown Phoenix work should note a $125 million hotel project with construction expected to start in early 2027.
Updated on Nov. 6, 2026 in Construction
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Developers have begun demolishing the historic KOY radio studio building at 840 N. Central Ave. in downtown Phoenix to make way for the planned $125 million Atari Hotel. Construction-sector operators should note the site is being cleared ahead of a project that has been delayed since its 2020 announcement.
Why it matters
The demolition clears a 1.6-acre downtown parcel for a large mixed-use hotel project that has already slipped years because of pandemic-related setbacks. For contractors and suppliers, the project signals a multi-year pipeline in downtown Phoenix, but its financing depends partly on a public investment campaign that has not disclosed how much it has raised.
The $125 million project sits on a 1.6-acre parcel purchased for $1.6 million in 2023. Intersection Development's investment campaign targets $35 million to $40 million, but the company has not reported how much it has raised.
The players
Intersection Development
A Phoenix-area real estate developer that acquired the KOY site and is leading the Atari Hotel project.
Audacy
A radio broadcasting company that owned the KOY property before selling it in December 2023.
The details
Intersection Development is pursuing a Regulation A Tier 2 equity offering that lets individual investors buy stakes in the Atari Hotel, a funding route it turned to after pandemic-related delays forced a redesign and a search for investment capital. Demolition of the two-story building began Nov. 4, and more than a third of the structure was down by Thursday afternoon. Construction is expected to start in early 2027 once clearing is complete, with the developer aiming to open the hotel in late 2028 or early 2029.
Timeline
2020: The Atari Hotel project was first announced.
2023: Intersection Development acquired the KOY site for $1.6 million.
December 2023: Audacy sold the property to Main & Main RoRo LLC, an affiliate of Intersection Development.
2025: Intersection Development launched its public investment campaign.
Nov. 4, 2026: Demolition of the KOY building began.
Market Landscape
The Atari Hotel is being financed in part through a Regulation A Tier 2 offering, a route that lets individual investors buy in alongside the developer. The project's multi-year timeline from 2020 announcement to a 2028-2029 opening reflects how pandemic disruptions have stretched downtown Phoenix development schedules.
Contractors and subcontractors bidding on downtown Phoenix work should watch for the Atari Hotel's construction start in early 2027 as a potential opportunity for demolition, site work, and vertical trades. Operators reliant on the project's financing should track whether the public investment campaign reports progress toward its $35 million to $40 million target.
The takeaway
The key operating insight is that this project's financing and timeline still depend on the investment campaign, which has not disclosed results. Construction firms should track the developer's fundraising disclosures and the early 2027 construction start date before committing capacity.
What happens next
Construction is expected to begin in early 2027 once demolition of the KOY building is completed.
Further reading
For more on how downtown projects like this move from site acquisition to groundbreaking, see the Construction section.
Source note: This article includes information reported by Phoenix New Times.
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