How Can Hotels Reduce Energy Consumption?
Running a hotel means balancing guest expectations with operating costs. From heating and hot water to lighting, air conditioning and commercial kitchens, hotels use significant amounts of electricity and gas every day. As energy prices continue to change, reducing hotel energy consumption has become an important way to improve profitability without affecting the guest experience.
While many hotels focus on reducing day-to-day energy usage, it's equally important to review your business energy contract regularly. Lower energy consumption combined with a competitive business energy tariff can help reduce hotel energy bills and provide greater certainty over future costs.
In this guide, the business energy specialists at Business Utility Hub explain how hotels can reduce energy consumption, where the biggest opportunities for savings are and why reviewing your energy contract before renewal should form part of your overall energy management strategy.
Why hotels use so much energy
The hospitality industry is one of the UK's most energy-intensive sectors. Unlike many businesses, hotels operate throughout the day and night, providing comfortable accommodation, catering and facilities for guests around the clock.
Hotel energy is used across almost every part of the building, including:
- Heating guest rooms and communal areas.
- Producing hot water for bathrooms, kitchens and laundry.
- Running air conditioning and ventilation systems.
- Lighting bedrooms, corridors, restaurants and reception areas.
- Operating commercial kitchens and refrigeration.
- Washing bedding and towels.
- Powering lifts, leisure facilities and business spaces.
For many hotels, heating and hot water account for the largest share of overall energy use. Electricity consumption can also increase significantly during warmer months when air conditioning systems are working harder.
Because every hotel operates differently, understanding where energy is being used is the first step towards reducing costs.
How much energy does a hotel use?
There is no standard answer to how much energy a hotel uses. A small hotel with a limited number of guest rooms will naturally consume less electricity and gas than a large hotel offering restaurants, conference facilities, spas and leisure centres.
Exactly how much energy your business uses depends on several factors, including:
- The number of guest rooms.
- Occupancy levels throughout the year.
- Opening hours.
- Heating and cooling requirements.
- Air conditioning systems.
- Commercial kitchens and catering facilities.
- Laundry operations.
- Swimming pools, gyms and spa facilities.
- The age and condition of the building.
- Weather conditions.
- The efficiency of equipment throughout the site.
Your hotel's energy consumption is also influenced by how efficiently these systems operate. Older heating systems, inefficient lighting and poorly maintained HVAC systems can all increase energy usage over time.
It's also important to remember that energy costs are not determined by energy use alone. Your unit rates, standing charges, contract length and renewal timing all affect your overall energy bills. Two hotels with similar energy consumption may still receive very different electricity and gas bills because they are on different business energy contracts.
Review your hotel's energy usage
Before investing in new equipment or making operational changes, it's worth understanding how your hotel currently uses energy.
Reviewing your energy bills and usage data gives you a clearer picture of where electricity and gas are being consumed. This can help identify opportunities to reduce energy consumption without affecting guest comfort.
Start by checking:
- Annual electricity and gas usage in kilowatt-hours (kWh).
- Seasonal changes in energy consumption.
- Periods of unusually high demand.
- Areas with consistently high electricity use.
- Whether your bills are based on actual or estimated readings.
Hotels with smart meters or half-hourly meters can also benefit from real-time monitoring. Reviewing this data helps identify unnecessary energy use outside busy periods and highlights where improvements can deliver the greatest savings.
Regular energy audits are another useful way to identify energy waste. They can highlight equipment that is using more electricity than expected, areas where heating is being lost and opportunities to improve overall energy management.
Reduce heating and hot water costs
Heating and hot water are often responsible for the largest proportion of hotel energy consumption. Even relatively small improvements can reduce energy costs while maintaining a comfortable environment for guests.
Review heating controls
Heating should reflect how different parts of the hotel are used throughout the day.
For example, guest rooms, restaurants, meeting rooms and back-of-house areas may all require different heating schedules. Smart thermostats allow temperatures to be adjusted automatically based on occupancy, helping reduce unnecessary heating without compromising guest comfort.
Heating controls should also be reviewed seasonally. Adjusting settings as weather conditions change can help reduce energy consumption throughout the year.
Maintain heating and HVAC systems
Regular servicing helps heating and HVAC systems operate more efficiently.
Maintenance should include:
- Cleaning filters.
- Checking boilers.
- Inspecting ventilation systems.
- Servicing air conditioning units.
- Testing heating controls.
Poorly maintained HVAC systems often work harder to achieve the same temperatures, increasing electricity consumption and operating costs.
Improve insulation
Heat loss can increase hotel energy bills considerably, particularly during colder months.
Hotels should review:
- Roof insulation.
- Pipe insulation.
- Doors and windows.
- Draughts around entrances.
- Plant rooms and service areas.
Reducing heat loss allows heating systems to work more efficiently while maintaining comfortable temperatures throughout the building.
Review hot water demand
Hotels require large volumes of hot water every day for guest bathrooms, kitchens, laundry facilities and housekeeping.
Reviewing how and when hot water is used can help reduce energy use without affecting service standards.
Practical improvements include:
- Insulating hot water pipes.
- Maintaining boilers and cylinders.
- Repairing leaking taps.
- Replacing older equipment with energy-efficient models where appropriate.
- Monitoring hot water demand across different areas of the hotel.
- Setting water heaters to 60°C, which can save energy while meeting health standards.
Even small improvements to heating and hot water systems can produce noticeable savings over the lifetime of a business energy contract.
Reduce electricity use in guest rooms
Guest rooms account for a significant share of hotel energy consumption. Although each room may only use a relatively small amount of electricity, the combined demand across an entire hotel can have a noticeable impact on energy costs.
Simple improvements can help reduce electricity use without affecting guest comfort.
