Increases in utilities – electricity, gas and water bills – are putting pressure on the global hotel industry. According to AHLA’s president, “America’s small business hotel owners have been struggling as rising costs, compounded by high inflation and interest rates, make it difficult to stay open and serve guests.”
Additionally, CBRE’s Hotel Horizons forecast report for the U.S. lodging industry projected room revenue to increase at an average annual rate of 2.6% through 2026. The firm notes that “given the modest forecast of revenue growth, the need to control expenses will continue.”
What can hotels do now to take on this issue? One area often overlooked is energy management systems (EMS). Now is the time to focus on this investment that can substantially cut down on wasted energy and lower operational expenditures for the property.
Let’s review these three energy management considerations when upgrading infrastructure for your hotel:
- Right-size your investment
When it comes to EMS for hotels, it is important to balance potential energy savings with low-cost, easy-to-install, and easy-to-manage systems. The most complex and advanced system may promise more savings, yet extra staff requirements may lead to a less effective system.A 2024 study from International Research Journal of Economics and Management Studies “Towards Sustainable Hospitality: Enhancing Energy Efficiency in Hotels” notes that implementing energy-saving techniques—like smart HVAC systems or renewable energy integration—requires not just capital but also operational management. The study doesn’t explicitly tie this to labor shortages but implies a need for skilled personnel to monitor and maintain these systems. Given the required resources, smaller hotels, with leaner staff, would feel this burden more acutely.
- Leverage existing infrastructure and strengthen security
Keep capital costs down for EMS by leveraging existing infrastructure and eliminate the need for redundant or proprietary networking equipment and servers on-premises. Modern hospitality EMS thermostats support Wi-Fi networking and provide a cloud native architecture to eliminate expensive and complex equipment requirements.The use of the existing network infrastructure also allows greater control over the IT security of networks. Dr. Chris Spencer, Chief Information Security Officer (CISO) for Nomadix, recently wrote that a rapid increase in IoT devices, like smart thermostats, provide new ways to target hotel networks. Managing a network based on IT standards for security and having the ability to remotely update with new security fixes is critical for hotels.
- Integrate to Property Management Systems (PMS) for optimal savings
When considering an EMS solution, most will include occupancy detection in the guest room for savings, yet intraday savings may actually only shift the electricity usage for recovery when a guest returns.A 2023 study Energy Use and its Contributors in Hotel Buildings indicate that the guest behavior is highly variable and makes short-term vacancies in a guest room less efficient. If occupancy setbacks are too aggressive, the energy requirements to restore a room to comfort may offset savings, considered “rebound energy cost.” When compared to integration with check-in and check-out through a PMS, more savings are achieved when a room is unrented for a day or more. By combining occupancy detection with check-in/check-out, a system will maximize the potential savings.
Energy Management Considerations for Hotel Properties
By addressing the two biggest line items in the budget–labor and energy, EMS solutions safeguard against continually rising energy costs, deliver a solid ROI, and limit pulling resources from already limited staff time. By focusing on the three areas we reviewed, the value will be realized pretty quickly.
Interested in learning more about Nomadix Energy Management for your property? If you are at AAHOACON next week, come by our booth #918 or schedule a meeting.
Jeff Johns is Global VP of EMS Business Development for Nomaidx, an ASSA ABLOY company. Responsible for driving global channel partner sales of Nomadix EMS and GRMS solutions for hospitality, casino, multi-tenant dwelling units, and other available markets, Johns works closely with Wi-Fi and IP enabled partners to specify product requirements and configurations for a select channel of strategic partners.