Sustainability is not just a goal; it is a necessity
Water and power conservation are central to lowering hotels' carbon footprint
By Vishnu Rageev RJun 22, 2024
THE U.S. HOSPITALITY industry faces an environmental wake-up call as guests seek accommodations that align with their values beyond amenities alone. This trend has fundamentally changed how hotels approach sustainability, with many adopting practices such as reduced water consumption and energy conservation.
Large hotel chains like Hilton Hotels & Resorts and Marriott International have openly declared their efforts to minimize environmental impact. However, achieving meaningful sustainability requires franchise owners and operators to be on the same page.
"As a global hospitality leader, Hilton is dedicated to providing exceptional guest experiences," said Jean Garris Hand, Hilton’s vice president of global ESG. "However, we also recognize our profound responsibility to safeguard the destinations where we operate for future generations of travelers. Our efforts to reduce energy, carbon emissions, water usage, and waste are integral to Travel with Purpose, Hilton’s comprehensive environmental, social, and governance strategy aimed at promoting responsible travel worldwide.”
Sustainability goals
Lower CO2 emissions to limit global warming and climate change. Image courtesy: iStock Photo
The hospitality industry’s operations often leave a significant environmental footprint, involving high energy consumption, water usage, and waste generation. Hotels alone contribute approximately 1 percent of global carbon dioxide emissions, according to recent studies. Hotels accounted for around 363 million tons of carbon dioxide in 2021, roughly equivalent to the annual energy consumption of about 45.7 million homes out of the 36.3 billion tons released worldwide.
Hospitality organizations are adopting targets for sustainability. Hilton aims to reduce emissions by 75 percent by 2030, while Marriott has committed to a 30 percent reduction in carbon intensity by 2025. Other companies, such as Sonesta International Hotels, Hyatt Hotels Corp., G6 Hospitality, Wyndham Hotels & Resorts and Choice International, have also set their targets. However, achieving these goals depends on how quickly their franchise partners embrace the changes.
“Within our environmental goals, Hilton aims to achieve a 75 percent reduction in emissions intensity across our managed portfolio and a 56 percent reduction in our franchised portfolio by 2030,” Hand said. “These targets are science-backed and endorsed by the Science Based Targets initiative, aligning with the latest climate science and the Paris Climate Accords."
Ontario, CA, USA - November 30, 2023: Signage for Motel 6, Motel plus Studio, located on Vineyard Ave in Ontario, California. Image courtesy: iStock Photo
"G6 Hospitality moved to a fully franchised model in 2022," said Farah Bhayani, G6 Hospitality's general counsel and chief compliance officer. "We consistently share best practices with our franchise owners and implement brand standards based on our extensive, more than 60 years of experience as economy lodging operators, including waste reduction strategies."
To reduce water and energy consumption in hotels, the first step is to conduct an audit to measure and monitor current usage, identifying areas for improvement. This can be done independently or with a professional auditor. Water-saving measures, such as installing low-flow faucets, reusing towels, collecting rainwater and educating staff and guests about conservation can then be implemented.
For energy savings, switching to LED lighting, using smart thermostats and incorporating renewable energy sources can significantly reduce emissions. Regular monitoring and evaluation of these efforts, using meters and feedback, help ensure continuous improvement. Joining certification programs like Green Key or LEED can provide guidance and credibility. Finally, collaborating with suppliers, contractors, and local authorities, as well as engaging guests and staff, fosters a culture of sustainability and innovation.
Water wisdom
Outdoor shower head for the bath and showering cold water to body before jumping in the resort pool. Image courtesy: iStock Photo
Water used in hotels and other lodging facilities accounts for approximately 15 percent of total water use in commercial and institutional buildings in the U.S., according to U.S. Environmental Protection Agency. Hotels are increasingly adopting renewable water sources. Water efficiency remains a concern, including integrating sustainable practices within hotels, hotel-owned restaurants, cafes and bars, as well as collaborating to create social and environmental impact.
“We aim to cut our water intensity by 50 percent by 2030 from a 2008 baseline,” said Hand. “We’ve made significant progress towards these targets, and based on our latest reporting, we’ve reduced our emissions intensity by 45.1 percent and reduced our water use intensity by 26.5 percent across our managed portfolio of hotels.”
However, the transition to water efficiency is not just about conservation; it also involves redefining luxury. Hotels have the potential to reduce their water usage by providing ongoing training to staff that emphasizes the importance of water conservation.
The shift toward water efficiency in hotels goes beyond economics; it represents a commitment to a greener, more sustainable future for the hospitality sector and our planet. Associations like AAHOA and the American Hotel & Lodging Association play a crucial role in strengthening this sustainability push.
"The hotel industry plays a crucial role in reducing water usage by implementing water-efficient practices in core areas like laundry, food and beverage, and landscaping," AHLA said in its website. "We prioritize water conservation without compromising comfort. Our members are measuring their water consumption and adopting practices that save millions of gallons annually. Many have installed high-efficiency toilets, showerheads, and faucets that use at least 20 percent less water than standard models while saving energy and performing as well or better.”
According to AHLA, guests are participating in linen and towel reuse programs, which help cut down on laundry, conserving water and energy. These programs have a notable effect, given that laundry uses up 16 percent of a hotel's water consumption.
AHLA said water use is further minimized through practices such as water-smart landscaping, efficient irrigation, leak detection and repair, and efficient pool maintenance. Moreover, some hotels are implementing greywater recycling and rainwater harvesting technologies to reuse water.
