A Guide for Hotels: Boosting Profits with Energy Efficiency & Conservation

Planning an Energy Program: Certification Programs

Energy efficiency and conservation are major components of any green building program. Certification programs and green building guidelines are based on the collective experience of industry professionals - architects, designers, developers, academics, product manufacturers, utility representatives, facility managers and government regulators. Most programs have been formally vetted and tested in real-world conditions. Even if you do not intend to seek certification, these programs lay out sound guidance and tips on whole-building design that may be useful. Hotels that do achieve certification often enjoy media and public accolades for their efforts.

Hotels participating in ENERGY STAR make a commitment to allocate staff and funding to achieve continuous improvement. This includes appointing an energy director, establishing an energy team and instituting an energy policy. Gathering and tracking data is an important next step and includes the documenting of all energy uses. ENERGY STAR hotels establish a baseline for improvement and the metrics used to measure that improvement.

There are currently 247 ENERGY STAR labeled hotels listed on the U.S. Environmental Protection Agency's ENERGY STAR for Hospitality website. Almost 3,000 U.S. hotels have participated in this free government program since it was launched in 2002. Most participating hotels are in the 200-room range, but any property 20-rooms and up can benefit.

EPA provides a national energy performance rating system for hotels. The rating system allows participants to compare their hotel's performance against similar facilities. By uploading energy and building information to the EPA website, hotels can determine their benchmark score on a scale of one to 100. Buildings that rank in the top quartile of participating buildings based on energy efficiency are eligible for the ENERGY STAR label. Even though thousands of hotels have participated in the ENERGY STAR for Hospitality program, most have not applied for the ENERGY STAR label. Brodsky says, however, that he is seeing organizations apply now more than ever before.

The Leadership in Energy and Environmental Design (LEED) Green Building Certification by the U.S. Green Building Council encourages global adoption of green building practices through the implementation of universally recognized criteria, including energy efficiency in buildings. The LEED Certification for Existing Buildings helps building owners and operators measure operations, improvements and maintenance and addresses whole-building cleaning and maintenance issues, recycling programs, exterior maintenance programs and systems upgrades. Click here to learn more.

A report issued in 2003 commissioned by more than 40 California state agencies and the USGBC looked at buildings constructed in the 1990s. This report has been further updated by the USGBC, which reports that as of 2007 the premium cost for LEED-certified projects, if any, is only 1% to 2%, and declining as people gain more experience. Any premium in costs is usually recovered through rebates, incentives and long-term cost savings, which have often provided a hard economic "payback" in 12 to 24 months.

LEED-certified buildings, typically save:

• 30% to 50% in energy usage
• 35% in carbon emissions
• 40% in water emissions
• 70% in solid waste

According to the USGBC, with a 30% to 50% energy savings a limited service hotel would achieve savings equivalent to increasing average daily rate (ADR) by $1.80 to $3.00, and a full service hotel would have the equivalent benefit of increasing ADR by $4.00 to $6.75.

W Hotel and Residences in West Hollywood

Marty Collins, CEO of Gatehouse Capital and the owner of W hotels in the United States decided to go for LEED certification for his current development, the W Hotel and Residences in West Hollywood. Collins considers the cost of meeting LEED certification standards "negligible" (less than 1% of his project, if that). The hotel will offer hotel guests, workers and residential owners a healthier environment for living and working - with significantly lower costs for energy, water and waste.

“1" Hotel and Residences

In October of 2006, Barry Sternlicht of Starwood Capital launched "1" Hotel and Residences, emphasizing that it will be the first luxury, eco-friendly global hotel brand. The concept promises to combine green construction and operating principles with exceptional service and luxurious comfort. "1" will show that green principles can actually enhance a luxury hotel experience.