Sustainability In Hotels
Sustainability in HotelsOpportunities and Trends Shaping the Future of Hospitality
About the Urban Land InstituteThe Urban Land Institute (ULI) is a global, member-driven organization comprising more than 44,000 real estate and urbandevelopment professionals dedicated to advancing the Institute’s mission of providing leadership in the responsible use of landand in creating and sustaining thriving communities worldwide.ULI’s interdisciplinary membership represents all aspects of the industry, including developers, property owners, investors,architects, urban planners, public officials, real estate brokers, appraisers, attorneys, engineers, financiers, and academics.Established in 1936, the Institute has a presence in the Americas, Europe, and Asia Pacific regions, with members in 80 countries.The extraordinary impact that ULI makes on land use decision making is based on its members sharing expertise on a varietyof factors affecting the built environment, including urbanization, demographic and population changes, new economic drivers,technology advancements, and environmental concerns.About the ULI Greenprint Center for Building PerformanceThe ULI Greenprint Center for Building Performance is a worldwide alliance of leading real estate owners, investors, and strategicpartners committed to improving the environmental performance of the global real estate industry. Through measurement,benchmarking, knowledge sharing, and implementation of best practices, Greenprint and its members strive to reduce greenhousegas emissions by 50 percent by 2030. On an ongoing basis, Greenprint also endeavors to demonstrate the correlation betweenenvironmental performance and enhanced property value. Learn more at uli.org/greenprint.COVER PHOTO: The Westin O’Hare in Chicago, Illinois. (Clarion Partners LLC) 2019 by the Urban Land Institute2001 L Street, NW Suite 200 Washington, DC 20036-4948All rights reserved. Reproduction or use of the whole or any part of the contentswithout written permission of the copyright holder is prohibited.Urban Land InstituteiiSustainability in Hotels
About the Cornell Hotel Sustainability Benchmarking IndexThe Cornell Hotel Sustainability Benchmarking (CHSB) index is a collaborative initiative aimed at developing hotelindustry–specific benchmarks for energy, water use, and carbon emissions. ULI Greenprint has partnered with CHSBsince 2016, for volume 7 of the annual Greenprint Performance Report and every subsequent annual performance reportsince. This partnership allows Greenprint to expand the hotel benchmarks provided in annual performance reports andprovide a more accurate view of hotel industry performance.ULI Report TeamMonika HennManager, Greenprint Center forBuilding PerformanceMarta SchantzSenior Vice President, GreenprintCenter for Building PerformanceBilly GraysonExecutive Director, Center forSustainability and EconomicPerformanceJames A. MulliganSenior EditorLaura Glassman,Publications Professionals LLCManuscript EditorBrandon WeilArt DirectorThomas CameronDesignerCraig ChapmanSenior Director, PublishingOperationsUrban Land InstituteiiiSustainability in Hotels
AcknowledgmentsULI Greenprint would like to thank the following individuals for sharing their information and insights for this report:Toni AlexanderIntercommunications Inc.John HardyThe John Hardy GroupYalmaz SiddiquiMGM Resorts InternationalAlinio AzevedoThe Little Nell Hotel GroupMason HarrisonSonderAmanda SmithCanadian Urban InstituteAndy BushMorgan Creek VenturesJim LandauMetLifeWill SneedThe John Hardy GroupSophie CarruthLaSalle Investment ManagementCharles LathemClarion Partners LLCJerry SpeltzBarings Real Estate AdvisersDeep ChakrabortyENACT Systems Inc.Matthew LobachHersha Hospitality TrustJim TellingEast West PartnersMichael ChangHost Hotels & Resorts Inc.Warren MarrPricewaterhouseCoopersBennett ThomasHersha Hospitality TrustCraig CohnVail HealthRocky MarzzarellaThe John Hardy GroupHannah WalkerSinclair HoldingsJim DeFranciaLowe Real EstateSuzanne MellenHVS Global Hospitality ServicesBill WebsterMetLifeDustin EgginkRATIO ArchitectsEric RicaurteGreenviewCindy ZhuU.S. Department of EnergySean GaffneyThe John Hardy GroupDan RubenBoston Green TourismUrban Land InstituteivSustainability in Hotels
CONTENTS2IntroductionULI Global Chief ExecutiveOfficer Ed Walter3Executive Summary4Hotel Industry Primer11Sustainability OpportunitiesDriving Value25Why Aren’t Hotels TakingAdvantage ofThese Opportunities?27Trends Shaping theFuture of Hospitality
