Checking in as the Hospitality Industry Embraces Sustainability
GBCI: 0920012607This session will feature case studies and lessons learned from renowned hotel owners and sustainability consultants that are driving utility cost reduction programs at the property-level and across national hotel brands, from budget hotels to five-star luxury resorts.
- 1.5 CE
In the United States and abroad, the hospitality industry generates over $450 billion in annual revenue. Hotels are increasingly incorporating sustainability into their service offerings, from guest rooms to meeting planning to food and beverage. Green certifications such as LEED and Green Key have gained traction in the market, primarily driven by investor demand and evolving brand standards. However, larger scale adoption faces many challenges that are unique to the hospitality industry – including franchise ownership structures, balancing utility performance with brand standards and the guest experience, limited ownership control of hotel operations, and management team compensation structures which are based on gross revenue rather than net operating income. These barriers can be overcome through close collaboration with hotel brand representatives and on-site management teams to develop strategies that align with brand standards, incorporate sustainability best practices, incentivize management teams based on operational performance, and reduce operating expenses and enhance revenues through green meeting practices. However, the true testament to the value of sustainability in the hospitality industry will occur once the appraisal community more fully integrates sustainability into property valuation.
This session will feature case studies and lessons learned from renowned hotel owners and sustainability consultants that are driving utility cost reduction programs at the property-level and across national hotel brands, from budget hotels to five-star luxury resorts. Jim Landau, a Director at Metlife, will discuss their hospitality platform and share the challenges and opportunities faced through the implementation of an aggressive utility cost reduction program at the iconic Fairmont Hotel in the pursuit of LEED EBOM certification and the impact of these efforts on the hotel’s revenue streams and valuation. Anica Landreneau, the Director of Sustainability Consulting, Global at HOK, will discuss strategies across different tiers of hotel brands in the US, such as the Westin and Home2 by Hilton, and share a net zero energy, water, and waste plane for a 375 acre mixed-use resort development in Columbia. Deb Cloutier, Principal, JDM Associates, will share her perspectives and key sustainability trends affecting the hospitality industry drawing on experience over the past 25 years supporting utility cost reduction programs for large institutional and private equity owners, and voluntary public-private partnerships.
- Discuss current hospitality industry trends for integrating sustainability into hotel service offerings and operations.
- Learn how to implement utility cost reduction programs at the property-level and across large hotel brands and successfully navigate through the challenges and contradicting goals unique to the hospitality industry.
- Understand the potential impact of sustainability and LEED EBOM certification on a hotel’s revenue stream and valuation.
- Highlight successful strategies for balancing sustainability with historic preservation in iconic hotel properties.