Mr. Haynie, SR.

Eco-Friendly Practices

Analyzing the Cost Benefits of Green Hotels

By Michael Haynie, SR., President, Parkway Hospitality Management

As hotel managers, we see firsthand the costly and wasteful use of resources our properties generate on a daily basis. Striving to be more environmentally friendly through the efficient use of energy, water, and materials can help to eliminate some of this waste while also providing cost benefits for your business. Green hotels have seen benefits such as increased profits and reduced costs and liabilities. By choosing to be a leader in sustainability, you can enhance your business’s reputation, brand and market value, and gain many other intangible benefits. You can also reap federal and state tax benefits for your efforts. The bottom line is that “going green makes green.”

The use of eco-friendly practices can actually reduce your operating costs. Lighting is a large energy-using system and is an easy area for reducing energy costs. Fluorescent lights produce more light than incandescent lights and last 8-10 times longer. A compact fluorescent light will pay for itself in less than one year. Solar power is also being used more commonly. It is a limitless natural resource with economic and environmental benefits. Hotels are using solar power in systems to provide thermal and light power. For example, hotels can use photovoltaic panels to harness solar power for heating the pool and sauna, decreasing utility costs and reducing vulnerability to fluctuations in energy prices.

Water Consumption is another area where hotels have a great ability to save resources and money. Lowering the temperature of the washing machine water by 20 degrees can save a great deal of money for your business, and the linens come out just as clean. Low-flow shower heads and faucet aerators are good options for conservation as well, and pay for themselves within 3-4 years. The use of placards that encourage guests to re-use their towels is a practice that is becoming more widespread and can help save energy costs. Some businesses are also starting to use dual flush toilets, which alters the amount of water used to flush depending on the type of waste. These toilets are very efficient and can greatly reduce the amount of water used.

Many hotels are hesitant to establish green programs in solid waste management, such as recycling or composting programs, because of the large amount of cooperation needed among staff and guests. However, recycling and composting of solid waste material can provide large cost benefits for businesses. Hotels produce a large amount of paper, aluminum and plastics that can be recycled at a cost savings. By placing recycling bins next to trashcans throughout your hotel, staff and guests will be more inclined to recycle. A large portion of the solid waste produced in hotels is food. Spoiled food and leftover food scraps can be composted and used to enhance the soil in the hotel’s gardens.

There are many other ways to save resources and money. Buying local food cuts out the middle man, puts more money into the local economy, and reduces transportation costs and energy-wasting long hauls. You can also build a garden and grow your own herbs or vegetables to use in your hotel’s restaurant or food service. Green roofs, roofs covered with plants and vegetation, are another option. These eco-friendly roofs help with storm water management, can improve air quality, help to lower air temperature, and can provide insulation for your building. All three of these options not only help to improve your business, but also help to improve the area and community around your hotel.

Going green can also help your property attract the 43 million self-proclaimed “eco-tourists.” Surveys have found that these travelers are willing to pay 8.5% more to environmentally sensitive travel providers. Over 90 percent of U.S. travelers surveyed by the travel publisher Travel Zoo said they would choose a green, environmentally conscious hotel over a non-sustainable, non-green hotel if it was comparable in price. In my opinion, analyzing the cost benefit of a green hotel is still relative to the market conditions and real estate. While the cost of building a green hotel or LEED certified hotel is still more expensive than a traditional building, the cost has come down considerably. There are many advantages of a LEED certified hotel. There are still many federal and state programs with tax incentive programs, making LEED certification a good business decision as well as the right thing to do environmentally.

Can you build a green hotel and keep its price structure comparable to the market and competitive set pricing? If all hotels in the set are green hotels, there will not be a problem having a comparable price structure. If not all of the hotels in the set are green hotels, you will really have to do your homework and understand the cost of the build and potential operational cost as well to ensure it is a good fit for your market.