IntroductionULI Global Chief Executive Officer Ed WalterI’m pleased to present Sustainability in Hotels: Opportunities and Trends Shapingthe Future of Hospitality, a new addition to ULI’s overall body of work promoting thecreation of vibrant, sustainable communities worldwide.W. Edward (Ed) WalterGlobal Chief Executive OfficerUrban Land InstituteAs Sustainability in Hotels demonstrates, embracing resource-efficient and resilientdevelopment practices is good for business as well as communities. Sustainabledesign is what the market wants—younger and older generations place a high priorityon green and sustainable development in how and where they live, work, and play.It’s also what cities want and need, as they seek to become more resilient, competitive,and livable. This strong demand is compelling ULI to stay at the forefront of thismovement, demonstrating the positive economic and environmental impacts ofsustainable community building.Through our Center for Sustainability and Economic Performance, ULI has severalprograms in place to advance our work, including the Greenprint Center for BuildingPerformance, which is a global alliance of leading real estate owners, investors,and strategic partners committed to improving the environmental performance ofthe real estate industry. Greenprint produced this report, which explores how thehospitality sector is incorporating sustainable building practices. And while thehospitality sector tends to receive less attention regarding sustainability thanmost others, Sustainability in Hotels shows that sustainable practices have becomeessential to remaining competitive in this highly competitive sector of the industry.As the former chief executive officer of Host Hotels and Resorts, I can attest tothis. Sustainability in hotel development is not a short-term trend; it is a lasting change.From small boutique hotels to large resorts, Sustainability in Hotels provides animpressive collection of case studies, such as Host’s energy conservation program,as well as insights from 25 leading hotel owners, developers, and investors,including members of ULI’s Hotel Development Product Council. This publicationis a fine example of lessons learned and best practices that can inform and bereplicated in other projects.Sustainability—in hotels and all areas of real estate—has staying power becauseit’s about doing well by doing good. Clearly, ULI members are leading this movementwith work that is making a meaningful impact in communities worldwide.Urban Land Institute2Introduction from ULI Global CEO Ed Walter
Executive SummaryThis report assesses the state of sustainability in the hotelsector, identifying best practices in energy efficiency, waterconservation, and waste reduction; highlighting industrytrends to watch; and finding solutions for obstacles tosustainability, with a goal of accelerating the market’s movetoward a more sustainable and impactful future. Opportunities exist for any hotel to improve efficiencyand sustainability while also achieving significant financialbenefits—and this report lays out some ways to do it,including in-room lighting and HVAC retrofits, renewableenergy installations, replacement of water fixtures, andon-site composting.“ The hotel industry faces a number of unique challengesin executing on sustainability improvements, includinga lack of utility data, complicated ownership models andstructures, and concerns about improvements disruptingthe guest experience.The conversation around climate change andchanging hotel guest demographics helped theglobal hotel industry recognize that sustainabilityis a smart business decision that can elevate theguest experience and strengthen financial returns. Upcoming trends for the hotel industry highlighted inthe report showcase strategies that leading owners areimplementing to gain a competitive edge and future-prooftheir businesses, including modular construction,sustainable materials selection, guest room technology,and an increased focus on health and wellness.”— Toni AlexanderPresident and Creative Director,InterCommunications, and Chair, ULI HotelDevelopment CouncilHERSHA HOSPITALITY TRUST Of commercial buildings, hotels are among the highestper square foot energy and water users. Hotel carbonemissions vary by geography, with hotels in Asia generallyproducing more emissions per occupied room thanhotels in Europe and the Americas, and across all countries,full-service hotels produce more carbon emissions byoccupied room in comparison to limited-service hotels.However, opportunities for improvement are availableacross all hotel types and can add substantial value to ahotel’s bottom line. Hotels pay utilities directly and directly recoup all savingsfrom efficiency improvements, resulting in one of thestrongest business cases for sustainability in the commercialreal estate industry. In addition, guest satisfaction,city policies (both regulations and incentives), internalsustainability goals, and increasing investor interestdrive sustainability improvements in hotels. Hotels that implement sustainability initiatives seeimmediate returns, but much of the hotel industry isleaving valuable operational and technical opportunitiesfor savings and efficiency on the table. For example,MetLife has implemented a direct digital control (DDC)energy management system project, yielding an 18.5percent reduction in energy costs ( 238,733) in thefirst year, and Host Hotels & Resorts has implementeda high-efficiency boiler, saving New York City hotel 2.2 million a year.Urban Land InstituteHersha Hospitality Trust’s Ambrose Hotel in Santa Monica, California, was thefirst hotel in the nation to receive the U.S. Green Building Council’s LEED-EBSilver certification.3Executive Summary