Consider:
- Replacing traditional bulbs with LED lighting throughout bedrooms and corridors. LED bulbs can cut energy use by up to 75%, making this one of the most practical upgrades for hotels.
- Installing occupancy sensors so lights switch off automatically when rooms are unoccupied. This helps reduce energy waste in bedrooms, bathrooms, corridors and back-of-house areas where lighting may otherwise be left on for long periods.
- Using key card systems to control lighting and power when guests leave their room. These systems can help limit unnecessary electricity use while still allowing hotels to provide guests with a comfortable room when occupied.
- Replacing older televisions, minibars and kettles with energy efficient models. Upgrading equipment over time can reduce electricity demand across guest rooms, especially in larger hotels with high occupancy.
- Setting air conditioning units within a comfortable temperature range rather than cooling rooms unnecessarily. Sensible temperature controls can reduce energy usage while maintaining guest comfort during warmer periods.
These improvements can help hotels save energy while maintaining the standard guests expect.
Improve energy management in kitchens and laundry
Commercial kitchens and laundry facilities are among the busiest areas of most hotels. They also contain some of the most energy-intensive equipment on site.
Improving energy management in these areas can reduce costs without affecting daily operations.
Review opportunities such as:
- Replacing ageing catering equipment with more energy-efficient alternatives.
- Servicing refrigeration units to maintain efficient performance.
- Running dishwashers and washing machines with full loads where practical.
- Switching off equipment when it is not required.
- Scheduling maintenance to keep machinery running efficiently.
Hotels should also review whether replacing appliances nearing the end of their lifespan could reduce electricity and gas consumption over the longer term.
These operational changes work best when supported by a clear energy procurement strategy. By understanding how kitchens and laundry facilities affect your usage, hotels can compare business energy contracts more accurately and choose tariffs that better reflect their day-to-day demand.
Consider hotel energy management systems
Technology can help hotels monitor and manage energy more effectively.
Hotel energy management systems collect data from across the building and provide greater visibility of how electricity and gas are being used. This allows hotel managers to identify areas where energy consumption can be reduced and monitor the impact of operational changes.
Depending on the size of the property, hotel energy management systems may include:
- Building management systems.
- Smart thermostats.
- Lighting controls.
- Occupancy sensors.
- Real-time monitoring of electricity and gas usage.
- Automated HVAC controls.
A building management system can coordinate heating, cooling, lighting and ventilation throughout the hotel, helping reduce unnecessary energy use while maintaining guest comfort.
Some energy management systems also support predictive maintenance by identifying equipment that is operating outside expected performance levels. Addressing maintenance issues early can reduce energy waste and help prevent unexpected equipment failures.
Simple ways hotels can reduce energy consumption every day
Many improvements require little investment but can still help reduce energy consumption across the hotel.
Practical actions include:
- Switching to LED lighting throughout the building.
- Reviewing air conditioning settings during warmer weather.
- Cleaning filters in HVAC systems regularly.
- Making the most of natural daylight where possible.
- Turning off non-essential equipment outside operating hours.
- Checking refrigeration seals and temperatures.
- Encouraging housekeeping teams to report maintenance issues promptly.
- Monitoring electricity use during quieter periods.
Hotels that regularly review energy usage are often better placed to identify opportunities to reduce costs before they become long-term issues.
Balance energy savings with guest comfort
Reducing hotel energy consumption should never compromise the guest experience.
Guests expect comfortable bedrooms, reliable hot water, effective air conditioning and well-lit communal areas throughout their stay. The aim is to reduce unnecessary energy use rather than reduce the quality of service.
Modern energy management systems make this easier by allowing hotels to control temperatures, lighting and ventilation based on occupancy while maintaining consistent standards across the property.
When combined with regular maintenance and efficient equipment, these measures help hotels reduce energy consumption without sacrificing guest comfort.
Why your business energy contract matters
Reducing energy usage is only one part of controlling hotel energy costs.
Your business gas and electricity contract has a direct impact on what you pay. Unit rates, standing charges, contract length and renewal timing all influence your overall energy bills.
Hotels that do not review their energy contracts regularly may find themselves:
- Paying out-of-contract or deemed rates.
- Missing more competitive business energy deals.
- Paying higher standing charges than necessary.
- Remaining on contracts that no longer reflect current energy usage.
Comparing business energy suppliers before your renewal date allows you to review your options while there is still time to switch.
It also provides an opportunity to make sure your contract reflects how your hotel currently operates rather than how it operated when the agreement was first signed.
How Business Utility Hub can help hotels reduce energy costs
Reducing energy consumption and reviewing your business energy contract work best together.
Business Utility Hub helps hotels compare business gas and electricity contracts based on their energy usage, operating hours and renewal dates. We monitor business energy prices every day, compare trusted UK suppliers and explain your options clearly, helping you make informed decisions before signing a new energy contract.
Whether you manage a boutique hotel, a large hotel or multiple hospitality sites, we'll help you review your current energy position and identify suitable energy contracts for your business.
When you work with Business Utility Hub, you'll benefit from:
- Daily monitoring of business energy prices.
- Transparent supplier comparison.
- Dedicated account managers.
- No obligation to switch.
- Full switching management from start to finish.
- Transparent commission, disclosed on request.
- Calls answered within three rings.
Review your hotel energy contract before renewal
If your current contract is approaching renewal, now is the time to review your options.
Comparing business energy prices before your renewal date could help reduce future energy costs and provide greater certainty over your hotel's electricity and gas bills.
Review your current hotel energy contract before you sign elsewhere.
Call 0800 781 2700 or email savings@businessutilityhub.co.uk to speak to one of our business energy specialists.
