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Lodging Overview WSPPNOctober 2009

Today’s Agenda

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Overview of Industry

Business Basics

Training and Behavioral Change

Bricks and Mortar

Why I’m Here

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•I am all about the food.. And I mean all….

And Nature…

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And Anti-Litter… (Creating Beauty)

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•Everything is Now Green (even if it isn’t)

•Corporate Social Responsibility

•Partnership for Global Sustainable Tourism Criteria

•State green hotel programs

•EPA Pollution Prevention Plan focusing on hospitality

•National Green Meeting/Conference Standards by 2010

•Scary news: Slow Disasters - Tourism late-ish in arriving at sustainability

Sustainable Tourism Drivers

Industry Overview

• Vast range in size and ownership, from small B&Bs, mid-range franchises to 7,000 room resorts in Las Vegas

• 30,000 companies with 50,000 locations

• $90 billion in annual revenue

• Key Metrics (concerns): retail sales, occupancy rates, average room prices, RevPAR (which is revenue per available room or occupancy rate x average daily room rate) PR/goodwill/reputation

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Industry Overview

• Managers are often trained but very few have a background in sustainable business or natural resources

• Larger hotels operate on a department basis: housekeeping/rooms engineering, F&B, Executive, Front Desk, Sales and Marketing 8

Hospitality is Big Business

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WHOLE BUSINESS AND SECTOR APPROACH

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Triple Bottom Line: More than just Money

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Drivers Of Sustainable Tourism and Green Business

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National Standards for Green Meetings

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Accommodations

Read What Hoteliers Read

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Partner with a Business Professional and Market The Strategic Business Case

Worldviews Tend to Create Narrow Viewpoints

Engineer-Executive Chasm is a Core Barrier to adopting sustainable technologies and processes

You must, as a P2 provider, learn the language of the BANK

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Engineer, Meet Executive

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The Language of The Executive

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The Business Case Simply Put

Efficiency

Expansion

Engagement

Empowerment

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Move Beyond First Cost Thinking (and talk)

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Talk about Long Term Asset Value

Increased Net Operating Income

Investments in Operations and Maintenance

Integrate Executives into Engineering Meeting Early in process

Communicate Healthy Lifestyles and Values

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Healthy Organizations Adopt Change More

Readily

Training- Adults Learn by Doing

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Cross Functional Groups “Rock”

Key for community-based planning and environmental planning for lodging

Hotel Green Teams

•Empower them

•Give Them Time and Resources

•Secure Upper Management Support

•Seek genuine zeal

•Use pilot projects

•Be organized- use targets and performance

measures

•Communicate- both internally and externally and

•Celebrate all successes

Take Away

• Partner with organizations or professionals that can translate engineering speak and environmental speak into financial terms

• Encourage and use cross departmental teams to help promote a more holistic approach to environmental management or sustainability in the hotel

• Provide additional business support outside technical assistance

• Engage the hotels on a social basis and support cocktail hour exhibitions of emerging technologies, trends etc (make learning about “the environment” fun)

• Help identify financing, including state and federal tax incentives and credits, in addition to grants and utility incentives

• Make the whole business argument

The Hotel System

•The Building itself

•Everything purchased, used and disposed of

•Communication

General Resources for Whole Buildings

•Energy and Environmental Building Association: www.eeba.org/reources/criteria.htm

•USDOE’s Office of Energy Efficiency and Renewable Energy: www.eere.energy.gov/informationcenter•Green Hotel Association (membership based): www.greenhotels.com•Consider working with a Commissioning or Retro-commissioning agent: this is a great way to analyze a whole building: Building Commissioning Association; look for the Northwest and Southwest regional chapters: www.bcxa.org

•AH&LA Green Challenge: www.ahla.com/greenchallenge•CB Richard Ellis 2009 Report: Who Pays for Green? The Economics of Sustainable Buildings•Department of Energy Real Estate Energy Alliance: http://www1.eere.energy.gov/buildings/real_estate/-requires benchmarking and sharing data. Current members include AHLA, Hilton Hotels, MGM Mirage, Walt

Disney Company and Wyndham Hotels & Resorts.

http://www.eeba.org/reources/criteria.htmhttp://www1.eere.energy.gov/buildings/real_estate/-http://www1.eere.energy.gov/buildings/real_estate/-

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Certification Programs1. Green Globe certification:

www.greenglobeint.com (based on ISO14001, 14002 and 14004 models)

2. Green Seal standard for Lodging: www.greenseal.org/programs/lodging.cfm

3. LEED: www.usgbc.org (new construction and existing, operations and maintenance or EBOM)

http://www.greenglobeint.com/http://www.greenseal.org/http://www.usgbc.org/

Energy Star Great Model

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General site for Hospitality: www.energystar.gov/index.cfm?c=hospitality.bus_hospitality

Benchmarking Portfolio Manager

http://www.energystar.gov/index.cfm?c=hospitality.bus_hospitalityhttp://www.energystar.gov/index.cfm?c=hospitality.bus_hospitality

Portfolio Manager

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Other Benchmarking Tools

• Intercontinental Hotel Group (IHG) has a benchmarking tool, is rolling out its recent Green Engage tool and has an online site called Innovation: www.ihgplc.com/innovation/index.asp?pageid=23

•Oak Ridge Benchmarking Building Energy Performance: http://eber.ed.orul.gov/benchmark

•Lawrence Berkeley Labs: http://energybenchmarking/lbl.gov

•Article: “8 Energy Benchmarking hurdles (and How to Get Over Them)

•http://www.buildings.com/ArticleDetails/tabid/3321/ArticleID/6208/Default.aspx

http://www.ihgplc.com/innovation/index.asp?pageid=23http://www.ihgplc.com/innovation/index.asp?pageid=23http://eber.ed.orul.gov/benchmarkhttp://energybenchmarking/lbl.gov

The Hotel as a Building Envelope and Systems

Building Impacts in the U.S.

