The hospitality industry is facing some major shifts in trends over the next few years, according to the experts in the hospitality sector. In fact, 2013 is projected to be a better and brighter one for the hospitality property owners, but industry insiders are pointing out the need for a closer look at bottom line capital expenses when competing in this highly crowded sector. When valuing a hotel or resort property, Robert A. Rauch from hospitalitynet.org offers this equation: “Each dollar on the bottom line increases the value of your asset by about $16 depending on capitalization rates. So a savings of $60,000 means an increase in value of about $1M.”
So, where should a hotel or resort look to find those savings that can increase the value of the property? Well, according to a white paper by IVA Communications, titled: EnergyManagement Challenges in the Hospitality Industry, “Energy costs associated with heating, ventilation and air conditioning (HVAC) add up to one of the largest operating expenses for property owners. In most companies, the cost of energy is the largest unmanaged line item operating expense.”
This would suggest that one place to find savings for property owners would be in exercising firmer control over energy usage and costs, and this is where Elemco can help. Consider this, from the same white paper: “Sold hotel rooms are unoccupied an average of twelve or more hours per day, with the HVAC system left on most of the time. Energy savings can result from automating the process of dynamic setbacks for the HVAC unit when a room becomes unoccupied. Without energy management, systems will continue to run at the guests’ temperature set points until physically changed, even when a room is unoccupied.”
This is just the sort of thing Elemco can help with. We recently installed controls at hotels that increased operating efficiency and drove cost reductions simply by automating the usage of energy in areas of the hotels that were not currently occupied. To see how Elemco’s solutions can help you achieve efficiencies, go here.