Hotel Industry Primerinstead of single-asset purchases. Foreign investment isalso strong in the hotel sector, with cross-border investmentincreasing 18 percent to 4.5 billion from 2017 to 2018.8The global hotel industry comprises about 184,000 hotelscontaining almost 17 million rooms, a number that hasincreased 17.7 percent from 2008 to 2018.1 According to theNational Association of Real Estate Investment Trusts,in the United States the hospitality sector accounts for about 1.5 trillion of the estimated 15 trillion in total commercialreal estate. Although the total value of this sector is less thanoffice, retail, multifamily, health care, and other specialtyproperty types, the value per square foot is the secondhighest of all property types, behind only the health caresector. ULI’s annual report Emerging Trends in Real Estate 2019 classifies hotels as a well-performing sector withdevelopment prospects expected to increase, even as mostother major commercial property types anticipate a decline.In particular, midscale hotels were identified as the subtypewith the highest investment and development prospects.2Hotels have several possible ownership structures, butgenerally they are owned by an asset manager or REIT andoperated by a hotel brand. The structure and role of hotelbrands are also changing; top hotel brands control less thanone-third of global hotel rooms in 2019, and industryexperts expect to see a continued focus on the acquisitionof hotels offering unique experiences.9 Hotel brands lookingto capitalize on experiential travel are even introducing newbrands to meet niche segments of the market, like Moxyhotels, Marriott International’s affordable, millennial-focused,and experience-driven brand. Also driving growth for brandsis increased franchising, with franchised rooms at three U.S.hotel chains increasing 40 percent from 2014 to 2018.10State of the Hospitality MarketWith a strong U.S. economy, consumers looking to spendmoney on travel have driven continued increases in hotelbookings and gross revenues with hotel gross bookingstotaling 185 billion in 2017.3 In 2019, demand is expectedto outpace supply, with average daily rates (ADR) andrevenue per available room (RevPAR) both expected toincrease 2.4 percent from the previous year. Even withthese strong indicators, the number of new hotel roomsunder construction is decreasing, as challenges to newdevelopment increase, including rising material costs, laborshortages, and concerns about a slowing real estate market.4“Increasing tourism in both developed anddeveloping markets is keeping the hotels sector oninvestors’ radar screens.SHUTTERSTOCK.COMThe outlook for international hotels is also positive, withstrong demand from investors in Asia as the region looksto developing tourism markets and sees continued growthin tourism from China’s middle class.5 In Europe, the hotelsector is still seen as a generally good investment anddevelopment prospect.6From 2014 to 2019, about 70 percent of global hotelinvestments were made by general investors with diverseportfolios.7 Private equity investments and real estateinvestment trusts (REITs) constituted the majority of 2018transactions, with a notable increase in portfolio acquisitionsUrban Land Institute”— Emerging Trends in Real Estate Asia Pacific 2019Consumer interest in travel continues to rise, with hotels seeing increasesin average daily rates and revenue per available room.4Hotel Industry Primer
The Role and Breadth ofHotel SustainabilityHotels have also taken a leading role in mitigating the socialimpacts of the larger tourism and hospitality industry bydeveloping policies around forced labor and human traffickingfor their properties and the larger supply chain. Becausehotels are sometimes an unwitting location for these activities,hotel brands are developing awareness training for employeesand guests, creating public awareness campaigns, and providingservices to victims of these crimes.The United Nations World Tourism Organization estimatesthat hotels account for about 1 percent of global emissions,a number that is only expected to increase as the industrycontinues to experience growth and demand. To stay within the2 degree Celsius threshold agreed upon by the Paris ClimateAccord, research from the International Tourism Partnershipindicates that the hospitality industry will need to reduceemissions 66 percent by 2030 and 90 percent by 2050.11Many in the industry noted that these sustainability programshave not come without some pushback from hotel workers,who for example see linen reuse programs that reduce energyand water costs as a path toward job uncertainty—becausehotels cannot predict the amount