Sustainability in the hotel industry is progressing at varying paces. While some hotel owners are still lagging behind—failing to install basic energy-efficient solutions like LED lights—others are fully embracing comprehensive sustainability programs such as B Corp and BREEAM certifications.
According to Gregor MacNaughton, Chief Technical Officer at RBH Hospitality Management, the approach to ESG (Environmental, Social, and Governance) investments differs significantly among hotel owners. However, the recent surge in construction costs has led to a renewed focus on refurbishing and extending existing properties. “This is the first year at RBH in my memory that we have no new builds in progress,” MacNaughton notes.
Energy-Saving Measures
Many hotel owners are now investing in energy-saving technologies, such as voltage optimization and in-room occupancy sensors. Major global hotel brands have also adopted sustainable practices at different rates. In 2021, IHG was the first to set median monthly and annual energy targets for operators, followed by Hilton. Meanwhile, Accor and Marriott have yet to implement similar policies.
MacNaughton explains, “We took the best bits of the IHG and Hilton targeting systems and extrapolated that across all our hotels. Now, we provide all our hotels with monthly and annual energy targets and incentivize our general managers to meet those goals. It has become part of our ethos and culture.”
Navigating the Sustainability Landscape
The lack of industry-wide mandates can make the path to sustainability complicated. Independent hoteliers face numerous decisions regarding the best technologies and data sources to utilize. Ben Harper, CEO of Watergate Bay, Another Place & Beach Retreats, emphasizes, “We’re hotel people, not environmental scientists. It’s a minefield out there.”
For Harper, adopting the B Corp certification program has streamlined the process. “B Corp has been really helpful for us because it forces the issue, making it less of a decision and more of a mandate.” However, debates continue about whether it’s more environmentally friendly to renovate an old building or demolish it for new construction.
Future-Proofing New Builds
When new builds do occur, they must be designed for longevity. Steve Walford, Vice President at Cedar Capital Partners, stresses the importance of avoiding past mistakes, such as using RAAC concrete. New buildings should feature easy-to-remove facades and minimal structural columns to facilitate future conversions into offices, hotel rooms, or residential spaces. “Why knock it down? We should not still be having this conversation in 50 years,” Walford argues. “There’s a huge cost to demolition and new construction. We need to build the right buildings for the future now.”
Energy Efficiency in Operations
For existing hotels, there are various straightforward energy efficiency measures that can yield significant savings. These include:
- Voltage Optimization: Installing a transformer at the electricity entry point can lead to annual savings of 6 to 8 percent. MacNaughton reports, “We’ve installed it in about 15 hotels, with another 10 in the pipeline. It costs between £10,000 and £20,000 per site, with a two-year payback—it’s a no-brainer.”
- Building Management Systems: Cedar Capital Partners collaborates with EP&T Global, a provider of data-driven building management services. By installing sub-meters throughout hotels, they can benchmark energy usage and identify wastage. Walford states, “EP&T guarantees savings that cover the cost of installing sub-metering, making it a win-win. You end up with a more efficient hotel and increased profitability.”
Enhancing Guest Experience
Energy-saving measures can also enhance the guest experience. For example, elevator destination control improves lift efficiency, reducing wait times and unnecessary stops. Additionally, the return on investment from installing EV charging bays is significant. “We’re putting around 40 in at The Belfry [golfing hotel and resort in England],” Walford explains. “Guests can enjoy a game of golf while their car charges, making efficient use of their time. We’ve made money, and guests leave satisfied.”
Independent hoteliers have a wealth of opportunities to cut operational costs while promoting sustainability. By investing in energy-efficient technologies, optimizing existing properties, and making informed decisions about new builds, they can create a more sustainable and profitable business model. The journey toward sustainability may be complex, but the rewards—both financial and environmental—are well worth the effort.
