HotelsMag September 2023 | Page 66

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hotel , or any business , can ’ t operate without power . Heat , light and water are all necessary to effectively function . According to the Urban Land Institute , of all commercial buildings , hotels are among the highest energy and water users per square foot . As a result , reducing hotel energy costs and embracing sustainable energy solutions is crucial .
Achieving this goal is not without its challenges , as guests consume water and electricity while occupying a guestroom or in meeting spaces . Outside conditions , such as climate and utility rates , are also out of operator ’ s controls but factor into energy expenses .
Across the four-year span within our managed hotel portfolio , which consists of around 25,000 rooms , our utility expenses report has shown an escalation from $ 6.79 per available room ( PAR ) to $ 7.58 PAR , an 11.6 % increase or an annual rise of 2.8 %. As a
Utility Expense POR & PAR 2019 - 2022
$ 20.00
$ 15.00
$
13.96
$ 11.96
$ 11.97
$ 10.00
$ 5.00
$ 0.00
$ 8.94
$ 6.79
$ 5.66
$ 6.10
$ 7.58
Utility Exp POR Utility Exp PAR
2019
$ 8.94 $ 6.79
2020
$ 13.96 $ 5.66
2021
$ 11.96 $ 6.10
2022
$ 11.97 $ 7.58
Source : hotelAVE
66 hotelsmag . com September 2023