Where managers can reduce hotel energy costs

Most hotel energy use comes from heating, hot water, cooling, lighting and equipment. These systems are essential, but they can also create energy waste if they are not managed properly.

• Heating: heating costs can be significant for hotels, particularly during colder months. Guest expectations around comfort means rooms, corridors, lounges and dining areas need to stay at a suitable temperature.
• Hot water: this is another major demand. Showers, laundry, kitchens and cleaning all use large amounts of heated water. Low-flow shower heads, better controls and regular system checks can help reduce energy usage without affecting the guest experience.
• Air conditioning and cooling: air conditioning can increase business electricity usage, especially in buildings with high heat gain. Heat gain happens when a building absorbs warmth from sunlight, equipment, lighting or poor ventilation. Hotels can reduce energy consumption by setting air conditioning to a sensible level, maintaining systems properly and using controls that prevent cooling when rooms are empty.
• Lighting: these costs build up quickly across hotel rooms, corridors, stairwells, restaurants, car parks and back-of-house spaces. LED lighting uses less energy than traditional light bulbs and can make a big difference across large sites. Motion sensors, occupancy sensors, daylight sensors and timer switches also reduce lighting spend.
• Kitchens, refrigeration and cold rooms: hotels with restaurants, bars or event spaces often use a large amount of energy in catering areas. Ovens, hobs, dishwashers, refrigeration units and cold rooms all add to business electricity and business gas demand. Cold rooms should be checked regularly for damaged seals, poor temperature control or excess energy use. Small faults can lead to big energy bills.
• Guest rooms: hotel rooms can create energy waste when heating, cooling and lighting stay on while rooms are unoccupied. Key card controls, occupancy sensors and clear housekeeping procedures can reduce energy usage. Simple manual steps, such as making sure windows are closed when heating or air conditioning is running, will also reduce energy loss.

Why hotel energy bills can change

A higher hotel energy bill does not always mean the site has used more gas or electricity. Usage is part of it, but it is not the full picture.

Hotels can see costs move because of colder weather, higher occupancy, heavier kitchen demand, more laundry, longer event hours or increased air conditioning use. Those changes are operational and usually easy enough to explain.

The less obvious changes often sit in the business energy contract.

Costs can change because of:

• Unit rates on the business energy contract
• Standing charges
• Contract renewal timing
• Out-of-contract rates
• Deemed tariffs when moving premises
• Changes in wholesale energy prices
• Estimated bills being corrected by actual meter readings

The unit rate is the price paid for each unit of gas or electricity used. The standing charge is the fixed daily cost for keeping the supply available, whether the hotel uses a lot of energy that day or very little.

Busy hotels can be heavily affected by small changes in unit rates, while a multi-meter or low-occupancy period can make standing charges more noticeable.

Contract timing is another common issue. If a business energy contract ends without a new agreement in place, the hotel may be moved onto out-of-contract rates. These are usually less competitive than negotiated business energy tariffs and lead to a spike in costs, especially for sites with high or constant demand.