by Darrian Peck | Jul 22, 2026 | Construction
Somewhere in the middle of a construction draw schedule sits a line item most sponsors barely glance at during underwriting: the interest reserve. It rarely gets debated the way hard costs or contingency do. Then, twelve months into a build, it becomes the reason your...
by Darrian Peck | Jul 20, 2026 | Construction
Every hotel developer models revenue growth, exit cap rates, and debt service coverage with precision. Far fewer model the depreciation schedule with the same rigor, even though it directly shapes after-tax cash flow in the years that matter most to IRR. Cost...
by Darrian Peck | Jul 17, 2026 | Construction
Five Percent Is a Guess, Not a Plan Ask a developer how they arrived at their construction contingency budget and the honest answer is often a shrug. Five percent is the industry default because it is easy to write into a pro forma, not because it reflects the actual...
by Darrian Peck | Jul 15, 2026 | Construction
The Contract Type Is a Risk Decision, Not a Paperwork Detail Before a hotel developer signs anything, the contract structure has already made a decision about who absorbs risk when conditions change. Steel prices move. Labor availability tightens. A subcontractor...
by Darrian Peck | Jun 1, 2026 | Blog, Construction
Expanding your hotel portfolio into a new state? Rethink what “local GC” actually gets you. Expanding into a new state feels like opening a door to fresh revenue streams. But the choice of who builds your next hotel can make or break your financial...
