Green Hotels Lower Environmental Impact, Increases Profits

Hotels certified in the sustainable building program Leadership in Energy and Environmental Design (LEED) helps the environment and boosts revenue for the hotel, according to a new Cornell University School of Hotel Administration study.

By comparing 93 LEED certified U.S. hotels with a competitive set of non-certified hotels, the study found substantial increases in average daily rates and revenue per available room for the LEED hotels.

“The hotel industry has embraced environmental sustainability and several hotels have registered for or earned ‘green’ certification under the LEED program,” said Rohit Verma, professor at Cornell’s School of Hotel Administration. “The question was whether there is also a revenue benefit from LEED. We found that the answer is, absolutely yes.”

Developed by the United States Green Building Council, the LEED certification process gives commercial buildings a scorecard for meeting standards for location and transportation, materials and resources, and water efficiency, among others. The more points under the program, the higher the certification level.


The reviewed report, “The Impact of LEED Certification on Hotel Performance”, was co-authored by Rohit Verma and graduate students Matthew Walsman and Suresh Muthulingam.

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