High Performance Hospitality
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High Performance Hospitality Sustainable Hotel Case Studies By Michele L. Diener Amisha Parekh Jaclyn Pitera With a Foreword by Andrew J. Hoffman orchard garden hotel; san francisco, ca mid rate hotel High Performance Hospitality Sustainable Hotel Case Studies By Michele L. Diener Amisha Parekh Jaclyn Pitera ©March 2008 With a Foreword by Andrew J. Hoffman All greenhouse gas emissions generated from air and road travel associated with the development of this report have been offset through carbonfund.org. This handbook has been printed on 30% post-consumer recycled paper with vegetable-based ink. orchard garden hotel; san francisco, ca tablemid of rate contents hotel Table of Contents page 5 Foreword 7 Acknowledgements 9 Executive Summary 10 Case Study Matrix 11 User Guide Section 1: Research Background 13 Hospitality Industry Overview 13 What Is a High Performance Hotel? 14 Growing Interest in High Performance Hospitality 15 Perceived Barriers 15 Research Goals and Methodology Section : Key Findings 19 High Performance Hotel Best Practices 19 Common Construction and Operations Features 21 Innovative Construction and Operations Features 21 High Performance Hotel Education 23 Business Case 23 Drivers for Constructing and Operating Sustainable Hotels 25 Market Response 25 Stakeholder Advantages 26 Lessons Learned 29 Opportunities for Industry Improvement Section : Case Studies 30 Mid Rate Hotels 33 Orchard Garden Hotel 53 Comfort Inn & Suites Boston/Airport 70 Conference Center Hotels 73 Inn and Conference Center University of Maryland University College 89 Airlie Center 107 Hilton Vancouver Washington 124 Luxury Hotels 127 Mauna Lani Resort 145 The Fairmont Banff Springs 161 The Ritz-Carlton, San Francisco Appendices 179 Appendix A – Advantages of High Performance Hotel Design, Construction, and Operations 184 Appendix B – Metrics and Key Performance Indicators 185 Appendix C – Certification Programs for High Performance Hotels 190 Appendix D – Glossary 196 Appendix E – Team Biography mid rateforeword hotel Foreword Let us eliminate the phrase “green construction” from would pay extra for consumer electronics that use less our lexicon. Let us talk instead of “smart building,” “high energy or come from a company that is environmen- efficiency building,” “high-performance building,” or tally friendly. simply “the future of building.” Certainly, that is not • Employees want green buildings. According to another going to happen immediately. The term “green” remains 2007 study, 80% of young professionals are interested far too ubiquitous and salient, even in 2008. However, in securing a job that has a positive impact on the envi- the future of the construction industry is clear. It is the ronment, and 92% give preference to working for creation of buildings that use less energy and less water, a company that is environmentally friendly. Among and are healthier places to work, play, live and rest. But, MBA students, 75% from top schools are willing to do not think of green building as a moral or even an accept a salary that is lower by between 10% and environmental issue. Think of it as a market shift. 20% to work for a “responsible” company. The signals of this market shift are clear. Energy prices • Financial markets want green buildings. Goldman are steadily increasing – more than $100 per barrel of Sachs, Bank of America, and Citigroup are just three of oil, and a price for carbon soon to add to that staggering the many companies that have announced multi-million figure. Water price increases also are looming on dollar set asides for investments in green buildings and the horizon – the American Southwest has lived with energy-efficient technologies. In 2006, the total United this burden for years and the Southeast is now learning States venture capital investment devoted to clean en- about the fragility of a so-called secure water source. The ergy companies reached $2.4 billion, over 9% of fact is that buildings use 71% of this country’s electricity, all venture capital spending. 39% of its overall energy, and 12% of its water. And yet, our building codes have not kept pace with the reality • And, the construction industry wants green buildings. that we need to use these resources more efficiently. For The nation’s largest green building conference, Green- every unit of gross domestic product (GDP) we create Build, has witnessed a steady increase in attendance in the United States, we use 50% more energy than the that reflects its growing importance: from 4,000 in European Union and Japan use for the same GDP unit. 2002 to 22,000 in 2007. What used to be a conference While that is due, in part, to the sheer size of our country of smaller companies offering hard-to-find products is and to the costs required to ship materials across it, it is now populated by major corporations such as Siemens, also an indication of how badly we build our buildings. General Electric, Turner, Trane, and Skanska. These companies are drawn by market returns. The reality This does not mean that the opportunity does not