The leisure and hospitality industry in the United States is booming. According to the Bureau of Labor Statistics (BLS), hospitality’s private sector has more than 988,000 registered establishments across the country, and is expected to continue to grow. 

Hotels are a sizable component of that industry — with building footprints to match — and account for about 32% of all lodging facilities. 

On top of their size, hotels operate 24/7, 365 days a year, making them one of the most energy-intensive lodging businesses in the U.S., consuming 46% of energy in the building category, followed by nursing homes and assisted living facilities. 

The good news is that maximizing energy efficiency in hotels can be achieved with the right expertise and energy-saving strategies. Reducing overall energy consumption isn’t reserved for smaller buildings and businesses — hotels can strive for energy conservation, too. 

Hotel Energy Consumption and Cost 

Determining energy consumption in hotels can be tricky. There are many guest rooms to account for, each with diverse customers who use varying amounts of energy. A vast majority of hotel energy consumption is electricity, estimated at 350 billion British thermal units (Btu) per year. 

The U.S. Department of Energy (DOE) has managed to estimate the price of energy consumption for hotels. According to the DOE, the average guest room across the country incurs approximately $2,200 in energy costs annually. 

Data from the American Hotel & Lodging Association (AHLA) says there are about 5.3 million guest rooms nationwide. With some napkin math, that tells us that all hotels across the U.S. spend somewhere in the ballpark of $11.6 billion on energy just to power the guest rooms —- a figure that doesn’t consider other facilities or amenities, including attached restaurants and kitchens, bathrooms, common areas, gym facilities, and more. 

Why Optimize Hotel Energy Consumption? 

Enhanced energy efficiency and sustainability are leading benefits of running greener hotels. Cost and guest comfort are also important, which can lead to more revenue and a better reputation: 

• Cost reduction: Since energy expenses constitute a significant portion of a hotel’s operational costs, implementing energy-efficient measures can help reduce expenses. 

• Guest comfort and satisfaction: Modern travelers are increasingly eco-conscious and prefer accommodations that prioritize sustainability. Energy-efficient hotels could therefore attract more guests and boost occupancy rates for better business. 

• Enhanced energy efficiency: Enhancing energy efficiency can help reduce hotels’ carbon footprint to align with environmentally conscious goals. 

Effective Energy-Saving Strategies for Hoteliers 

Before you can identify the best areas for energy improvement at your hotel, you have to start with an energy audit. This can help you determine which aspects of your hotel make the most sense to focus on first — whether that’s optimizing HVAC or upgrading lighting. 

So, begin with an audit and other energy-saving strategies will fall into place: 

Conduct Regular Energy Audits 

Energy waste can impact your hotel’s operational efficiency, sustainability, and bottom line. If energy waste is high, your energy bill may be more expensive. Some benchmark analysis and a thorough walkthrough of your site can help your energy partner narrow down the most wasteful areas of the hotel and come up with a plan to integrate effective energy efficiency measures. 

Implement Water Conservation Measures 

When it comes to water usage, hotels must accommodate their guests. Installing low-flow showerheads, faucets, and toilets can help reduce water usage and the electricity required for water heating. 

Optimize HVAC Systems 

Regular maintenance of HVAC systems — combined with smart thermostats and utility management systems — can significantly enhance energy efficiency. Implementing advanced technologies, such as desiccant-based dehumidification systems, can further reduce energy consumption associated with air conditioning. 

Upgrade Lighting Systems 

Traditional fluorescent lighting isn’t the most sustainable option today. LED lighting that features occupancy sensors and daylight-responsive controls for common areas and guest rooms can help your hotel reduce the amount of energy it needs to keep important areas lit. 

Make Upgrades to the Hotel Building Envelope 

Hotel windows and doors are prone to cracks and crevasses that lead to heat loss, while some door systems are entirely inefficient to begin with. Making upgrades to your hotel building envelope by repairing cracks around common problem areas, upgrading to revolving doors, and improving insulation can improve efficiency. 

Build ‘Behind-the-Meter’ Solar Solutions 

Behind-the-meter solar refers to a solar energy system installed on-site at a property, where generated electricity is primarily consumed by the property itself before it enters the grid. 

Beyond being a greener form of energy, behind-the-meter solutions — such as roof, carport, and ground-mount solar panels — help reduce grid dependence during peak demand periods when rates are highest. They also align with the growing eco-consciousness of consumers, which could bring in more business. 

While solar can be expensive, an energy consultant can help you understand available tax credits, rebates, and incentives to help build your solar strategy. Some regions also offer favorable financial incentives, such as power purchase agreements (PPAs) or leasing programs that help reduce upfront costs. Your hotel could be eligible! 

Hotel Energy Usage in Different Cities 

EnerConnex helps hotels find better energy solutions in cities across the country. Let’s look at the specifics of hotel energy usage in different cities: 

Baltimore 

Hotels in Baltimore, and elsewhere in Maryland, are a good example of a wider trend of larger hotels exploring different energy options due to demand response. For example, commercial ratepayers in the Baltimore Gas and Electric “locational deliverability area” could see their bills increase as much $2,700 per year starting in 2025. EnerConnex can help Maryland hotels navigate these changes and increases. 

Boston 

Boston’s Building Emissions Reduction and Disclosure Ordinance (BERDO) sets requirements for large existing buildings to reduce their greenhouse gas emissions over time. The goal of BERDO is to help all buildings reach net-zero emissions by 2050. Buildings can achieve this with retrofits, energy efficiency improvements, fuel switching, and renewable energy generation. These improvements can have other benefits, such as increasing thermal comfort and indoor air quality, reducing outdoor air pollution, and creating new green jobs. EnerConnex can help Boston hotels comply with BERDO requirements. 

New York City 

Local Law 33 (LL33), amended by Local Law 95 (LL95), requires owners of buildings exceeding 25,000 square feet to publicly display the Building Energy Efficiency Rating. Labels include the 1-100 ENERGY STAR® score and a corresponding letter grade to give New Yorkers a snapshot of the building’s energy performance. Local Law 97 (LL97) is a NYC law that caps greenhouse gas emissions for large buildings. The law goes into effect in 2025, and reports must be submitted by May 1, 2025, and by May 1 of every year after. Greenhouse gas emissions limits will become stricter over time. Buildings will receive fines for failing to file a report and/or exceeding the emission limit. The penalty will be $268 per ton of CO2 exceeded, so there’s a strong financial impetus for NYC hotels to comply. EnerConnex can help New York hotels become more efficient and, where possible, switch to renewable energy sources. 

Philadelphia 

The Building Energy Benchmarking Policy requires large commercial and multifamily buildings to report their energy and water use every year. Section 9-3403 of the Philadelphia Code, “Building Energy Performance Policy,” requires owners of certain large buildings to conduct tune-ups of the energy and water systems, under certain terms and conditions. Violations of this Ordinance are subject to a fine of $2,000. Each day that a building owner doesn’t file a required report or take necessary action after the 13th day after the deadline constitutes a separate violation, subject to a fine of $500 for each such day. This further illustrates the benefit of more energy efficient and eco-friendly practices. 

Expert Energy Services for Hotels 

The hospitality industry can be challenging when it comes to improving energy efficiency. Hotels are subject to their guests’ preferences regarding water and electricity usage and need to be ‘always on’ without exception. 

Hoteliers can leverage expert market insights and take advantage of the latest in utility management technology to help reduce energy waste and improve hotel efficiency without compromising guest satisfaction. 

Explore EnerConnex services and get in touch to learn how we can help you manage a more energy-efficient hotel.