How hotels can save £millions with simple steps to save energy and water

Data from our work with The Hotel Collection shows how the UK hotel industry can save millions of pounds through energy efficiencies and water savings.

The UK hospitality group is forecasting savings of £360,000 a year from a £300,000 investment in energy and water efficiency projects in its 2,800 rooms in 21 hotels.

Widen those savings of £128 per room across the hospitality sector in the UK and the potential benefits are immense. Even if only half the country’s 600,000 guest rooms were made more efficient, the industry would save more than £38 million a year.

At the same time, the hospitality sector could contribute strongly to meeting carbon emissions reductions targets.

In our discussions with the sector, hotels usually say that they are already managing resource consumption efficiently but we usually find there is still more that can be done.

When you consider that 80% of hotel energy spending is on lighting, hot water and HVAC, it makes sense to investigate fully. In our experience, big savings are available in these areas.

Our focus with The Hotel Collection was to specify, install and measure “quick-return” projects with payback inside two years with LED lighting retrofits, water efficient solutions like eco-smart showers and tap aerators, and an intelligent heating and cooling management system at The Hinckley Island Hotel in Leicestershire.

Water saving measures

Heating and usage of water, contributes to around a tenth of utility cost in many hotels. The group spent £60,000 on eco-smart shower devices and tap aerators to reduce the flow of water.

It took just seven months to recoup that investment and save £125,500, with measured forecasts showing annual savings of £200,000.

Learn more about water savings here.

Intelligent HVAC

Over half of the energy costs ramped up each year in hotels come from heating, ventilation and air conditioning (HVAC) so this is a prime opportunity for savings.

The group’s flagship 362-bedroom Hinckley Island Hotel property was chosen for a £122,000 new smart HVAC system that will pay for itself within 15 months, then go on delivering £100,000 energy savings every year.

SaveMoneyCutCarbon will now work to roll out the solution to the group’s other hotels. More on smart HVAC here.

LED lighting retrofit

The hotel group has commissioned an LED lighting retrofit in all kitchens at a cost of £110,000, with a return on investment in less than two years. The replacement of inefficient traditional light fittings with LED panels and tubes will save £60,000 a year on energy costs.

LED lighting also offers flexibility as well as energy savings. The solution for Daventry Court Hotel was to install a system that provided bright light for conferences with warmer tones for weddings.

We also installed sensors that turn off the lights when the even room is unoccupied and the payback for the project is under two years, with the hotel reporting increased new business. More on LED lighting here.

Paul Nisbett is chief financial officer of The Hotel Collection as well as finance community chair of professional association HOSPA. He says that energy and water efficiency projects deliver lasting savings and add value to the business

Paul advises: “We are continuing to identify further ways to cut energy and water bills across our portfolio. Water and energy efficiency should be on every hotel’s agenda as it can generate substantial savings.”

SaveMoneyCutCarbon works with hotels and other businesses to identify and implement simple measures to cut bills by becoming more energy efficient. It offers a one-stop solution that includes everything from energy auditing, project management and financial modelling, to technology procurement and product installation. Learn more here