here is that if you are in the construction industry, you exist for companies to reap benefits in the absence of have to be in the green building segment. regulation. When Andreas Schlaepfer, head of Internal Environmental Management at Swiss Re, was charged This means that, whether you are an engineer, architect, with the task of making his company’s buildings more contractor, designer, or owner; or whether you are in the energy efficient, he was surprised to find that, “If you’ve home building, hospital, commercial, retail, manufactur- never focused on energy efficiency before, achieving a 30 ing, or hospitality sectors, you have to do it, too. The percent reduction is simple.” economics of the market signal are here. The market demand is here. The future of green construction is now. And the market is responding. This report focuses on the hospitality market segment. • Customers want green buildings. While single family Not an insignificant piece, the hospitality industry is the housing starts fell 14.7%, and sales of lumber and con- third largest retail industry (after automobiles and food) struction materials fell 12% between December 2005 in the United States, generating annual revenues of $133 and December 2006, makers of green building products billion in 2006 and spending $3.7 billion in energy to reported increasing sales. According to a 2007 study do it. But, the hospitality industry is not immune to the by Forrester Research, 12% of American consumers demands of the green market shift. Nor is it denied the orchardforeword garden hotel; san francisco, ca opportunities to be gained by embracing that shift. As This report lays out a solid case that dispels any precon- this report shows, there are financial benefits in green ceptions about the costs and benefits of high performance buildings, both in construction and operations. Among buildings. However, it is not just another advocate’s plea. these pages, you will find evidence that energy-efficient Based on real case studies, this report is a solid analysis, hotel lighting alone could save $133 to $777 million from a business perspective, of the financial rationale for annually. Opportunities in water management could thinking differently about the infrastructure and opera- yield additional savings of 25% to 30% over business as tions of the hotel industry. It is grounded work. Industry it is currently operated. And using less toxic materials readers should use it as a guidepost en route to where the in both construction and operations creates a healthy future of the hospitality industry is going. If you do not, indoor environment that customers and employees your competitors will. will find attractive. Andrew J. Hoffman If you are a hotel operator, owner, or developer, and you Holcim (US) Professor of Sustainable Enterprise do not recognize these benefits, you are leaving money University of Michigan on the table. Your customers are beginning to ask for it. Your workers will have more allegiance if you do it. And most of all, your competitors will steal your market-share if they do it before you do. acknowledgementsmid rate hotel Acknowledgements We would like to thank our faculty advisor Andy We would also like to thank the following people Hoffman for his encouragement and guidance. We also for their support of our project: Chris Balfe, Kimo would like to thank Elsie Orb, Jackie DiGiovanni, and Bertram, Ashley Boren, Kass Bradley, Bill Browning, Fred Wessells, our editors, and Tish Holbrook, our Jim Burba, Ray Burger, Javier Carey, Kit Cassingham, graphic designer, for their technical assistance and Cyndy Cleveland, Sarah Connick, Susan Corlett, Cox enthusiasm. For their generous financial support, we Family Fund, Peter deBrine, Lyndall deMarco, Jeffrey would like thank our sponsors: American Hotel & Diener, Sushma Dhulipala, Tim Eaton, Heather Fur- Lodging Educational Foundation, Graham Environmen- midge, Chris Garvin, George Glazer, Dave Good, Bjorn tal Sustainability Institute, Interface, Inc., Knoll, Inc., Hanson, Sara Harding, Aaron Harris, Glenn Hasek, Frederick A. and Barbara M. Erb Institute for Global Elliot Helman, Rina Horiuchi, Drew Horning, Alex Sustainable Enterprise, Sustainable Conservation, and Karolyi, Ashley Katz, Jennifer Kelly, John Lembo, Corey the University of Michigan School of Natural Resources Limbach, Mimi Limerez, JD Lindeberg, Charles Lock- and Environment. wood, Bryan Magnus, Kevin Maher, Michelle Moore, Matt Ouimet, Michael Pace, Janak Parekh, Audrey We would like to thank the following people for as- Paskel, Michael Petrone, Steve Pinetti, Michelle Poinelli, sistance in developing the case studies: Benjamin Birge, Naomi Porat, Rhonda Ratcliff, Maurice Robinson, Dan Kevin Carter, Gina Clatterbuck, Paul Clevenger, Jennifer Ruben, Max Saffell, Matt Salazar, Corey Seeman, Amy Dekkers, Oliver Dibble, Ranie Fukumoto, Lori Grant, Spatrisano, Emma Stewart, David Stipanuk, Jason Stone, Melinda Hinkley, Robert Hoonan, Lee Kirby, Jean Brian Swett, Brian Talbot, Lyle Thompson, Bob Tierney, LaChance, Rhonda Leach, Gerry Link, Carlos Lopez, Jeff Vahle, Melissa Vernon, Austin Whitman, and Milet D.