Energy Efficiency for Hotels Can Deliver Higher Profits and More

Hotels provide a diverse range of services, many of which are energy-intensive. With energy costs rocketing, there has never been a more apt time for the hospitality industry to consider energy efficiency for hotels. 

While it is essential to consider the ecological impact of constructing hotels, research has found that over a 50-year cycle, only 10% of a hotel’s energy consumption is swallowed by the construction phase. Therefore, when constructing or remodeling hotels we should make energy efficiency during the operation phase a priority concern.

However, cost savings is not the only reason to consider energy efficiency in hotels.

The world needs to reduce energy consumption

When considering environmental impact, the tourism sector is third only to industry and agriculture. It still relies on fossil fuels to generate much of the energy it uses. Hotels rank in the top five energy consumers in the tertiary sector, behind food services, sales, healthcare, and offices.

The sector’s contribution to climate change is significant. Each hotel room accounts for an estimated average of around 180kg of CO2 per square meter of floor area. Though the carbon footprint of a hotel stay has been falling in recent years, more needs to be done if we are to stem the tide of climate change.

Hotel chains need to reduce costs

While providing a service, a hotel is a business. It exists to make money. Therefore, ensuring that costs are restrained is crucial. Reducing costs will aid competitive advantage. Indeed, a hotel’s energy spent per room is more than $2,100 per year – or around 6% of its total operating costs.

A 10% reduction in energy costs will provide an equivalent uplift in the daily room rate of around $1.35 for a full-service hotel.

Investing in energy-saving upgrades, and prioritizing energy efficiency in hotel construction not only reduces a hotel’s carbon footprint but also reduces operating costs and improves profitability.

Energy efficiency improves competitiveness

The tourism industry is forecast to be one of the fastest-growing industries in the world over the next decade. Within this, the ecotourism sector is predicted to be the best performer, growing at an incredible rate of more than 14% CAGR through to 2027 and beyond.

The desire to live a greener and cleaner life is shaping the way we travel and the accommodation we stay in. Delivering more energy-efficient and sustainable hotels will help hospitality brands to stay ahead of this curve and their competition.

Hotels can improve self-sufficiency

Hotels rely on outside partners. A hotel cannot service its guests without providing food, water, and energy. By designing and constructing a hotel to be more environmentally friendly, it is possible to improve self-sufficiency, reducing both costs and reliance on external partners over who the hospitality company may have little to no control.

Intelligent design for sustainable hotels – from siting to sustainable energy sources, landscaping, and water use – can achieve greater self-sufficiency, improve ecological credentials, reduce costs, and provide freshly harvested food from a hotel’s gardens (even in the city center hotels).

Are you seeking to deliver a competitive, low-carbon footprint, and attractive experience to your guests? Whether you are constructing a new hotel or remodeling your existing stock, contact ACB Consulting. We deliver results because we care about our community, our clients, and the world.

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