How Hotels Can Optimize Energy Costs Without Compromising Guest Comfort

Still reeling from the impacts of the COVID-19 pandemic, the hospitality industry now faces a new challenge: soaring energy costs. This latest hurdle threatens to impede the recovery of hotels working to regain their footing under the strain of tight budgets.

Utility costs in the United States have outpaced total operating revenue growth over the last four years, with utility department expenses rising from 2.9% of total revenue in 2019 to an estimated 3.3%.

Hotels are now caught in a delicate balancing act. They must find ways to cut costs and optimize energy usage without compromising the quality of guest experiences. This challenge is especially acute because heating, ventilation, and air conditioning (HVAC) systems—essential for guest comfort—can account for up to half of a hotel’s total energy use.

The challenge lies in implementing energy-saving measures that enhance their experience through improved technologies and services. Hotels can weather the current energy crisis and position themselves for long-term success by striking this balance.

How can smart lighting solutions save on hotel energy costs?

Think about the last time you stayed in a hotel room. You probably left the bathroom light on all night long as a guide in your unfamiliar accommodations. Now, imagine a hotel full of other guests engaging in the same practice, and it becomes apparent why hotels might want to invest in smart lighting solutions to cut energy costs.

Smart lighting solutions represent a significant opportunity for hotels to optimize energy costs while maintaining—even enhancing—guest comfort. Lighting accounts for approximately 23% of a hotel’s energy consumption in the U.S. Implementing simple solutions can lead to substantial savings and improved operational efficiency.

Upgrade to LED bulbs

LED bulbs might seem like a small change, but they’re up to 1,000% more efficient than traditional incandescent bulbs. That translates to some serious cost savings on electricity bills when guests tend to turn lights on and leave them on.

There’s an added benefit. LED lights have a much longer lifespan, lasting up to 25 times longer than traditional bulbs. Longevity reduces replacement frequency and associated maintenance costs, making them a cost-effective investment for hotels of all sizes.

Install automatic sensor systems and timers

Automatic sensor systems and timers further optimize lighting efficiency in hotels. These systems prevent unnecessary energy waste in unoccupied areas. In U.S. hotels, guest occupancy fluctuates, making these systems a valuable part of any energy-saving strategy.

Hotel maintenance can install automatic sensors in hallways, stairwells, and public restrooms. Automatically turning off lights in these unused spaces can significantly reduce energy consumption without compromising guest comfort or safety.

Implement smart lighting technology

Smart lighting technology offers hotels advanced control and management of their lighting systems. This technology allows for precise adjustment of brightness and color temperature, enabling hotels to create the perfect ambiance for different areas and times of day.

Lobby areas can have brighter, more vibrant lighting during the day, transitioning to a warmer, more relaxed atmosphere in the evening. Smart lighting systems can also integrate with building automation systems, providing centralized control and data analytics for more informed energy management decisions.

How does HVAC optimization save hotels on energy costs?

Optimizing HVAC systems is a critical strategy for U.S. hotels aiming to reduce energy consumption, lower operational costs, and enhance guest comfort. HVAC systems are among the largest energy consumers in hotels, accounting for approximately half of total energy expenditure.

On average, each square meter of a hotel room uses around 0.55 kWh of energy per day for heating and cooling, depending on factors such as the hotel’s size, system efficiency, and building insulation quality. This high energy usage translates to significant operational costs, with utility expenses often outpacing total operating revenue growth in recent years.

As energy prices continue to rise, the need for efficient HVAC solutions becomes increasingly urgent. With an increasing focus on sustainability, many guests prefer eco-friendly accommodations, giving hotels the perfect opportunity to adopt more energy-efficient practices.

Invest in smart HVAC systems with occupancy-based controls (OBC)

Smart HVAC systems equipped with occupancy-based controls (OBC) are transforming how hotels manage their energy use. These systems automatically adjust heating and cooling based on room occupancy, ensuring that energy is not wasted in unoccupied spaces. 

Hotels can achieve up to 30% savings on HVAC electricity costs by using OBCs. This technology reduces unnecessary energy consumption and enhances guest comfort by maintaining optimal temperatures when rooms are occupied.

Perform regular maintenance for peak efficiency

Regular maintenance is essential for keeping HVAC systems running at peak efficiency. Without proper upkeep, HVAC systems can consume up to 60% more energy than necessary due to factors like clogged filters or inefficient components.

Scheduled maintenance tasks such as cleaning or replacing filters, checking system controls, and ensuring proper insulation of ducts and pipes help prevent these inefficiencies. 

Hotels can extend equipment lifespan and avoid costly repairs or replacements by following a recommended HVAC maintenance schedule.

Install programmable thermostats and advanced analytics

Programmable thermostats and advanced analytics provide hotels with greater control over their HVAC systems. These technologies allow for precise temperature scheduling based on occupancy patterns and external weather conditions, leading to significant energy savings.

These thermostats can automatically adjust temperatures during peak and off-peak hours, optimizing energy use without compromising guest comfort. Advanced analytics offer insights into energy consumption patterns, enabling hotels to identify inefficiencies and make data-driven decisions for further optimization.

How do building automation systems (BAS) save energy?

Building Automation Systems (BAS) are sophisticated networks of hardware, software, and communication protocols designed to centralize control and monitoring of various building systems. These systems play a crucial role in modern facility management, offering significant benefits in terms of energy efficiency, operational effectiveness, and occupant comfort.

