Are energy costs cutting into your returns?
08/03/08 21:25 Filed in: Guide
Are
energy costs cutting into your returns?
We usually place utility costs under the ‘fixed expense’ section of our income statements, but the reality on the ground is that as these costs continue to outpace inflation, hotel operators need to actively manage these costs to be successful.
Before you try to look outside for a magical solution, make sure you are doing the basics first at your hotels. You should ensure that the entire property is utilizing high efficiency lighting. You should check to see that your HVAC and Laundry Equipment carry the Energy Star label indicating that they are energy efficient. You should make sure that building seals and entrances are properly insulated and secured to reduce your heating and cooling costs. You should monitor vacant rooms to make sure that housekeeping is setting correct temperature and lighting settings in the room. Finally, when your back-of-the house areas are closed for the day, so should be the lights! Consider conducting an Energy Audit as a part of your regular hotel supervision.
For larger hotel operations, you may want to consider an energy management company. These companies can implement supply and demand side energy savings initiatives. Companies like LPB Energy Manager help mitigate the risk associated with energy pricing by employing a competitive RFP process around the hotel’s electric or natural gas load.
We usually place utility costs under the ‘fixed expense’ section of our income statements, but the reality on the ground is that as these costs continue to outpace inflation, hotel operators need to actively manage these costs to be successful.
Before you try to look outside for a magical solution, make sure you are doing the basics first at your hotels. You should ensure that the entire property is utilizing high efficiency lighting. You should check to see that your HVAC and Laundry Equipment carry the Energy Star label indicating that they are energy efficient. You should make sure that building seals and entrances are properly insulated and secured to reduce your heating and cooling costs. You should monitor vacant rooms to make sure that housekeeping is setting correct temperature and lighting settings in the room. Finally, when your back-of-the house areas are closed for the day, so should be the lights! Consider conducting an Energy Audit as a part of your regular hotel supervision.
For larger hotel operations, you may want to consider an energy management company. These companies can implement supply and demand side energy savings initiatives. Companies like LPB Energy Manager help mitigate the risk associated with energy pricing by employing a competitive RFP process around the hotel’s electric or natural gas load.