How hotel property owners can afford to maintain sustainability
To provide services for guests, hotel properties are prone to consuming a high volume of energy and water. Heating, cooling, lighting, laundry, irrigation, and operating swimming pools are just some of the activities that drive usage. Just how much? A recent report from the Urban Land Institute reveals that hotels are among the highest energy and water users per square foot in comparison to other buildings in the commercial sector. In fact, an analysis by ENERGY STAR estimates that hotels in America spend an average of $2,196 per available room each year on energy alone!
There is a big opportunity for hotel owners to save on energy and water expenses by upgrading inefficient equipment in favor of more sustainable options. However, for many owners in the hospitality industry, the last couple years of unprecedented financial difficulty makes this investment out of reach.
Did you know that the State of Texas has a program designed to help hotel property owners afford energy and water upgrades?
The Commercial Property Assessed Clean Energy (C-PACE) program works in collaboration with city and county leaders to offer low-cost financing to hotel property owners for purchasing more sustainable energy and water equipment. Hotel property owners can finance upgrades, typically with little to no upfront costs, over longer terms, realizing energy and water savings right away. This financing option is lower risk because it is tied to the hotel property, not the owner. Hotel owners make payments towards the loan through a special property assessment that is transferable if the hotel is sold to another owner.
Lone Star PACE is an established C-PACE program administrator in the State of Texas. Their team of seasoned finance professionals can help guide you and determine your eligibility requirements, helping you reduce your monthly expenses and operate a cleaner, more sustainable hotel property.
Contractors, lenders, and commercial property developers have a lot to gain with C-PACE. Read on for more information!
Contractors: Are you working on a hotel property or hope to gain more projects in the hospitality industry? C-PACE is a great tool to help clients achieve their goals and increase the statement of work for your job. C-PACE helps make projects possible TODAY instead of years down the road.
Lenders: Are your clients in the hospitality industry struggling to find affordable capital? By educating your hotel property owner clients about C-PACE, you are helping them obtain low-risk and low-cost funding with the potential to lower their monthly energy and water expenses significantly.
Commercial property developers: Hospitality is a struggling industry that needs to provide a cleaner, safer indoor environment to meet guest expectations. With C-PACE, your clients save on monthly expenses while operating a more modern hotel property. By taking advantage of C-PACE, your firm has the opportunity to develop more hotel properties in Texas.
Sources: https://2os2f877tnl1dvtmc3wy0aq1-wpengine.netdna-ssl.com/wp-content/uploads/ULI-Documents/ULI-HotelSustainabilityReport.pdf, https://www.energystar.gov/sites/default/files/buildings/tools/SPP%20Sales%20Flyer%20for%20Hospitality%20and%20Hotels.pdf