Energy Efficiency in Hotels

Ronald R.Diab – rdiab@eegroup.info

Managing Director

Quick Bio

In the Energy Services business since 1996 Our Only business Have been working in the ESCO business

concept since our inception Expanded regionally : subsidiaries and sister

companies in Qatar, Syria, Morocco, Cyprus , and Greece

Projects undertaken in more than 17 countries in EMEA and Asia Pacific.

Quick Bio

Performed more than 550 energy audits – 200 in the hospitality sector

Implemented more than 200 EE projects

Complete Energy Services Lifecycle from the consulting works to the implementation of efficiency measures

Quick Bio : ClientsPartial Hospitality List

CSR , Green initiatives, Climate Change and cost optimization programs are all pushing energy management at the forefront of all sectors

FACTS

Sustainable Development (SD) v/s Social Networking (SN)

Growing Trends in Green Hotels

• An average hotel releases between 160 and 200 Kg of CO2 per m2 of room floor area per year• Water consumption per guest per night is between

170 L and 440 L in the average 5 stars Hotel• On average, Hotels produce 1Kg of waste per guest

per night

Environmental Impacts of Hotels

Excluding labor, energy is typically the highest cost that hoteliers face and is the single fastest-growing operating cost in the hospitality industry

FACT for Hotels

Travelers are increasingly considering sustainability in making travel plans.

Business travelers increasingly consider a hotel’s sustainability in making their selections, and 40 percent of those surveyed are willing to pay a premium for it.

Deloitte, “Risks and Rewards for Building Sustainable Hotels,”

Does Green Matter to Guests?

Reducing energy costs while continuing to meet the diverse needs of guests, owners and corporate requirements is challenging but by no means impossible.

Energy Efficiency in Hotels: A possible balancing Act

Energy efficiency provides hotel owners and operators cost savings that benefit the bottom line.

Efficiency also improves the service of capital equipment, enhances guest comfort and demonstrates a commitment to climate stewardship.

Environmental friendliness can be a market strength for a hotel brand, which can lead to a better reputation among consumers.

Benefits of Energy Efficiency in Hotels

Sustainability in Hotels WHY?

To improve brand image, build trust, and build reputation

To save money To increase employee/guests satisfaction,

engagement, and retention To foster a good public image To manage risk and regulatory compliance To improve operations To demonstrate corporate social responsibility

Energy Services Lifecycle

What’s in it for hotels from third party firms ?

Low-cost energy efficiency opportunities exist in all hotels.

A typical hotel can save 5 to more than 30% with measures having payback periods of less than five years.

EE opportunities

Opportunities can be grouped into two broad categories: 1.Low-cost/no-cost measures that involve changes in operating or maintenance practices;2.Measures that involve capital investments in new equipment

• “Efficiency retrofits“: existing installations replaced with energy efficient components• Modification of existing installations

EE opportunities

Energy Audits are like photography

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In fact, a lot of skills and experience are needed to ensure that recommendations are cost effective, technically feasible and result in significant energy savings

• Everybody thinks they can do it• Tools are cheap and available• Producing a product is easy• But results may vary…

Energy Audits components

One converged EM services on :

Pumps & Motors LightingEnergy Supply/Electrical distribution

BoilersFans/AHUs Cooling &

Refrigeration.

Laundry

Kitchen

Beyond the technical aspects:Employee Engagement

Typically, managers are focused on their duties and struggle to cope with SD

In a hotel operation ALL departments are involved in energy related operations

Engineering department is only one chain Alignment is needed amongst all departments Full transparency on SD& results top to bottom

Beyond the technical aspects:Employee Engagement

Case Study :

Energy Audits completed for the 7 properties of Sun Resorts Group by the end of 2013

Energy Audits at SR

EE opportunities in SRG

Total annual utilities > $10M

Total Potential Annual Savings for all properties : $3M (about 30%) with a CAPEX of $4.28M ($1.3 M on thermal energy and $1.7 on electrical energy)

Low-cost (no CAPEX) energy efficiency opportunities > $240K per year

Phase II : 2014 EEG Action Plan

EEG will : Undertake a workshop for all managers of

the group on EE Train all director of engineering &

assistants on EE and Energy Audits results Lead all the chosen EEMs implementation Unify utilities reporting format Carbon footprint reporting at hotel and

group levels Setup the Energy Committee in every hotel Remote Energy Management

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Questions …

THANK YOU