Over the last decade, hotels around the world have faced increasing financial challenges as margins and profitability have decreased. The hospitality industry as a whole is challenged with budgetary constraints: The recent and ongoing increases in energy costs have led to losses for many hotels and has squeezed margins in others.

Add to that the staggering statistic that on average, America’s 47,000+ hotels spend $2,196 per available room each year on energy. This represents about 6 percent of all operating costs.

So how will hotels handle this increasing financial pressure?

♦  Through a strategic approach to energy efficiency, a 10 percent reduction in energy consumption would have the same financial effect as increasing the average daily room rate (ADR) by $0.62 in limited-service hotels and by $1.35 in full-service hotels.

♦  The 2015 edition of Trends® in the Hotel Industry found that “electricity is the largest utility expense comprising 60 percent of total expenditures. Water/service is the next largest utility cost (23.8%) followed by gas/ fuel (10.6%), and steam (2.3%).

♦  A survey of 1,300 U.S. travelers by TripAdvisor shows that nearly two-thirds of travelers – 62 percent – often or always consider environmental-friendliness when choosing a hotel. The survey also shows that 69 percent say they plan to make even more eco-friendly choices in the next 12 months.