Energy Finance Solutions for Hotel Retrofits 2018-02-12T12:14:50+00:00

For a full- service hotel, energy costs clock in between 4 and 6 percent of revenue, while historic and luxury properties see energy costs hit 10 percent or more of revenue. Every 10% reduction in energy consumption has the same financial effect as increasing your average daily room rate (ADR) by $0.62 to $1.35. Unfortunately, like many hotels, your available working capital is slated for customer facing improvements. But waiting to update your energy systems puts you at  risk of an emergency replacement—disrupting guests and forcing you to spend more than you should.

With RENEW’s energy efficiency project solution you can do both projects. Upgrade energy infrastructure now with RENEW without upfront capital and without adding debt to the balance sheet. And, you immediately reduce your operating costs, improve your building’s health & safety, and enhance your brand image with environmentally concerned travelers.

Why Retrofit Your Hotel with Renew Energy Partners?

You own a 70+ room, luxury boutique hotel with restaurant and retail complex and want to upgrade the lobby. High efficiency upgrades to lighting and HVAC systems would save you $175,000 a year in energy costs, improve the guest experience and increase the building’s value, but the competition for scarce capital makes it difficult to invest the needed $600K for energy efficiency upgrades. What are your options?

 

OPTION 1: WAIT TO UPDATE SYSTEMS

If you defer, you continue to overspend on energy, while systems continue to age, putting your hotel at risk of having to make emergency repairs or replacements.

OPTION 2: RENEW IT NOW

RENEW invests $600K now in high efficiency upgrades for your hotel and ongoing maintenance to ensure maximum efficiency. RENEW’s solution provides you positive cash flow from day one. By doing the retrofit now, the NPV of your savings far exceeds the NPV if you wait 18-24 months. The retrofit has reduced your expenses and risk and allowed you to invest your capital in the luxury updates you intended on.

 

RENEW’s experienced team offers expertise in energy efficiency programs, project management, implementation and finance. To learn more about our smart approach for making energy efficiency replacements and upgrades, contact us today.

Learn how we can help you with your energy efficiency replacements and upgrades.

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