Mr. Poad

Eco-Friendly Practices

Nine Areas Where Hotels Can Green Up

By Jim Poad, Director of Client Solutions, Advantage IQ

With oil prices recently hitting an all time high of $100 a barrel, business leaders have never been more motivated to optimize their energy use. Thanks to market forces, going green now makes good business sense.

And there's no better industry to make the business case for going green than hospitality. The hotel industry spends nearly $5 billion annually on energy. Much of that is wasted on empty rooms, inefficient equipment, and poor energy management practices. That's the bad news.

The good news is there are ample opportunities for hoteliers to cut energy consumption and costs, without adversely affecting the comfort of guests. Better still, improving hotel efficiency isn't hard to do and delivers a fast return on investment.

With that in mind, here are some basic, yet effective demand-side initiatives to lower hotel operating costs. Some of these ideas apply to existing buildings; some are for those still on the drawing board. All will have a measurable impact on the bottom line.

Once done, the greening of your hotels can be used as a marketing tool to win more consumers' hearts and dollars.

Lighting Up

Lighting is the low-hanging fruit of energy efficiency. It's something any hotelier can easily address to quickly cut energy demand.

In most hotels, the overheard lighting is fluorescent T12 with magnetic ballasts. You'll find these in hotel lobbies, restaurants, hallways, and other public areas. Replacing those T12 bulbs with high-efficiency T8 bulbs and electronic ballasts can cut energy costs at least 40 percent.

Hoteliers can also replace incandescent bulbs with compact fluorescents (CFLs) in guest rooms and lamps. CFLs cost two to three times more than incandescents, but use 75 percent less electricity, and last 10 times longer.

That's a $30 reduction in electricity costs over each bulb's lifetime. Now multiply the 50 to 80 percent savings by hundreds or thousands of bulbs per building. CFLs also produce 75 percent less heat, a plus in the summer when air conditioners are running.

It gets better. Utility companies and state agencies are offering incentives to hotels that install energy efficient equipment, such as lighting. These incentives can cut the cost of lighting retrofits in half.

Savings Sense

Hoteliers can take their green initiative to the next level by installing an occupancy sensor in every room. These can reduce energy costs by as much as 80 percent. They sense when rooms are occupied, and automatically adjust lighting and HVAC systems.

The sensors typically use infrared light or ultrasonic waves to determine whether people are moving about their rooms. If they don't detect any guests in action, off go the lights, down goes the HVAC (or up in the summer) until people return to the room.

Surprisingly, occupancy sensors have been available for over a decade, but only about 10 percent of hotels currently use them.

That wouldn't be surprising if oil cost $50 a barrel, but at today's prices, this inexpensive, highly effective solution should be an imperative at every hotel. They cost only $30 to $130, with a payback period of six months to five years, depending upon occupancy rates and room sizes.

Top it Off

Another way to kick-off an energy efficiency initiative is to start at the top: the roof. Creating a so-called "green roof" is one of the easiest and least invasive ways to boost a building's R-factor.

It's not a new concept. The practice of putting sod atop buildings has been going on for centuries. Europeans have been using a contemporary approach in residential and commercial construction for about 20 years.

A green roof can improve the effectiveness of a building's insulation by at least 25 percent and reduce storm water runoff up to 75 percent. Their permeable surface absorbs water that would otherwise contribute to urban flooding due to drainage and sewer overflow, and prevents polluted rainwater water from re-entering the environment.

To green a roof, contractors put two to 12 inches of soil down, and allow for landscaping additions, such as flowers, bushes, and trees. The soil is a natural insulator that keeps heat out in the summer and in during the winter.

Some hotels have turned this into a marketing platform by converting their roofs into outdoor sanctuaries for guests and employees to enjoy, all the while promoting their roof as part of a green initiative.

Another promotional technique: Market the green roof as a way for urban hotels to provide guests with the freshest meals available by growing food on the roof. Imagine serving guests with fresh veggies made from ingredients plucked right from the rooftop, and promoting that fact right at the table.

Go with the Flow

When talking about cutting energy costs, most hoteliers think heat and electric. That's only part of the equation. Water represents up to 30 percent of a hotel's energy demand. Americans use an average of 650 gallons per person annually, whether at home or on the road.

Thankfully, there are several inexpensive conservation techniques. First up is installing low-flow toilets and shower heads. Standard toilets use five to seven gallons of water per flush, while low-flows use less than a gallon, according to the Alliance to Save Energy.

An average shower head uses five to eight gallons of water per minute. Low-flows use less than 2.5 gallons. Installing efficient aerators on faucet systems is another simple money saver. These cut water flow by 3.2 to 17.2 gallons per day, per room.

And here's one of the easiest tricks in the book: toilet dams. These are, basically, a brick in the tank. They take up space in the tank, so less water is required to fill the tank after each flush. This technique alone can cut water use by 10 percent per room.

Lighten the Load

Reducing laundry cycles can cut water and sewage costs by 25 to 40 percent, and drive down labor costs by 40 percent. Start by offering guests a "green option" of washing their towels and sheets every three days, instead of every day.

Cutting the number of loads delivers a triple whammy benefit. Running washers and dryers less often will save water and cut electric bills. It also decreases the amount of volatile organic compound (VOC) emissions released by detergents.

