Reining in Utility Expenses: Sustainability Practices Help Hoteliers Protect Their Bottom Line

Ambitious climate and decarbonization efforts have heightened the demand for electrified and energy-efficient buildings. Regulatory frameworks are evolving from simple incentives to stringent compliance measures. Recently, states and cities have enacted building performance standards (BPS) that mandate energy performance and emissions reductions, as well as implementing benchmarking and transparency policies. As a result, real estate operators must meet these standards to mitigate financial risks associated with non-compliance, further motivating them to enhance performance.

Simultaneously, utilities and third-party program administrators are tasked with meeting multiyear energy savings targets, concentrating on initiatives like peak demand reductions. This alignment of incentives fosters cooperation between utility providers and business consumers to identify energy-reduction opportunities...

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RSK: Utility costs are one the major expense items in motel/hotel properties. Getting them under control is key to the bottom line.....but at what cost and what rate of return?