of cleaning work to be doneeach day—or even job loss as automation across allindustries continues. Recently, a few hotel chains have evenseen hotel worker strikes to protest this uncertainty andother grievances. With hotels already concerned about risinglabor costs, ensuring strong hotel workforce developmentwill need to be a key consideration going forward.Like other asset classes, hotels interested in improving theirefficiency can start with the “low-hanging fruit” measuresthat reduce operating costs. Opportunities to improve energy,water, and waste efficiency are widely available for hotelsof all types, through operational changes such as utilitybenchmarking and temperature setpoint adjustments, aswell as technical updates like high-efficiency water fixturesor LED lighting installations. Many hotels have also adoptedinitiatives that allow guests to make a sustainable choiceduring their stay; travelers around the world can now forgodaily towel and bed linen changes, thereby reducing energyand water used for laundry in exchange for brand points.The Business Case forHotel SustainabilityFurther, some hotels invest in larger capital projects toachieve even greater energy and water savings. Investmentsin high-efficiency energy management systems, HVACretrofits, or on-site renewable energy require longer projectplanning and more overall effort. Achieving projects of thismagnitude requires strong collaboration between owners andoperators but can pay long-term dividends for hotels in utilitysavings and guest comfort. For specific project profiles onlarge capital projects, complete with energy and cost savings,see the “Technical Best Practices” section of this report.As for all other commercial real estate property types, thebiggest driver of sustainability initiatives in the hotel sector isthe potential to improve an asset’s net operating income.Hotels are a unique asset in that they reap all utility savingsfrom sustainability projects directly to their bottom line,without having to share those savings with tenants. To ensurehotel operators are also committed to efficiency, someowners pay out a percentage of total savings from an operator’sefficiency project as an incentive.However, sustainability in the hotel sector is about morethan just energy and water efficiency: the focus on guesthealth and wellness has increased across all hotel types.Guest interest in local experiences has led hotels tocreate stronger ties to the community by offering localrecommendations for restaurants or by hosting communityevents. For resorts, protecting the surrounding naturalenvironment and biodiversity is key to placemaking andproviding a high-quality guest experience.“Urban Land InstituteSustainability efforts, both in construction andoperations, speak to the character and developmentquality of a hotel property, and a responsibledeveloper recognizes both the need and the benefitsthat come with going green.”— Jim DeFranciaPrincipal, Lowe Real Estate5Hotel Industry Primer
Additional drivers helping hotel owners recognize the valueof sustainability and motivating them to take action includethe following: Incentives: Many U.S. cities have developed incentivesfor real estate to “go green” that also apply to hotelproperties. In Nashville, Tennessee, developments thatachieve Leadership in Energy and Environmental Design(LEED) certification (or another green certification) inthe central business district can obtain a density bonusthat scales with the stringency of the certification. InNevada, casinos and hotels were already starting to seethe savings from energy and water efficiency measures,and the addition of a property tax abatement for LEED- orGreen Globes–certified properties led Nevada to rank sixthin per capita LEED space in 2017; owners in the area continueto look for new opportunities in sustainability, movingon to renewable energy projects and other innovativetechnologies to continually improve their efficiency.Meeting changing guest expectations: According to a surveyof 72,000 Hilton guests, around 33 percent said they preferhotels with environmental and social programs. Among guestsyounger than 25, that number jumped to 44 percent. To meetguest expectations about sustainability and attract youngerand more environmentally aware customers, hotels are nowgoing beyond basic efficiency measures by incorporatingrecycled materials into guest rooms and looking into renewableenergy. Brands like 1 Hotels and Six Senses promise notjust a luxury guest experience but also a sustainable one.Complying with increasingly relevant government regulation:Because the global real estate sector accounts for about 40percent of global emissions, countries and cities with climatemitigation plans have passed both regulatory requirementsand incentives to drive the market toward increased efficiencyand reduced carbon emissions.In some cases, new developments require approval from thecommunity or city council, who can often be sensitive tochange.
