Sustainability in hotel development and operations is moving at different speeds. Some hotel owners have yet to install LED lights, while others are embracing comprehensive programmes like B Corp and BREEAM.
Gregor MacNaughton, chief technical officer at white label operator RBH Hospitality Management says that attitudes to ESG investments vary considerably from one owner to the next.
But positive consequence of the spike in construction costs has been a new focus on the refurbishment and extension of existing properties. “This is the first year at RBH in my memory that we have no new builds in progress,” MacNaughton says.
Energy-saving measures
Some owners are investing in energy-saving measures like voltage optimisation and in-room occupancy sensors.
The global hotel brands have moved at different speeds too when it comes to mandating sustainable practices.
In 2021, IHG were the first to set median monthly and annual energy targets for operators, while Hilton introduced a similar policy soon afterwards, and Accor and Marriott are still to follow suit.
“We took the best bits of the IHG and Hilton targeting systems and extrapolated that across all our hotels. So now we give all our hotels, monthly and annual energy targets, and we've incentivized our general managers to hit those energy targets. So it's become part of our ethos and culture,” MacNaughton expands.
Pathway to success
A lack of industry-wide mandates makes navigating the best path to sustainability far from straightforward. There are seemingly endless decisions to make.
“We're hotel people, not environmental scientists. It's a minefield out there. Where do you source your data? What's the best technology to use?” said Ben Harper, CEO, Watergate Bay, Another Place & Beach Retreats.
For his business, Harper said adopting the B Corp certification programme has provided a solution: “B Corp has been really helpful for us because it's kind of forced the issue, and it starts being less of a decision and more of a mandate.”
Even then, there will always be differences of opinion. Is it better for the environment to knock down an obsolete building and start again, or do a conversion?
Harper said: “I was in a conversation yesterday where we were being challenged because we've renovated this old seaside hotel rather than knocking it down and starting again, because [apparently demolition] is a quicker route to net zero.”
New builds, when they happen, must be future proofed for the next 100 years at least, and the mistakes of the past - like the use of RAAC concrete - must never be repeated, sayd Steve Walford, vice president, Cedar Capital Partners.
New buildings should have easy-to-remove facades and floor plates with as few columns as possible, so that the core building is easy to convert into offices, hotel rooms or residential.
“Why knock it down? We should not still be having this conversation in 50 years. There’s a huge cost to demolition and a huge cost to new build. We need to be building the right buildings for the future now to stop having to look back constantly.”
Moving on to look at energy efficiency for operating hotels, easy wins include voltage optimisation, sub-metering, elevator destination control, and EV charging bays.
Voltage optimisation involves installing a transformer where electricity enters the building and can lead to 6 to 8 percent savings per year.
MacNaughton notes: “We've installed it in about 15 hotels. We've got another 10 in the pipeline. It costs between £10,000 and £20,000 per site, and it's a two-year payback. So it's a no brainer.”
Building management
Walford says Cedar Capital Partners works with EP&T Global, a supplier of data driven building management services.
EP&T has installed sub-meters throughout hotels to benchmark and address wastage and anomalies. Walford said: “We own the properties, so we want them to be as efficient as possible because it affects our bottom line. EP&T will guarantee you certain savings to cover the cost of installing the sub-metering so there's no real capex outlay. It's a win-win. They save you the money to pay the costs. And once that's done, you’ve got a more efficient hotel and more profit each year. So, when you go to sell that property, it's worth more.”
Walford highlights more energy-saving measures that improve the guest experience too. Destination control of lifts (elevators) increases their speed and efficiency, minimising unnecessary stops and reducing wait times.
“The ROI from EV charging bays is great,” he adds. “We're putting around 40 in at The Belfry [golfing hotel and resort in England], so guests have a game of golf and four hours later, their car is fully charged for the drive home. We've made money. They've made efficient use of their time. It turns out there is a way to keep everybody happy. You’ve just got to look for it.”
All quotes taken from the panel “Building Tomorrow: Cost-Effective Innovations in Construction & Design” at the Annual Hospitality Conference 2024 in Manchester.