The hotel industry is a top-level, luxurious sector of the market. Today hotels play an important role in tourism, especially when foreign companies are travelling abroad or families are visiting for their summer vacations. Competition in lodging rates is a constant challenge for hotel management. Hotels need to offer guests an economical rate, yet still factor in operating costs.

During hotel budget reviews hotels have found a substantial growth in electricity costs. These costs are approximately 20% to 30% of total expenses. To solve the issue of high energy expenses, hotel managers have decided to reduce electricity expenses through the implementation of total energy solutions. Smart Hotel Solutions provides a total energy solution for reduction of electricity expenses.

Currently many hotels elect to reduce electricity consumption by using Hotel Energy Management Systems. The reduction in electricity energy expenses will vary from hotel to hotel, depending on the size of the guest room, size of the hotel, season, surroundings, location and other factors. Doron Danon, Managing Director of Smart Hotel Solutions said when installing a hotel energy management system, most hotels would break even on the investment within2 years. They would also generate at least 30 percent returns — and as much as 100 percent returns — by the end of the four-year agreement through the cost savings and the incentive payments.

“In effect a reduction in consumption is roughly the same cost as the addition of a new generator to the system,” Mr. Boyer said. “And so we pay them roughly what we pay a generator to produce the same amount of energy.” Also, certain hotels will reduce energy consumption in individual rooms that have not been booked, with infrared automatic sensors and motion detectors flagging the central system when rooms are vacant. In some cases, the Total Energy solution program will alter energy use in advance of an expected heat wave. “They’d run the chillers overnight and make sure the common areas are cooled down to say 68 degrees when normally they’d keep it at 74,” said Doron Danon.

Use of Energy Management Systems for Tenants of Buildings

Surveys have proven that once tenants became accountable for their energy consumption, it will be gradually reduced. This kind of accountability can provide benefit in long-term cost savings from 20 to 25 percent. Energy Management System enables building or hotel managers to allocate energy usage costs fairly to multiple tenants or guests, as well as recover energy expenses from common-use areas. Tenants get benefit of paying only for the energy they use; and when they focus on conserving energy, they will find direct financial benefits from their efforts.