- R.D. Olson, an Irvine-based hotel builder with nearly 50 years in business, gets 80% of its work from repeat clients and has diversified into multifamily, affordable housing and assisted living.
- President Bill Wilhelm says pricing is stable for now and expects a backlog of stalled projects to take off by the third quarter of 2027, which would strain materials and skilled labor.
- His playbook for a slowdown is to procure materials in the first 90 to 120 days, vet clients’ financing early and push partners for fast decisions before costs rise.
Irvine, California-based builder R.D. Olson is telling developers to start hotel construction now, CoStar News reports, before a backlog of delayed projects tightens materials and labor.
President Bill Wilhelm told CoStar News that 80% of the firm’s work is repeat business.
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Following the Client
Wilhelm told CoStar News the firm follows its clients wherever they build, rather than working secondary markets on its own. The average employee has been there 14 years, which he calls the core asset.
He also screens clients. Those who hesitate when asked who is providing the financing are a warning sign, he told the outlet.
Beyond Hotels
Hospitality is the bread and butter. Recent finishes include Appellation Healdsburg (September 2025) and Burton House in Beverly Hills (May 2024). Under construction: the Senoa Resort and Spa, 70 keys in Sedona, Ariz., targeting late 2028.
Wilhelm branched into multifamily, affordable and assisted-living work, a move that cushioned the firm once hotel starts dried up. Last year it still had five ground-up hotels underway, which he called unheard of for the industry.
Build Before the Backlog
Pricing is stable for now, Wilhelm told CoStar News, but he expects stalled projects to start moving by the third quarter of 2027. When they do, he said, getting product will be tough and skilled labor scarce.
His fix is early buying. He buys materials within roughly the first three to four months of a job, and he’ll pay warehouse rent to avoid being short later.
Why It Matters
It is one builder’s read, but the cost data points the same way. JLL’s forecast, covered by CRE Daily, has construction costs rising 3.1% to 4.2% in 2027, with 3% to 6% a year as the new planning baseline.
The supply side is thin too. Marcus & Millichap found apartment units under construction down 50% from the 2023 peak, a construction pipeline that could stretch the rent growth cycle.
What’s Next
Wilhelm also sees developers leaning into place, from culinary-driven design in wine country to old Hollywood cues in Beverly Hills. If his timeline is right, projects planned now will beat the crowd.