According to a report by Grand View Research, the global building automation system market size was valued at USD 75.0 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 11.1% from 2022 to 2030. This growth is partly driven by the hospitality sector’s recognition of BAS as a key tool for enhancing guest experience while reducing operational costs.

BAS can integrate various systems including HVAC, lighting, security, fire safety, and even guest room management. This integration allows for unprecedented levels of control and efficiency.

Centralized control over lighting, HVAC, and security systems

Building Automation Systems provide a unified platform for managing multiple building functions. This centralized approach allows facility managers to control and optimize various systems from a single interface:

• Lighting systems can be automatically adjusted based on occupancy patterns and natural light availability, potentially reducing lighting energy consumption by up to 30%.
• HVAC systems can be fine-tuned to maintain optimal temperature and air quality while minimizing energy usage. Smart HVAC controls can lead to energy savings of 20-30%.
• Security systems can be integrated with other building functions, enhancing overall safety and allowing for coordinated responses to security events.

This integration improves efficiency and simplifies management tasks, reducing the workload on facility staff.

Real-time monitoring and proactive maintenance

BAS enables continuous monitoring of building systems, providing real-time data and insights:

• Sensors throughout the building collect data on various parameters such as temperature, humidity, CO2 levels, and equipment performance.

• Advanced analytics process this data, identifying patterns and potential issues before they escalate into major problems.
• Predictive maintenance algorithms can forecast when equipment is likely to fail, allowing for timely interventions and reducing costly emergency repairs.

This proactive approach to maintenance can extend equipment lifespan, reduce downtime, and optimize operational costs. For example, addressing HVAC issues proactively can prevent systems from consuming up to 60% more energy than necessary due to inefficiencies.

What are some innovative technologies for managing hotel energy costs?

Innovative technologies are revolutionizing the hospitality industry, offering hotels unprecedented opportunities to enhance operational efficiency, reduce costs, and improve guest experiences. From artificial intelligence and Internet of Things (IoT) devices to contactless services and smart room technologies, these innovations are reshaping every aspect of hotel operations.

According to a report by Oracle Hospitality, 72% of hotel guests consider it “very or extremely important” for hotels to invest in technologies that enhance their experience.

Two key areas where innovative technologies are making a significant impact are energy management systems and renewable energy solutions. These advancements address the pressing need for sustainability and offer substantial cost-saving opportunities for hotels.

Energy management systems (EMS)

Energy Management Systems are sophisticated tools that allow hotels to monitor, control, and optimize their energy consumption. These systems can lead to significant reductions in energy usage and operational costs.

Some ways hotels could use EMS include:

• Occupancy-based HVAC control automatically adjusts heating and cooling based on room occupancy, potentially saving up to 30% on heating costs.
• Smart lighting control implements sensors and timers to keep lights on only when necessary, reducing lighting energy consumption by up to 50%.
• Real-time energy monitoring tracks energy usage patterns to identify areas of waste and inefficiency.
• Predictive maintenance uses data analytics to forecast when equipment is likely to fail, allowing for timely interventions and reducing costly emergency repairs.
• Automatic systems integration centralizes control over various hotel systems for improved efficiency and management.

Renewable energy sources

As the hospitality industry increasingly focuses on sustainability, renewable energy solutions are gaining traction. These technologies reduce a hotel’s carbon footprint, produce long-term cost savings, and improve brand image.

Some examples of how hotels could use renewable energy solutions include:

• Installing solar panels on rooftops or grounds to generate electricity and heat water for guest rooms and swimming pools.
• Using wind turbines in windy regions to generate electricity for the entire property.
• Implementing geothermal heating and cooling systems to use the Earth’s natural heat, reducing energy consumption for climate control.
• Connecting battery systems to store excess renewable energy for use during peak demand or when renewable sources are unavailable.

What role do staff training and guest engagement play?

Effective energy management in hotels requires a collaborative effort from staff and guests. Hotels can significantly enhance their overall energy efficiency while fostering a culture of sustainability by educating employees and engaging guests in energy conservation efforts.

This approach aligns with the growing trend of sustainability in the hospitality industry, where an increasing number of travelers are choosing environmentally friendly options.

Implementing comprehensive energy management strategies contributes to decarbonization efforts and enhances the guest experience. Smart HVAC systems and lighting controls can adjust according to occupancy and preferences, ensuring rooms are always at the ideal temperature and lighting levels. This attention to detail reduces energy consumption and leaves a lasting impression on guests, making them more likely to return or recommend the hotel to others.

Engaging staff and guests in energy conservation efforts can lead to substantial cost savings by fostering a culture of sustainability. Staff training plays a key role in creating a win-win scenario that boosts guest satisfaction and reduces operational costs.

Powering the future of hospitality: energy optimization and smart procurement

Energy efficiency is more than a cost-saving measure—it’s a strategic approach to sustainable hospitality management. Hotels can transform their operational landscape and position themselves for long-term success by working with energy procurement specialists who can implement comprehensive energy optimization strategies.

Hotels can access better pricing and potentially lock in long-term savings with energy procurement specialists guiding them through their options. A willingness to invest in smart, sustainable technologies will help hotels thrive while creating more comfortable, efficient, and appealing spaces that exceed the expectations of modern travelers.