Improve Profits With Renovation, Redevelopment and New Construction

By Bob Mattler Managing Director, Pace Equity | January 15, 2017

There is a new innovative way to pay for hospitality construction projects: Property Assessed Clean Energy (PACE) financing. PACE, adopted as enabling legislation in 32 states and with active programs in about half of them, is gaining momentum as a flexible, available and creative tool in which to finance almost any technology that saves energy and/ or water. PACE can take the place of expensive loans or additional owner equity to finance construction projects that can be repaid long term from those very same energy and water savings.

This article will explain Property Assessed Clean Energy, who pays for PACE, some common building systems ripe for PACE financing, who is using PACE and why. We'll take a closer look through some case studies how hospitality developers and owners are already taking advantage of this new economic development tool.

What is Property Assessed Clean Energy (PACE)?

PACE offers an innovative, affordable method to help solve the challenges today's building owners & developers face. PACE uses the financial power of long term energy/water savings to make improvements possible today, while spreading out the costs over a long period, in many instances up to 20-25 years. PACE outperforms traditional forms of financing in many ways:

  • Borrowing is available through non-recourse financing
  • Replaces more expensive cost of capital
  • Boosts property value without negatively impacting the balance sheet
  • Preserves borrowing capacity for other projects or more essential business plan goals
  • Obligations pass to new owners seamlessly when the property is sold
  • No upfront cash requirements in most circumstances and no out of pocket
    costs

PACE is a financing mechanism providing the power for building owners to recapture wasted energy and water today. PACE also allows developers to obtain low cost capital for their projects resulting in more efficient buildings, lower operating expenses and a more valuable building.

Choose a Social Network!

The social network you are looking for is not available.

Close

Hotel Newswire Headlines Feed  

Coming up in February 2019...

Social Media: Getting Personal

There Social media platforms have revolutionized the hotel industry. Popular sites such as Facebook, Twitter, Pinterest, Instagram, Snapchat, YouTube and Tumblr now account for 2.3 billion active users, and this phenomenon has forever transformed how businesses interact with consumers. Given that social media allows for two-way communication between businesses and consumers, the emphasis of any marketing strategy must be to positively and personally engage the customer, and there are innumerable ways to accomplish that goal. One popular strategy is to encourage hotel guests to create their own personal content - typically videos and photos -which can be shared via their personal social media networks, reaching a sizeable audience. In addition, geo-locational tags and brand hashtags can be embedded in such posts which allow them to be found via metadata searches, substantially enlarging their scope. Influencer marketing is another prevalent social media strategy. Some hotels are paying popular social media stars and bloggers to endorse their brand on social media platforms. These kinds of endorsements generally elicit a strong response because the influencers are perceived as being trustworthy by their followers, and because an influencer's followers are likely to share similar psychographic and demographic traits. Travel review sites have also become vitally important in reputation management. Travelers consistently use social media to express pleasure or frustration about their guest experiences, so it is essential that every review be attended to personally. Assuming the responsibility to address and correct customer service concerns quickly is a way to mitigate complaints and to build brand loyalty. Plus, whether reviews are favorable or unfavorable, they are a vital source of information to managers about a hotel's operational performance.  The February Hotel Business Review will document what some hotels are doing to effectively incorporate social media strategies into their businesses.