Mr. Nysse

Architecture & Design

Greening Historic Hotels: An Authentic Differentiator

By Douglas Nysse, Principal, Kahler Slater

Co-authored by David Plank, Associate Principal, Kahler Slater

From the popular press to trade journals, everyone is talking about green. And most of us are trying to do something about it, both because it’s the right thing to do and because our clients and your customers are telling us that it is important to them. A report from the World Business Council for Sustainable Development documents that consumers are increasingly concerned about environmental issues and increasingly willing to act on those concerns. However, that consumer willingness is running into barriers such as availability, affordability, convenience and habit. The trick is to find ways to make it easy for customers to have their desires met while improving your bottom line. Fortunately for the owners of historic hotels, the greenest hotel is the one that’s already built.

The resurrection of many of our nation’s historic hotels has become a noticeable movement over the past several years. In our work with Historic Hotels of America, we know that historic hotels capture travelers’ desire for authentic experiences. Historic hotels have traditionally been the social centers of cities. With decades of significant events held within their walls, whether they are high school proms, wedding receptions or political rallies, these hotels embody the shared history of their cities. In a culture striving to regain a sense of community, these properties serve as important touchstones. In addition, the richness of design and use of materials in these buildings adds a texture to the fabric of the city and a type of experience that is hard to replicate.

So, how do “green” and “historic” come together? At first glance, it seems that the two should be mutually exclusive. If you want a green building, common thought holds that it needs to be new and built with the latest materials and systems. And if you have a historic building, it may be beautiful, but it is doomed to be inefficient, right? In reality, the two can be brought together. As evidence of the synergies between sustainable design and historic buildings, the United States Green Building Council (USGBC), the leading organization for promoting sustainable design, and the National Trust for Historic Preservation, the leading building preservation organization, have been working together for the past two years to seek common ground and find ways to support each other’s missions. As one step in this initiative, the National Trust has founded The Preservation Green Lab in Seattle to develop strategic policies for integrating the reuse and retrofitting of historic buildings into city and state efforts to achieve sustainability objectives. Renovation is by nature a sustainable activity. There is a much embodied energy in materials and construction already in place that doesn’t need to be recreated. And, of course, a building that is not demolished to make way for something new is a building that does not end up in a landfill. The fact that so many of our historic buildings are in urban locations is another significant sustainable feature. These buildings make use of an existing and dense infrastructure of streets and utilities and are generally near public transportation. These may not be attention-grabbing features, but they are certainly part of the big picture of sustainable design and should be promoted as such.

A significant financial impetus for the renovation of historic hotels is the federal historic preservation tax credit program, along with a variety of parallel state tax credits. These incentives can make the building owner’s pro forma viable to renovate a historic property. The federal incentive provides a 20% tax credit on qualified rehabilitation expenses. More than half of the states offer historic preservation tax credit programs, ranging from 5-50% of qualified rehabilitation expenses. Showing the effectiveness of these programs, several states are considering legislation to create tax incentives for historic preservation or to expand existing programs.

The most recognized certification of sustainable buildings is USGBC’s LEED rating system. The rating system was revamped in 2009, with the latest version being LEED v3 (sometimes referred to as LEED 2009). One of the major revisions was to change the point scale to a weighted system based on life cycle assessment indicators; in other words giving more points to those credits that have a sustained environmental benefit over time. Historic hotels benefit from additional points being awarded for building reuse and historic, urban properties benefit from several additional points awarded for density and access to public transportation. LEED itself is broken into multiple rating systems, depending on the nature of the project. LEED for New Construction (LEED-NC) is the rating system applicable for the design and construction of new buildings or, in the case of historic hotels, major renovations. LEED for Existing Buildings (LEED-EB) focuses on operations and maintenance and is also appropriate for historic hotels. Both systems categorize projects, in ascending order, as “Certified”, “Silver”, “Gold” or “Platinum”, depending on the number of credits achieved. Buildings certified under either the “NC” or “EB” system may equally be called “LEED-certified” buildings. USGBC is currently developing hospitality-specific modifications to the LEED rating systems which recognize unique building opportunities and challenges such as food and beverage operations, pool and laundry operations, frequent renovation cycles and transient guest populations. Some building owners choose to follow LEED guidelines when they design their project or establish their operational protocols, but do not get their buildings certified through the USGBC. These projects can still tout their green credentials, but without the LEED “brand.”

