Blog

Subject: Sustainable Reduction of Energy Costs in the Hospitality Industry

Introduction

During my extensive travels across hotels in Asia, I have observed that most establishments still lack effective energy-saving strategies, even though energy expenses typically account for 4% to 8% of a hotel’s total revenue, depending on its size and category.
Our audits in several regional properties have demonstrated that it is possible to reduce energy bills by 30% to 40% through simple, long-term, and cost-effective measures—without compromising guest comfort.

1. Electricity – A Major Yet Overlooked Expense

In most hotels, lighting and air conditioning together represent more than 60% of total electricity consumption.
Our observations highlight several sources of waste:

• Outdoor and signage lighting left on throughout the night;
• Corridors and common areas illuminated continuously, often with non-LED bulbs;
• Lack of motion sensors or timers to adapt lighting to occupancy levels.

Solutions and Observed Results

• Switching to 100% LED lighting: 25–30% savings on lighting consumption.
• Installing motion sensors in corridors and service areas: 10–15% savings on total electricity usage.
• Automatic signage programming (for example, lights off at midnight): 5–8% additional savings.

Together, these measures can generate an overall 20–25% reduction in electricity costs within a year.

2. Air Conditioning – A Hidden Opportunity for Savings

Air conditioning is often the largest energy expense, representing 40–50% of total electricity costs in a hotel.
However, many properties keep temperatures between 18°C and 20°C, even in public areas, which is both wasteful and uncomfortable.

Recommendations

• Set interior temperatures 10°C below outdoor temperature.
  • Example: If it’s 33°C outside, a setting of 23°C provides optimal comfort.
• Install smart thermostats and door sensors in guest rooms.
• Perform regular maintenance of filters and compressors, as poorly maintained systems can consume up to 15% more energy.

Observed Results

In audited hotels:

• Temperature adjustment + preventive maintenance = 18–22% energy savings.
• Installation of smart thermostats = 8–10% additional savings.

3. Best Practices and ROI

Energy savings don’t always require major investments.
Here are a few examples with their average returns:

Conclusion

Reducing energy consumption in hotels across Asia is an economic, environmental, and marketing opportunity.
Hotels that have adopted these measures have achieved 30–40% reductions in energy bills and higher guest satisfaction, thanks to improved comfort and a more responsible brand image.

Energy efficiency is no longer optional — it is a strategic advantage for long-term competitiveness.