Intersection Development has begun clearing a downtown Phoenix site to make way for the Atari Hotel, a gaming-focused hospitality project planned with 91 guest rooms and a large-scale entertainment component. Demolition is underway on a former radio station property, which is being removed to prepare the site for the new concept hotel.
The Atari-branded project is planned to feature a 60,000-square-foot immersive entertainment and video game experience, positioning the hotel as both lodging and a destination for gaming-focused visitors. Plans also call for a dedicated e-sports and concert venue designed to accommodate 2,000 people, as well as a sportsbook component, bringing multiple entertainment formats together under one roof.
The hotel is planned for a busy section of downtown Phoenix at 840 N. Central Avenue, aligning the concept with the city’s urban core and surrounding activity. The site currently consists of a former radio station building that is being torn down to create room for the new development, reflecting a shift from legacy media use to experience-driven hospitality.
Intersection Development is continuing to seek investors to capitalize the Atari Hotel, with the project’s development cost estimated at $124 million. The firm is working under a licensing agreement with Atari that sets specific timing requirements for the start of construction, linking the project’s branding rights to defined development milestones.
Under that agreement, Intersection must break ground and begin construction on or before June 30 of this year to remain in compliance with the current schedule. The contract includes an option to extend the groundbreaking deadline to December 31 if the developer pays a $50,000 extension fee, providing some flexibility while still imposing a clear capital and timing constraint on the project.
The planned hotel builds on Intersection Development’s recent experience with gaming-themed real estate in downtown Phoenix. The company recently delivered Rainbow Road, a 36-unit apartment property inspired by the Mario Kart franchise, located at 1030 N. 1st Street. That project introduced a gaming motif to a residential asset, while the Atari Hotel is set to apply a similar entertainment-focused brand strategy to the hospitality sector.
As demolition progresses, the Atari Hotel remains in the pre-construction phase, with capital raising, branding commitments, and entitlement execution all converging ahead of the required groundbreaking deadline. The combination of a defined development cost, a high-profile entertainment brand, and a downtown Phoenix location positions the project at the intersection of hospitality, experiential entertainment, and themed real estate.