There are, admittedly, some conflicts between historic preservation and sustainable design goals. One major sticking point on many historic preservation tax credit projects is the question of window replacement. For buildings that have original, historic window sashes which are not severely deteriorated, the Secretary of the Interior’s Standards, the federally-established guidelines for preservation projects, requires that those windows be repaired rather than replaced. To improve the energy efficiency of such windows, weather stripping and latching hardware should be repaired and replaced if damaged or missing. Interior storm windows are also encouraged. Both of these options were utilized at the Hotel Phillips, an independent boutique hotel in Kansas City that used historic preservation tax credits in its renovation. In some cases, existing sashes can be retrofitted with insulated glazing. On the other hand, the tax credit rules do allow window replacement in certain circumstances. In the recent renovation of the Skirvin Hilton in Oklahoma City, poorly performing aluminum windows installed in the 1960’s were replaced with new windows, which were both more energy-efficient and more historically-appropriate. As another example of a potential conflict, historic buildings may not be the best candidates for solar panels, wind turbines or other devices, which would alter the exterior character of the building. On the other hand, most LEED projects get certified without such exotic strategies.

If there are challenges, there are also many opportunities to be green in the renovation of a historic hotel. Recycled-content gypsum board is available in many markets for the same cost as standard gypsum board, if you know to ask for it. Low-VOC paints improve indoor air quality, which is especially important if the property will remain in operation during renovation. The cost premium is minimal, especially since the majority of the cost of a painting project is in labor, not materials. The carpet industry is at the forefront of recycling their own products; many will pick up old carpet from the property. Where possible, select materials with recycled content and those manufactured regionally. When it is time to replace mechanical systems or plumbing fixtures, select high-efficiency options. Note that there may not be a payback in replacing functioning systems with higher-efficiency systems, but do make sure that the building engineer understands how the system was designed to run and check regularly that it is operating at its optimal efficiency. Since sustainable design and historic preservation are both highly specialized and technical specialties, it is important to assemble a team of advisors – architects, engineers, attorneys, accountants and others – who are experienced in these realms and able to find cost-effective solutions.

The list of LEED certified hotels is growing. There are currently more than fifty LEED certified hotels, with many more registered, but not yet certified. Of those, a relatively small number are also historic buildings. But they do exist, proving that it is possible. Cavallo Point Lodge outside San Francisco is the first national park lodge to receive LEED certification, achieving LEED-NC Gold certification and winning a Preservation Honor award from the National Trust, thus demonstrating excellence in both realms. The Nines Hotel in Portland, Oregon successfully combined historic preservation tax credits and a LEED-NC Silver certification. The Hotel Palomar in Philadelphia utilized historic preservation tax credits in its renovation and is pursuing a LEED-EB Silver certification.

Acknowledging the importance of energy efficiency in the context of historic preservation, legislation has been introduced which would modify the existing federal rehabilitation tax credit. The proposed Community Restoration and Revitalization Act would add incentives to make historic buildings more energy efficient. If enacted, tax credit projects could capture an additional $2.00 to $5.00 per square foot credit, above the existing 20% federal credit, depending on the range of energy savings achieved.

Sustainable design and historic preservation represent two significant niches in the hospitality industry. Either one can position a hotel uniquely in the marketplace. Even better is the thought that with the right expertise and incentives, they can co-exist and in fact, reinforce each other’s goals. Together they are a rare commodity, enriching the travel experience.

This article was co-authored by David Plank, Associate Principal at Kahler Slater. Mr. Plank's areas of expertise include the restoration of historic hotels and other historic buildings, university-based hotels and sustainable design. Mr. Plank's interest in historic preservation has led Kahler Slater to become a key partner in the renovation of historic hotels throughout the United States. Several of the buildings he has worked on are listed on the National Register of Historic Places and have utilized historic preservation tax credits to facilitate their restorations. Mr. Plank also has a strong interest in environmentally responsible architecture and played a key role in the sustainable design effort for Manpower's corporate world headquarters building, which has been awarded LEED Gold Certification. Mr. Plank is a registered architect and a LEED Accredited Professional. He has a Bachelors degree from Carleton College and a Master of Architecture from the University of Wisconsin-Milwaukee. He has spoken on the topic of historic hotel renovations at national and state preservation conferences and his projects have won awards for historic preservation and design. Mr. Plank can be reached at 414-272-2000 or dplank@kahlerslater.com

Douglas Nysse is a Principal at Kahler Slater, an interdisciplinary enterprise offering experiences within cultural communications, planning, research, architecture, interior design, and graphic design. His experience design projects include the restoration of historic hotels, large urban mixed-use projects, and premier destination resorts. Mr. Nysse’s interest in real estate development and planning has led Kahler Slater to become a key partner in the development of fine hotels and resorts throughout the United States, and internationally. Mr. Nysse can be contacted at 414-290-3794 or dnysse@kahlerslater.com Extended Bio...

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