How to Save Energy in the Hospitality Industry
Business energy costs in the UK hospitality industry are a major concern for every business owner. Current reports indicate the industry’s total annual expenditure on energy exceeds £1.3 billion.
With some venues seeing their business energy costs more than double over the last two years, finding ways to reduce energy consumption is no longer optional.
In a competitive market, hospitality businesses often operate on tight margins. For many hotels and restaurants, energy expenses represent a significant portion of total operating costs.
This financial pressure makes energy management a priority for maintaining a healthy cashflow and a resilient business model.
At Business Utility Hub, we believe that understanding your consumption is the first step toward significant cost savings. By focusing on efficiency, you can protect your bottom line while preparing for a more sustainable future.
What is the role of energy consumption in hotel operations?
In any hotel, the primary goal is to provide a high-quality guest experience. However, maintaining that experience requires constant energy consumption.
Whether it’s 24/7 lighting in hallways, commercial refrigeration in the kitchen or the constant hum of air conditioning, energy is woven into the fabric of daily operations. This means many businesses are paying for energy they don't actually need.
Modern hospitality energy management focuses heavily on "Process." The process of how you heat your building or manage your kitchen is a key part of your service delivery andoverall environmental impact.
How much energy does a hotel use per day?
Providing a single figure for daily energy consumption is difficult because it depends on the size and age of the property. However, industry benchmarks suggest a typical guest room can consume roughly 50 kWh of electricity per day.
This adds up quickly when you consider the laundry, catering and leisure facilities common in the hotel industry. On an annual basis, the UK sector consumes about 20,910 GWh.
Experts suggest that 4,300 GWh could be saved annually across the hospitality sector simply by improving energy efficiency and reviewing business energy rates.
Aligning service standards with energy efficiency
To implement effective energy-saving measures, you must align them with your core management frameworks. Communication and collaboration are essential when engaging staff in your sustainability efforts.
Without a commitment from the team to turn off unused equipment, technical upgrades will only go so far. Similarly, clear communication influences how you encourage guests to save energy.
When you share your goals, guests are often happy to participate. Providing the choice to opt out of daily linen changes can reduce energy consumption for laundry by up to 20%.
Practical energy saving opportunities for your venue
Heating and cooling management
Because heating and hot water represent the largest portion of your energy consumption, they offer the biggest savings. Heating, ventilation and air conditioning (HVAC) systems should be serviced regularly to ensure they're efficient.
Even a small drop in performance can lead to a surge in business energy costs. Installing smart thermostats is one of the most effective ways to reduce consumption. By integrating your heating with your booking system, you ensure you aren't heating empty spaces.
Energy-efficient lighting solutions
Switching from traditional bulbs to LED lighting can cut your lighting energy consumption by up to 75%. LED bulbs last longer and generate less heat, which reduces the load on your HVAC systems.
This simple swap makes a big difference to your monthly business energy rates. To further improve efficiency, you should install occupancy sensors and motion sensors in low-traffic areas like corridors and storerooms.
Daylight sensors can also adjust the brightness of indoor lights based on natural light levels. This ensures you aren't wasting electricity during the day.
Kitchen and refrigeration efficiency
The kitchen is an energy-intensive environment. Regularly defrosting freezers and cleaning refrigeration coils can improve energy efficiency by up to 25%.
Ensure that energy-efficient appliances are used wherever possible. Energy Star-rated models significantly reduce energy consumption over their lifespan compared to older units.
Promoting behaviour change and staff engagement
Technology is only half of the solution; behaviour change is the other. You must engage staff at all levels to make saving energy a part of their daily routine.
Housekeeping staff are in a unique position to reduce energy in guest rooms. They can close curtains to keep heat in during winter or block the sun in the summer.
By educating your team on your specific carbon footprint, you create a culture of responsibility. When staff understand that reducing consumption is key to a sustainable future, they're more likely to follow efficient practices.
How Business Utility Hub can help reduce your energy bills
At Business Utility Hub, we provide more than a simple comparison service. We are energy specialists who help hospitality businesses make informed decisions about their energy procurement, usage and wider energy management.
Our team monitors electricity and gas markets daily, allowing us to identify business energy contracts that align with your operational requirements and budget. We can also advise on renewable energy technologies, including solar panels and heat pumps, helping you assess opportunities to reduce reliance on traditional energy sources.
We take a broader view of your energy strategy by considering your carbon footprint, greenhouse gas emissions and hospitality energy consumption alongside your procurement needs. Our advice is transparent, with no hidden fees, and every client benefits from a dedicated account manager who can support them throughout the procurement process and help identify energy efficiency opportunities.
Reducing energy consumption can lower operating costs while supporting environmental objectives. Measures such as upgrading to LED lighting, improving equipment efficiency, reducing energy waste and providing staff training can help prevent unnecessary usage and deliver measurable savings over time.
If you would like to review your current energy arrangements or explore new technologies that could benefit your business, our team can provide practical, straightforward guidance to support your approach to hospitality industry energy management and help you find the right solution.
Contact BUH today to start your journey toward better energy management, call us on 0800 781 2700 or email us on savings@businessutilityhub.co.uk. Alternatively, complete our online contact form and a member of our team will arrange a convenient time to speak with you.
Get prepared before your renewal date
Do not leave utility management until the last minute. Preparing early gives your business more time to review energy usage, compare options and avoid expensive out-of-contract rates.
Whether you work in hospitality, managing energy costs is important for cashflow. The energy market changes regularly, so the right deal will depend on your current contract, renewal date, site usage and chosen energy supplier.
Ready to see how much you could save on your next business energy contract? Contact us today for a clear review of your energy position.
- Call us: 0800 781 2700
- Email us: savings@businessutilityhub.co.uk
Review your current energy contract before you sign elsewhere. We’ll help you compare supplier options, understand the terms and choose a fair deal with practical support from start to finish.
