Reining in Utility Expenses: Sustainability Practices Help Hoteliers Protect Their Bottom Line
💸 In response to rising demand for energy-efficient buildings, U.S. cities and states have introduced building performance standards mandating energy performance and emissions reductions. The U.S. Travel Association notes 90% of travelers prefer sustainable options, and 76% of business executives choose sustainable corporate travel, even at higher costs. Companies adopting science-based greenhouse gas-reduction targets increased by 102% in 2023, while 85% of large companies aim for net-zero emissions. U.S. electricity prices have risen by 3.6% in the past year, with an expected continued increase. In 2023, the average hotel utility cost rose by 3.5%, with resort properties experiencing the highest costs at $4,933 per available room (PAR) annually. Limited-service and extended-stay hotels spent the least on utilities. Room revenue in the U.S. lodging industry is projected to grow annually by 2.6% through 2026. Efficiency improvements remain critical, with strategies including upgrading equipment, water-saving measures, smart energy management, renewable energy adoption, and integrating ecosystem services for sustainability.
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