Kimberly Moffitt
Director of Marketing
HVS Eco Services

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Would you spend $5,543 today if you knew that you would receive $7,417 a year from now and every year thereafter?

I think you would! These figures equate to a 0.75-year payback period and a 133% first-year return on your investment.

Considering that the typical equity investor seeks a 20% return on his investment, the above offer sounds very enticing. The other good news is that it is possible for every hotel owner and operator to realize this cash savings by focusing hotel operations toward saving the environment. We have often found that when a hotel implements an environmental program that does not negatively impact the guest experience, it actually reduces operating costs, increases marketing opportunities that aim to attract untapped revenue streams, and improves employee morale.

Over the years, a variety of environmental programs for hotel properties has evolved, but perhaps the most noticeable has been "green rooms." Usually 5% to 10% of a hotel's guestrooms are transformed into "green rooms" by the addition of water purifiers, air filtration units, and all-natural linens and amenities, and are then sold at $10 to $15 above rack rate.

Although these rooms have been well received by travelers, people are beginning to question the positive effect of these rooms on the environment.

The basic issue is: just what makes something environmentally sensitive? Usually, any product or service whose impact on the environment is less than that of a conventional product or service is considered to be eco-friendly.

In other words, a hotel property that has made a conscious effort to conserve energy, water, and so forth has less of an impact on the environment than a typical property.

So, how can a hotel claim that it practices environmentalism when only 5% to 10% of its guestrooms are affected?

What about the remainder of the property, such as the laundry, kitchens, and ballrooms that, together, consume most of the energy at a hotel property? When viewed in this light, it becomes apparent that "green rooms" do not affect our environment on a large scale, and should not be synonymous with a comprehensive environmental program. Instead, they may be installed to enhance an existing program that decreases operating costs and positively benefits the environment.

By implementing environmental strategies, a hotel can reduce the consumption of natural resources and streamline operating procedures to become more efficient. These are the tactics that will result in significant cost savings.

Decreased Operating Expenses

In order to have the most significant impact on the environment, and eventually, your bottom line, every department in a hotel must be evaluated in the areas of energy efficiency, water conservation, and solid waste management. Within each department, consider not only the equipment that is being used, such as ovens, washing machines, copiers, vacuums, HVAC equipment, and lighting, but also the operating procedures that are in place within each department. The goal is to determine which equipment should be upgraded to become more energy efficient, as well as to determine how policies and practices can be altered so that day-to-day operations result in less energy and water being consumed, and a smaller volume of waste being discarded in landfills. In fact, you will find that there are an abundance of modifications that either cost nothing or will pay for themselves within a few months. For instance, by contacting your local utility company, you may be able to identify available term discounts, rebate programs, rider applications, reactive charges, and so forth. You may currently be eligible for a number of discounts, and not even know it!

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