As the upfront costs necessary to meet LEED certification in new-builds continues to decrease, hotel companies are realizing returns on investment at a faster and more significant rate.
That was one of the contributing factors propelling the launch of the Adoba Eco Hotels & Suites, where annual cost savings will range from 45%-65%, according to the group’s president and CEO James Henderson.
The full-service hotels aspire for Gold and Platinum LEED certification at an extra development cost of between 2-10%. No properties have broken ground yet, though developer interest has generated promising leads in four major markets, Henderson said.
At Portfolio Hotels & Resorts, the portfolio’s green investments usually pay themselves back within three to four years, said Graham Hershman, the management company’s COO.
president and CEO
Adoba Eco Hotels & Suites
“Concord Hospitality projects annual cost savings of between (US)$40,000 and (US)$50,000 a year in all energy sources,” said Tim Osiecki, the company’s executive VP of development and facilities.
But returns on investment aren’t limited to mere energy savings, the sources concurred.
“Some of the other ways that you improve your investment: You’re not using as harsh as chemicals, which are not as hard on the property, so a little bit less wear and tear,” Hershman added. “You get a more involved employee because if they buy into the green concept, then not only do they take pride in the hotel being green, but almost by default, that translates into the hotel being clean and the hotel being efficient.”
“Green” hotel openings usually garner a fair share of buzz as well, shortening the ramp-up period from two to three years for a typically hotel to approximately 10 months, he said. “It’s much more viral. We had excellent capture through the e-marketing process when we launched the hotel."