Sustainability in hotel development is not a short-term trend; it is a lasting change. From small boutique hotels to large resorts, Sustainability in Hotels provides an impressive collection of
26 HOTELS July/August 2014 www.hotelsmag.com HOTELS 2013 rank 2012 rank company n ame location rooms 2013 Hotels 2013 rooms 2012 Hotels 2012 51 49 Ascott Ltd. Singapore 23,000 208 22,719 176 52 — Vienna Hotels Shenzhen, China 22,591 135 — — 53 53 B&B Hotels Brest, France 22,294 294 21,000 265 54 52 Value Place Wichita, Kansas 22,210 186 21,221 178 55 59 Grupo de
United Kingdom, Japan and Iceland. The group currently owns a total of 41 hotels and resorts with 6,111 rooms under the Berjaya Hotels & Resorts brand, ANSA Hotels & Resorts brand, joint-ventures with other luxury hospitality brands, and acquisition of Icelandair Hotels. The group al
franchised hotels. IHG hotels are encouraged and supported to build greater levels of risk maturity, beyond mandated levels of safety (Brand Safety Standards), through access to a large range of guidance, tools and training resources available to all hotels via IHG's Global Risk online learning centre. Our team of global intelligence specialists
The Hotels-50K Dataset Hotels-50K consists of 1,027,871 images from 50,000 unique hotels around the world. Each of the images in the Hotels-50K dataset includes the following metadata: (1) ho-tel name (2) geographic location, and (3) hotel chain, or Other if the hotel property is not part of a major chain.
Upscale & Luxury Hotels which have over 50% international business International leisure destinations with high FIT or GIT movement Hotels that primarily rely on transient segments Economy and midscale business hotels Suburban, small metro town properties "Drive-to" resorts Extended-stay hotels Drive-to .
1.3. Why Develop a Sustainability Plan? 5 1.4. Relationship to Other ICLEI Tools and Programs 6 1.5. Lessons Learned from NYC 7 2. Scope of a Sustainability Plan 8 2.1. Sustainability Plans vs. Climate Action Plans 8 2.2. Typical Elements of a Sustainability Plan 10 3. Overview of the Five Milestones for Sustainability 11 4. Forming a Team 16
The Office of Sustainability used UC Berkeley's inventory of sustainability courses as the baseline of which courses to map by UN SDG. The courses on the sustainability course inventory are from 2017-2018, 2018-2019 and 2019-2020 school years. UC Berkeley's sustainability course list was developed for the Sustainability, Tracking,
Alex’s parents had been killed shortly after he was born and he had been brought up by his father’s brother, Ian Rider. Earlier this year, Ian Rider had died too, supposedly in a car accident. It had been the shock of Alex’s life to discover that his uncle was actually a spy and had been killed on a mission in Cornwall. That was when MI6 had
