Three Rules of Renovation

Rule No. 3: A Sustainable Approach to Design Will Save You Money
rom water-conserving fixtures to efficient LED lighting, sustainability initiatives not only allow hotels to be more environmentally responsible but also have the potential to dramatically cut costs. That’s why going green is a major focal point for many of the owners currently tackling renovations. According to AH&LA’s 2014 Lodging Survey, 16 percent of respondents planned to incorporate LEED in structural renovations over the next 12 months, up from 13 percent in 2012.

Taking the first steps toward becoming a sustainable hotel and cutting costs doesn’t have to entail an enormous investment or inconvenient downtime. In 2009, Starwood Hotels & Resorts Worldwide set an aggressive goal of 30 percent reduction in energy consumption and 20 percent reduction in water consumption by 2020. In 2013, Starwood added a goal to reduce carbon emissions by 30 percent in the same timeframe. With more than 1,200 properties worldwide under 10 brands, Starwood and its franchisees had a lot on their plates. But by taking a triple-bottom-line approach to sustainability, the company has made significant progress toward its “30/20 by 20” target, says Andrea Pinabell, vice president of sustainability at Starwood. Using 2008 data as a baseline, Starwood has cut energy by 12.1 percent, carbon emissions by 16.07 percent, and water usage by 17.26 percent per built hotel room thus far through the end of 2014.

“Sustainability is not making one big change—it is a lot of small efforts put together,” Pinabell explains. “In everything that we do, we look at the environmental impact, the community impact, as well as the financial impact. We look for changes that will reduce our energy and water consumption, decrease our waste production, but also provide value to our ownership.”

Ongoing foundational initiatives consist of small, no-or low-cost changes—such as installing LED lighting and low-flow fixtures—that have a return on investment of about a year or less. These foundational initiatives are projected to save $1 billion throughout the system in fewer than 10 years. Bigger capital investments involve large-scale renovations, such as mechanical equipment and irrigation improvements, as well as adopting renewable energy sources, like solar. To offset some of the costs of these big-ticket items, Starwood leverages business partnerships that will incentivize owners.

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The 873-room Westin New York at Times Square is among the properties in the Starwood system reaping the benefits of sustainable renovations. In 2011, the Westin became the first hotel in the state of New York to receive a silver certification from Green Seal, a nonprofit environmental standard development and certification organization. In June, the hotel completed a three-year, multi-phase, $33 million renovation that tackled all aspects of the property. Energy conservation enhancements included installation of two energy efficient chillers, four heating boilers, and a temperature monitoring system. Movement-activated lighting and LED lightbulbs have cut electricity costs, while low-flow toilets and faucet aerators have reduced water consumption. The 6,000 LED lights that were installed throughout the course of the project translate into an overall reduction of energy consumption by more than 30 percent. Once four more separate LED lighting projects are complete, it will result in an additional $250,000 in savings in less than a year.

Starwood may be cuttings costs and carbon emissions with foundational changes, but Berkshire East Mountain Resort in Charlemont, Mass., is seeing big results in having an on-site solar farm and wind turbine. The rotating solar panels, which track the sun throughout the day, were installed in 2012, allowing the ski resort to run entirely off renewable energy. By making this move, the resort was able to lock in a price for electricity and avoid rising costs.

“Not only is it extremely logical, from a business standpoint, to have renewable wind and solar, but it has also helped develop great customer relationships,” explains Resort Manager Jon Schaefer. “It’s certainly boosted our business.”

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1 COMMENT

  1. As Principal Architect of one of America’s most practised hotel renovation architectural firms (AXIS Architecture + Design), I agree almost entirely with your list with one exception to your first point. Getting experts involved as early as possible is wise advice, but for the types of renovations you’ve described, a General Contractor might not be the best first choice. When it comes to significant renovations, an architectural firm can bring the complete toolkit to the job, including contracting and design. Food for thought.

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