Article originally posted in the AZ Central on Nov. 12, 2026.

HonorHealth, Scottsdale’s largest employer, wants to build a large luxury hotel and apartment complex alongside its medical campus near Old Town.

Conceptual site plans it recently submitted to the city call for the redevelopment of a portion of its property at Second Street and Drinkwater Boulevard, where it can make space for two nine-story buildings with about 460 hotel rooms and residential units.

As one of the most prominent health care systems in the Valley, HonorHealth believes the development will represent a “significant component” of its long-term vision for its Osborn Medical Campus.

The proposal is going through the city’s design review process — an early stage of development. In its application to the city, HonorHealth noted that the project fits within the site’s approved zoning and isn’t requesting any adjustments to existing restrictions.

It comes, though, at an already fragile time for multi-family housing development in the city.

Scottsdale’s conservative leadership and political candidates have vehemently opposed new apartments, painting the recent influx of high-density growth as the root of the city’s problems and a threat to its character and water security.

Social media chatter on the proposal has been a mixed bag, with many praising the concept as a much-needed investment in downtown Scottsdale while others were dismayed by the height and density.

The affluent East Valley city of roughly 246,000 residents is a well-known tourist destination, popular for nightlife, dining, shopping, resorts and recreation.

It’s also a self-sustaining community, as most of its residents work within city limits or have relatively short commutes to neighboring towns.

Many of those jobs are centered around health care.

For years, HonorHealth has contributed to Scottsdale’s reputation as a major employment center for medical roles. With medical offices and complexes throughout the city, it had nearly 7,500 workers as of fiscal year 2025.

Its 45-acre Osborn Medical Campus in Old Town is located between Second Street and just south of Osborn Road, and between Scottsdale Road and Drinkwater Boulevard, just across from Scottsdale Stadium, Civic Center Plaza and Scottsdale Center for the Performing Arts.

To continue attracting and retaining medical staff at the large complex, HonorHealth plans to redevelop a 4-acre swath of its property and construct a pair of nine-story buildings. One will house 223 luxury hotel rooms and the other will have 238 apartments.

If built, the project’s mix of hospitality and residential uses “will enhance the campus environment,” HonorHealth said. It’ll also “strengthen its connection to the surrounding community, and contribute to the (campus’s) long-term success, vitality and viability.”

HonorHealth boasted that the project will also “become an integral component in the continued revitalization of the area.”

Fencing already encloses the site of the proposed redevelopment project, where shuttered buildings and a vacant parking lot currently sit.

If HonorHealth’s plan gets the green light, it’ll contribute to the growing roster of multi-family developments around the city.

While Scottsdale’s northern region mostly comprises owner-occupied homes, rentals heavily dot much of its southern neighborhoods, census data shows.