Hotels Energy & Sustainability Services

The hospitality sector is one of the most energy-intensive industries, and rising energy costs as well as environmental stewardship are prompting owners, operators, and larger corporations to actively seek energy and water reductions in their path to decarbonize. 

In fact, energy represents the single fastest-growing operating cost in the lodging industry. There is a well-established case for energy efficiency as a sound business practice, and expectations for hoteliers to demonstrate their climate stewardship are growing.

Hotels use more energy per square meter than any other buildings and Improved operating income translates to higher asset value for owners. Cost reductions through energy efficiency are quantifiable and can be described using key financial metrics, such as revenue per available room (RevPAR) or the equivalent increase to the Average Daily Rate (ADR).

In the hotel sector, reducing energy costs while continuing to meet the diverse needs of guests, owners, and corporate requirements is challenging but achievable. Energy efficiency provides hotel owners and operators with cost savings that benefit the bottom line while it improves the service of capital equipment, enhances guest comfort, and demonstrates a commitment to climate stewardship. Environmental friendliness can be a market strength for a hotel brand, which can lead to a better reputation among consumers.

It is documented that every 10% reduction in energy consumption has the same financial effect as increasing your average daily room rate (ADR) by $0.62 to $1.35.

Companies in the lodging industry have realized that environmentally sound practices not only help the environment but can also lead to cost reductions, business expansion, and profit growth.