Efficient Building Characteristics

•Efficient Buildings:

•Use materials efficiently

•Respect site location and tree/vegetation

retention

•Have efficient HVAC and water systems

•Use healthy indoor interior design

materials and cleaning chemicals

Tax Incentives

•Energy Tax Incentives: http://energytaxincentives.org/

business/commercial_buildings.php

•A tax deduction $1.80 per square foot

•Must save at least 50% of the heating, cooling, ventilation, water heating, and interior lighting energy cost of a building that meets ASHRAE Standard 90.1-2001

•$.60/sq/ft exemption for 1 of 3 building systems that reduce HVAC, water heating and interior lighting energy

http://energytaxincentives.org/business/commercial_buildings.phphttp://energytaxincentives.org/business/commercial_buildings.phphttp://energytaxincentives.org/business/commercial_buildings.php

Energy Management Steps

• Benchmark Energy Data

• Energy Audit

• Life Cycle Cost analysis (investment over time)

• Get bids and energy incentives

• Measure and verify

Energy Conservation Measures

1. Building Automation and Controls

2. Lighting

3. HVAC/Mechanical

4. Electrical Measures

5. Building Envelope

6. Water

Building Automation

•Includes chiller and boiler optimization, variable air volumepressure and flow control, domestic hot water control and system retro commissioning

•Integrated Control Applications includes variable frequency drives(which optimize the power consumed by HVAC fan- 20% reduction in fan speed and air flow results in a 49% decrease in electrical consumption), card activated systems

Expensive, but Worthwhile EMS

Energy Key Cards- Late to US Market

Lighting

• Productivity gains of 7.1% with lighting controls

EQUALS

$600-$700/employee/year or

$3/sq. ft./year

(Your staff are the highest per square foot expense

Lighting

•Occupancy Sensors

•Time Scheduling

•Daylight Dimming

•Bi-Level Switching

•Demand Lighting

Sexy for Engineers… HVAC

•Replace inefficient equipment •Change heating and cooling sources•Heat recovery•Boiler and chiller tune up•Steam trap replacement•Variable air volume conversion

Variable Frequency Drives

Water Use in Hotels

•#1 Rooms, #2 laundry, #3 kitchen and landscaping

•100-199 rooms: 159 g/r/d and 200-700 rooms jumps to 254 g/r/d

•Overall potential for water conservation is between 17-23%, with laundry the biggest savings potential between towel linen programs and efficient equipment

Bathrooms- Great opportunities

Cooling Towers

•Cooling towers lose a lot of water through evaporation, blowdown

•Evaporation leaves suspended solids which lead to scale and fouling so water must be drained off and replaced with make up water. The amount of bleed off and make up water is expressed as a cycle of concentration

•Solution? Install a conductivity controller unit to reduce the flow of make up water and increase the concentration ratio

•Install blowdown meter so you are paying only for the water discharged and not for the water evaporated

Laundry- most sensitive, most opportunity

Ozone Systems

Towel Linen Programs Fab… IF they work

•Programs offer guests opportunity to have linens and towels washed every 3 days

F&B or Food and Beverage

•Best Document Award:

Putting Energy into Profits: Energy Star Guide for Restaurants

Food Recovery

Removing Barriers to Food Donation

•http://hungermaps.org

Create map to match food with local needs

•Bill Emerson Good Samaritan Act: www.usda.gov/news/pubs/

gleaning/appc.htm

•Great CSR and local community support strategy

•LeanPath.com: food waste tracking system

http://www.usda.gov/news/pubs/

Waste Not Want Not

•Waste issues often kick off hotel greening programs

•14 lbs/waste/room/day and double on day of check out

•50-65% can be recycled, reused or prevented

Green Purchasing or EPP Best Option but Most Difficult

•Toxicity

•Recycled content

•Remanufactured or reconditioned (new life)

•Durable with warranties

•Energy and Water Efficiency

•Take back potential (it’s not mine anymore)

•Biobased (nature is smarter than us)

•Reduced Lifecycle Impacts

…and it covers almost every conceivable thing the hotel buys from office electronics, to drapes to food

Product Categories

•Paper

•Cleaning Chemicals

•Food

•Electronics

•Interior Design elements

In these Images We Trust

More Images to Look For

Special Products to Pay Attention To

•Electronics

EPEAT

•Environmentally Preferable Electronics Assessment Tool:www.epeat.net

•23 criteria addressing toxics, packaging, CSR

•Over 1,300 products registered, including desktops, monitors, laptops, “thin clients,” and workstations

http://www.epeat.net/

Electronics Recycling

•Find local sources for donation

•Local recyclers should belong to e-stewards.org

Chemicals

•Supplier Love

•Over-inventory

•Poor MSDS management

Related Issue: Indoor Air Quality

VOCs and Green Guard

•Janitorial workers have 2 times the rate

•of asthma compared to the national average

•Almost 8% of all kids have asthma

Golf Course Management and Landscaping

Golf Courses

The Guest One Never Thinks About…

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Our warmest thanks for having us today

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Please Contact Us for Collaboration

Heidi Siegelbaum

heidi@calyxsite.com

(206) 784-4265

Steve Gersman

steve@calyxsite.com

(425) 922-0102

mailto:heidi@calyxsite.commailto:steve@calyxsite.com