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How Hotels Can Cut Energy Costs – Without Cutting Quality

Infrastructure costs – especially energy costs – are among the biggest expenses for hotels, with air conditioning often making up between 40% and 50% of total energy costs.

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Doug Poffinbarger / Director of Commercial Operations, US West

17 Feb 2025

The hospitality industry has been steadily recovering since the major hit it took during COVID, but as inflation persists, managing properties is an exercise in juggling expenses. It is innately challenging, as maintaining the level of service and quality is essential.

Infrastructure costs – especially energy costs, - are among the biggest expenses for hotels, with air conditioning often making up between 40% and 50% of total energy costs. According to data, commercial buildings – in the US, including hotels, are responsible for 75% of all electricity use – and nearly half of that is used for heating and air conditioning. But savings are possible: Implementing on-site thermal energy storage, on its own or together with other sustainable energy solutions, could help properties cut their electricity bills significantly, especially as the cost differences widen between day and evening—or off-peak and peak– electricity rates. Read More

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