Lets talk about converting a hotel to be environmentally friendly:

Hotel Managers have become more conscious about greening initiatives and LEED certification and there has been much abuzz in the industry over the past several years. Recently however, many hotels have been in survival mode and have pushed green programs to the back burner or implemented green programs less aggressively. Many customers inquire about hotels’ programs related to environment and greening initiatives and it is smart for a hotel manager to have a prepared statement regarding managing an environmentally friendly property. It may just become the Sales and Marketing tool you need to gain a bit more share of occupancy and rate. However, in order for a program to be sustained, it needs to be formalized and thought out. Since there are so many components in the environmental arena, such as energy conservation, recycling (water and waste), and the use of organic food products, it is wise to look at your property and decide what works best for you, what your staff is capable of doing, and where you would reap the greater return in environmental impact and ultimately MONEY!! Some things to consider are: What is most important to the community and your client base? Is a pending renovation coming up where you could incorporate some program ideas during the course of the renovation? Do you at least have the basics in place now? These would include programs such as an in-house recycling program, purchasing from regional vendors and artists to reduce transportation and packaging, a green roof (your employees may love this as a project) and a towel exchange program.

Other ways to get your foot in the door and to start working towards becoming green are installing high-efficiency plumbing fixtures, which can help save millions of gallons of water and reduce water usage by 33%, choosing to use low-emitting volatile organic compound (VOC) paints and adhesives, carpets, which reduces indoor air contamination, and using compact fluorescent light bulbs and Energy Star Systems. There are so many other basics besides the obvious expensive aspects of becoming environmentally friendly that you could implement, such as a ride share program. These programs could be valuable as a marketing and public relations tools but are also cost effective enough to implement during the current economic down turn. Some of the costs you should be aware of that are associated with going green are: Consultant fees, commissioning, manager and associate training, and time. However, many of these upfront costs are recouped with huge reductions in water consumption, energy and hotel waste. The bottom line is that we all must be conscious of the public’s desire to see us do more on behalf of the environment, even if they are not doing it in their own homes. We should also remember that costumers are willing to pay more but not much more over what they would pay for a non -environmental friendly hotel.

One very important key to your hotel’s success in going green is your employees. Employees are the driving force behind the success and profitability of a hotel’s programs. Hotel guests change everyday, but the consistent commitment of employees to advocate and educate each arriving guest, ensures continuity of a hotel based program and its success.

Here are some green ideas for your employees that have been successful at the property level:

• Walk up three and down five flights of stairs versus taking the elevator. In addition to saving energy, it also promotes a healthy work place.
• Carpooling or taking public transportation to help with air quality issues and traffic congestions ( seemingly small but has a major affect if all hotels in the market adapt this policy)
• Ask housekeepers to set room thermostats on conservation settings such as 68-70 for heat; 72-74 for cooling and keep only minimal lights on in guestrooms (namely entry way lighting).
• Ensuring proper signage is placed in each room promoting our environmental programs with towel exchanges, lighting and water waste.
• Cutting up paper for post it notes from a “used” paper bin located near each copier machine.
• Purchase from vendors who are environmentally responsible. Buying fresh produce and meats from local farms.

Overall we have found that going green is a good decision and reaps many benefits. Even if your hotel cannot afford the costly environmentally friendly options, such as a green roof or solar panels, there are many low cost options available, such as implementing a towel exchange program or using florescent lights. Making these adjustments can not only help to bring in more customers and revenue, but they can also help your community.

Michael Haynie has devoted his entire professional career to the lodging and hospitality industry. After attending Northeastern University in Boston, MA, he took on various entry level positions before rising through the ranks to the executive level positions he has held for many years. Mr. Haynie has experience in every facet of hotel operations and has served in leadership capacities in hotels ranging from economy to luxury. Prior to launching his own hotel management enterprise, Mr. Haynie served as the Vice-President and Managing Director of Baltimore’s Tremonts Hotels which encompassed the upscale Tremont Plaza Hotel and the economy Tremont Park Hotel. Mr. Haynie, SR. can be contacted at 443-604-3835 or mhaynie@parkwaymgt.com Extended Bio...

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