The starting point for sustainability in the hotel industry is the goals set by owners, brands, and management companies. The objectives can be fairly specific, such as reducing waste or energy consumption by a certain percentage within a certain timeframe, shifting to eco-friendly housekeeping products, or meeting the requirements of a program such as LEED or Green Key. But when it comes to the vendor partnerships that will achieve those goals, there are many options in today’s expansive market for sustainability products, and that’s where knowledgeable procurement is essential. With manufacturers constantly making strides in the development of FF&E and other products that support sustainability, procurement officers and designers do well to stay abreast of the latest offerings.
Sustainable hotel design materials are an example of a vibrant area of R&D. “Manufacturers have a lot of opportunities to use new technologies and research that makes it easier for them to create material that is eco-friendly, easy for us to use, and beautiful,” noted Lisa Haude, senior vice president, director of interior design, LKI Architecture. She cited furniture and carpet made from recycled materials as an example: “They’ve figured out how to recycle plastic and turn it into furniture. … In one property we worked with, they used carpet made from recycled material in an exhibit hall, and you would never know [by looking at it].” Tech advancements are making the manufacturing process itself more sustainable for many products, such as furniture. AI and 3D printing, for example, have reduced waste by allowing more of the details of the final piece to be worked out prior to fabrication, Haude explained. Familiarity with these developments allows procurement to bring an understanding of what’s possible in sustainable design to their sourcing effort and thereby locate ideal products.
Cost Considerations
While in some cases sustainable products are more expensive than their non-sustainable counterparts, the ROI often ends up favoring the sustainable products. “For us, [investing in sustainability] really has to be cost neutral or provide a return because currently with the way capital funds and project funds are, we have to really be careful with what we commit to,” said Robert Carl, senior vice president-facilities & capital planning, Remington Hospitality. Low-temperature detergent is an example of a product that both enhances sustainability and delivers ROI. “We’ve partnered with our chemical companies on low-temperature washing, and we’ve seen a dramatic—actually 8-9 percent—annual savings on utilities by just making that change, and having all of our commercial laundries onsite,” Carl said. “So, there are a lot of programs that I think, initially, there was concern about the quality of the process, but we’ve found that it’s tolerable if not even better. And on the plus side, it extends the life of linen products by washing in a low-temp situation with the correct chemical formulas. So, you’ve got a win-win.”
The energy and water savings resulting from processes like low-temperature washing and equipment such as smart lighting and low-flow toilets are well appreciated, but less obvious is the ROI of many sustainable design materials. “You might be paying a premium for the R&D and the material, but you’re ending up with a product that lasts longer or has other benefits to it. In other instances, it’s cost neutral,” explained Haude. As an example, she noted that the cost of wool carpeting has come down considerably, and that material—or even a wool/nylon blend—will “far outlast” nylon carpeting while being more sustainable. “From a longevity standpoint, the look and color of the carpet is going to appear outdated faster than the product will be worn out,” she explained. Another example of durability and sustainability is silicone: “Through R&D they’ve figured out how to make it into a fabric,” said Haude. “So, it works just like a vinyl or leather on an upholstery piece. It’s beautiful and sustainable.”
Vetting Process
With new sustainability products and new companies hitting the market, procurement must take into account not only the product’s features but also the dependability of the supplier. Indeed, the supplier relationship itself must be sustainable along with their products. “The last thing we want to do is roll out a program that not only is costing an owner more, but also is not truly sustainable, from the standpoint of [a company] that is going to be around for a while,” said Carl. “So, we need to make sure that the organization is well-enough financed and backed up that they’ll be in business to service their products over their lifecycle,” he explained, mentioning the functionality and service issues with low-flow toilets back in the early ‘90s as an example. “Owners count on us to do that due diligence.”
Similarly, clients count on LKI Architecture to vet its suppliers. “We ask a lot of questions, such as where do you fabricate it? Show me pictures of how it’s fabricated or do a lunch-and-learn where you can show us your factory from a video standpoint, or we can even tour the space,” Haude said. Also part of her vetting process is checking for green product certifications, such as Certified Carbon Neutral, Better Cotton, and Forest Stewardship Council. “Just like how we see Energy Star certificates everywhere, showing that the appliance you’re purchasing is energy efficient, we’re starting to see [green certifications] now appearing on anything you would put in your home or hotel,” she said.
In addition to their partner design company, hoteliers can rely on several other resources to help confirm the sustainability of their suppliers’ operations and the integrity of the products. “We depend heavily on our brand partners, because they have sustainability goals, just like we do,” said Carl. “The major brands have an opportunity to do a lot more testing and vetting than we do. So, we always utilize them as a resource. Also, the Green Hotel Association is a great group that provides a lot of good information for our industry. There’s also a lot of information from the EPA that you can access, and through many utility companies. And some of the major manufacturers that we utilize for mechanical equipment will actually do a lot of the legwork, vetting, and research for you. So, we try and utilize that as much as possible. In addition, we work closely and are a big supporter of the AHLA, and the initiatives that they have rolled out [e.g., Green Key Global] have been very helpful to us.”
Meeting Expectations
Responsible sourcing is well past the trend stage and has become a best practice for most hoteliers. “Today, it’s more of an essential expectation. With all our clients, the idea to use those eco-friendly products is pretty much a standard practice and expected, as well as something we expect from our manufacturers,” Haude said. “They have all embraced it; they provide it. They’re very transparent with what they’re using, and how they use materials, how they source materials, and how they incorporate it into their products.”
With helpful information from suppliers themselves, along with guidance from brands, designers, and various hotel and environmental association resources, hotel owners and operators are well positioned to procure the sustainable products that fit their needs—even in a marketplace that is increasingly varied and complex. The ROI not only comes in the form of savings across product lifecycles, but also an enhanced reputation among eco-conscious guests, investors, and employees.
Sourcing Locally: An Approach That Furthers ESG Goals and Guest Engagement
For Ben Rafter, CEO, Springboard Hospitality, procuring local products supports both the company’s ESG agenda and the indigenous feel of Springboard’s properties. “We largely run independent hotels that are highly customized to their sense of place, and a lot of them are also leisure hotels. So, when someone goes to a place like Hawaii or Jackson Hole, they tend to want to experience those destinations more than a typical business traveler would, and that includes a much heavier emphasis, in our opinion, on wanting local products,” he explained. When possible, Springboard conveys the local origin of the products to guests, e.g., with tags on in-room amenities. “Almost always, these products are going to cost more,” he said. “But we think we get a return based on more loyal guests or guests willing to pay a little bit more.”
One challenge to this approach is that a sufficient quantity of a certain type of product is sometimes not available from local suppliers. “The classic case is going to be something simple like bathroom amenities,” said Rafter. “Local vendors that we want to work with might not have 4,000 bottles of shampoo, for example. So, we vet the vendors first, and if they’re not going to be able to produce enough, we shake hands and say, ‘As you continue to ramp up your capabilities, let’s talk’ and we’ll go find another vendor.”
Springboard’s new partnership with Procure Impact, a B2B marketplace and procurement partner, has facilitated its local sourcing efforts. Providing connections to a range of products from social enterprises dedicated to empowering individuals facing barriers to work, the partnership supports Springboard’s pledge of creating 5,000 hours of work for vulnerable communities. Whether it’s in-room coffee and snacks, furniture, or wellness products like candles and bath salts, Procure Impact vets the enterprises to ensure they can produce the quality and quantity that meets a hotelier’s needs.
While the benefit of local sourcing is more social than environmental, “we have found a correlation to sustainability,” Rafter said. “If we’re working with a local food provider in Los Angeles, we’re not shipping product on a plane or boat.