Moving upstream, technologies such as The National Energy Services' Ozone Laundry System promise to cut laundry operating expenses by 50 percent, and minimize the environmental impact of laundering.

For example, the 821-room Hilton Hotel in Downtown Minneapolis adopted the Ozone Laundry System in 2007. Hotel officials say the system cut laundry costs in half by decreasing their use of hot water and cleaning agents.

Star Treatment

Taming a hotel's energy appetite gets harder when the full array of equipment that's used is considered. Kitchens need ovens, refrigerators, freezers, and dishwashers. Laundry facilities need washers and dryers. Offices and conference rooms need computers, printers, projectors, and fax machines. Hallways and guest rooms need HVAC systems, televisions, and coffeemakers.

Obviously these necessities burn a tremendous amount of energy daily, and no hotel can survive without them. But hoteliers can ensure equipment is in line with national efficiency standards by buying only ENERGY STAR appliances.

ENERGY STAR is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy. It helps hotels save energy and money by making it easier for buyers to identify energy efficient products and practices, through the ENERGY STAR label.

Last year ENERGY-STAR-branded equipment saved $14 billion in energy costs, and conserved enough energy to avoid greenhouse gas emissions equivalent to 25 million cars. ENERGY-STAR-equipped hotels use 30 percent less energy than average buildings, without comprising comfort or quality of service.

By specifying that all new equipment purchases must be ENERGY STAR certified, hoteliers will position their buildings for decreased energy use and greater cost savings.

Recycling Redux

Most hotels don't have a proper recycling program. It's virtually non-existent in guest rooms, and rarely found in hotel systems in general. If it's not required by city or township regulations, most hotels trash it.

The reason for the environmental disregard is simple: cost. Recycling brings no immediate gain to hotel operations or profits. Worse, it costs hoteliers money by adding labor for sorting bottles, cans, and paper.

This is about to change. An increasing number of guests want the businesses they patronize to clean up their act. More hotel managers are being confronted by guests who want recycling. In fact, the U.S. Office of Travel and Tourism found 85 percent of travelers said they are more likely to support companies that preserve the environment.

And 43 million U.S. adults said they'd pay up to 8 percent more at a hotel that practiced environmental sustainability. Today, devising a recycling program can strengthen your hotel's green initiative platform, and appeal to a growing number of eco-travelers. When and if you have a recycling program, the key to economically justifying it is to be sure you're promoting it loudly to guests.

Clean Credits

Incorporating renewable energy into a hotel's electric load is as easy as buying Renewable Energy Credits (RECs). These are tradable environmental credits that represent proof that one megawatt-hour of electricity was generated from a renewable energy source.

Buyers can choose to incorporate wind, solar, biomass, or a combination of the three into their energy load. They can also decide what percent of their load to convert, and over how long. RECs can be sold, traded, or saved for later. Hoteliers can purchase RECs now as a hedge against future cost increases.

Today RECs are relatively inexpensive. But when a new administration takes over in 2009, it will likely take a more proactive role in requiring businesses to use a renewable energy, just as European nations now require as part of the Kyoto Protocol. This increase in demand for renewables will probably tighten sources and raise prices.

Advantage IQ suggests hotels begin by converting approximately 4 percent of their energy load to renewable, which would potentially qualify the company for the EPA Green Power Partnership Program. This program recognizes companies' commitment to renewable energy, and helps identify green power products to meet a hotel's needs.

LEED the Way

Lastly, here's an approach for hoteliers who haven't broken ground. Make certain builders and designers strive for Leadership in Energy and Environmental Design (LEED) certification. LEED-certified buildings optimize the use of resources during construction and use.

LEED establishes standards for environmentally sustainable construction. It was developed by the U.S. Green Building Council (USGBC) in 1998, and is now widely used. The LEED rating system addresses six key issues: sustainable sites, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, and innovation and design processes.

LEED buildings create healthier work and living environments, keep maintenance and running costs down, contribute to higher productivity, improve health and comfort, and have a positive impact on the environment, according to the USBGC.

They cost more to build, but their higher costs are overshadowed by the building's economic benefits. The USBGC estimates upfront investment is 2 percent higher than a standard building, but will yield over 10 times the initial return over the building's life.

To earn LEED credits, a new building must use green materials during construction, such as recycled concrete, wood, and steel. Other examples include carpeting produced with 100 percent renewable power; low-toxic, low-odor paint; and cabinets, shelving, and countertops built with formaldehyde-free resin and reclaimed agriculture fiber.

After construction, maintaining LEED certification requires everyday green commodities such as toiletries created with recycled material; and biodegradable, non-toxic cleaning products.

Energy costs are unlikely to stop their upward climb any time soon. Given market conditions, hoteliers are well-advised to plug into the green initiative. Those who do will find these practices will help them see green in one very importance place: their bottom line.

Jim Poad, a 30-year energy industry veteran, serves as Director of Client Solutions for expense and energy management firm, Advantage IQ. In this capacity, Mr. Poad is responsible for developing and directing the Company’s energy management programs on behalf of clients. He works with clients to develop and implement a customized strategy to better manage energy usage, reduce overall operational costs, and meet overriding corporate objectives. He has helped clients save millions of dollars through the implementation of supply-side and demand-side initiatives. Mr. Poad can be contacted at 608-755-1650 or jpoad@advantageiq.com. Extended Bio...

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