Pushed through a full PIP on a 48-key limited service and came out the other side with numbers I can actually underwrite

Took 14 months from closing to ribbon cut, which ran about six weeks past the franchise-mandated deadline. Paid a $38,000 penalty fee for that overage, which I had not modeled. The contractor we used had done two prior PIPs in the same flag family, so the scope surprises were minimal, but permitting in that county added the time. Total PIP spend landed at $2.1M against a $1.85M budget, most of the gap in the corridor package and the PTAC replacements running higher than the bid. Post-renovation ADR moved from $89 to $114 in the first full quarter, which put RevPAR at $79 against a $72 stabilized projection. GOP margin is sitting at 38%, up from 31% at acquisition. Still running the operator from the prior owner for now, 18 months left on that contract before I have to make a decision. The penalty stings when I write it out but the asset is performing ahead of proforma on the top line so I am not going to pretend the outcome was bad.