Improving Cash Flow While Embracing Sustainability
By Marky Moore Founder, Capital Review Group | October 05, 2014
The Hilton Los Angeles Universal City, using a combination of tax incentives, rebates, and $7 million in financing utilizing the LA County PACE (Property Assessed Clean Energy) Program, has undergone a significant transformation, embracing energy efficient upgrades and water conservation measures. The cost of the Project was $7 million while the value of the upgrades and the additional value of added net operating income was in excess of $12.5 million and the value of the property increased by more than $30 million. Overall, the project addressed a number of concerns, including deferred equipment maintenance, compliance with the Hilton global design standards, and adherence to sustainable practices.
When the Hilton Los Angeles Universal City embarked on an extensive program to retrofit the 23-story -500 room property it put itself in the hands of experts, including ReNewAll, an LA County PACE project developer, and GEXPRO, a leading distributor worldwide of electrical solutions and supplies, which steered the Hilton Los Angeles/Universal City through energy efficiency audits and project design. These companies also helped guide the hotel through the Los Angeles County PACE Program which financed this $7million project.
The Los Angeles County PACE Program is a unique and inventive method property owners can use to pay for upgrades in energy efficiency, as well as renewable energy projects, and water conservation measures. Project costs of 100% can be funded though PACE, which can be repaid with property tax assessment for up to 20 years. The PACE Program can finance a variety of properties including industrial, agriculture, commercial, and non-profit, as well as multi-family housing.
The project development team for the commercial PACE Program included sustainability firm ReNewAll, who along with GEXPRO, coordinated and managed the project team.
ReNewAll assisted the Hilton with the selection and screening of contractor candidate selection under the PACE requirements. The electrical solutions distributor assisted in the development of an integrated energy savings plan, working with Hilton to analyze its need for green building upgrades. Specifically, GEXPRO was tasked with guest thermal comfort and provided unique fan motors for the guestrooms. Additionally, GEXPRO was part of the team who recommended installing new elevators, energy efficient glass, 500 low-flow shower heads, 250 new bathtubs with showers, and new LED lighting, reducing its energy consumption by an impressive 50%.
"It was a pleasure working with Hilton LA/Universal and ReNewAll to assemble the ideal team of contractors, solutions and services that made this project possible. Hilton's interest in a holistic solution and the assembly of this multi-disciplined team is a great example of public-private partnership and collaboration that can be replicated anywhere – and we intend to do so," said Felippe Marques, Global Hospitality Director for GEXPRO.