Energy efficiency
The entrance of the historic Hilton Hotel in downtown Washington DC. Founded in 1919 by Conrad Hilton, Hilton is a chain of hotels with almost 4,000 locations around the globe. Image Courtesy: iStock Photo
Energy efficiency in the hospitality industry influences guest satisfaction. Prioritizing sustainability and investing in energy-saving measures not only aids decarbonization but also enhances the guest experience. Energy management systems, like smart HVAC and lighting controls, adjust to occupancy and preferences, ensuring ideal conditions while reducing consumption. This attention to detail leaves a lasting impression on guests, encouraging them to return or recommend the hotel. Focusing on energy efficiency allows hotels to advance sustainability and boost guest satisfaction.
"Hilton works closely with property owners and operators to raise awareness of available renewable technology and connect them with local renewable energy incentives," said Hand. Across the Hilton portfolio, many hotels are investing in both onsite and offsite power. Seven managed properties in the U.S. have opted to purchase 100 percent renewable energy during their procurement contract renewals. These agreements enable properties to purchase renewable power when onsite installations are not feasible.”
Hotel Marcel in New Haven, Connecticut, operates on 100 percent renewable electricity, making it fossil-fuel free. Similarly, the Hilton Garden Inn Faroe Islands uses renewable energy from a local plant that captures leftover energy from various industries. Hilton Vienna Park also uses 100 percent electricity generated by a local hydropower plant. It features a Room Energy Management System, solar window foil to reduce energy waste, and energy-efficient lighting. For the past decade, it has been recognized for its sustainability efforts and awarded the Austrian Eco Label certification, the first national eco-label for tourism worldwide.
The Hyatt Regency hotel shot from the Congress Street Bridge spanning the Colorado River directly across from the downtown skyline of Austin, Texas. Image courtesy: iStock Photo
Electricity accounts for 58.9 percent of hotel utility costs, increasing at a CAGR of 3.7 percent from 2019 to 2023. Smart technology can reduce energy use while maintaining guest comfort. Most electricity in the hospitality sector is used for space cooling and lighting, with lighting alone consuming 20,910 gigawatt-hours annually. Energy-intensive water heating systems underscore the need for efficient solutions and water conservation practices to enhance sustainability in hotels.
“We support innovation to make this transition possible,” said Hand. “Our investment in Fifth Wall’s climate technology fund keeps us at the forefront of sustainability. LightStay, our award-winning sustainability management platform, is used by over 7,600 properties worldwide to measure and manage environmental and social impact. It tracks energy, water, and waste usage, providing insights and best practices to reduce consumption and waste. Since 2009, our hotels have saved over $1 billion in utility costs through LightStay.”
The World Travel & Tourism Council's Hotel Sustainability Basics initiative, which helps hoteliers improve their sustainability ratings, recently surpassed 1,700 verified hotels across 70 countries. Hotel groups from France, China, Mexico, India, Germany, South Africa, the Philippines, and Norway have joined the initiative.
The Trump administration says it is reviewing more than 55 million visa holders.
Reviews cover a wide range of visas for law enforcement and overstay violations.
The administration also suspended worker visas for foreign commercial truck drivers.
THE TRUMP ADMINISTRATION is reviewing more than 55 million people who hold valid U.S. visas for potential violations. It is expanding a policy of “continuous vetting” that could result in revocation and deportation.
The State Department confirmed all visa holders are subject to ongoing review, which includes checking for overstays, criminal activity, threats to public safety or ties to terrorism. Should violations be found, visas may be revoked, and holders in the U.S. could face deportation, according to the Associated Press.
Officials said the reviews will include monitoring of visa holders’ social media accounts, law enforcement records and immigration files. New rules also require applicants to disable privacy settings on phones and apps during interviews. The department noted visa revocations since President Trump’s return to office have more than doubled compared to the previous year, including nearly four times as many student visas.
The administration also announced an immediate halt on issuing worker visas for foreign commercial truck drivers, with Secretary of State Marco Rubio citing road safety and competition concerns for U.S. truckers.
“The increasing number of foreign drivers operating large tractor-trailer trucks on U.S. roads is endangering American lives and undercutting the livelihoods of American truckers,” Rubio posted on X.
The Transportation Department linked the move to recent enforcement of English-language proficiency requirements for truckers, aimed at improving safety. The State Department later said it was pausing visa processing while it reviewed screening protocols.
Critics, including Edward Alden of the Council on Foreign Relations, warned the actions could have significant economic consequences.
“The goal here is not to target specific classes of workers, but to send the message to American employers that they are at risk if they are employing foreign workers,” Alden wrote, according to AP.
Data from the Department of Homeland Security shows there are 12.8 million green card holders and 3.6 million temporary visa holders in the United States. The 55 million figure under review includes many outside the U.S. with valid multiple-entry tourist visas.
Earlier this week, the State Department reported revoking more than 6,000 student visas for violations since Trump returned to office, including around 200 to 300 for terrorism-related issues.
The vast majority of foreign visitors require visas to enter the U.S., with exceptions granted to citizens of 40 countries under the Visa Waiver Program, primarily in Europe and Asia. Citizens of China, India, Russia and most of Africa remain subject to visa requirements.
A $250 Visa Integrity Fee in President Donald Trump’s Big Beautiful Bill drew criticism from groups that rely on seasonal workers from Latin America and Asia on J-1 and other visas.
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Peachtree Group originated a $176.5 million retroactive CPACE loan for a Las Vegas property.
The deal closed in under 60 days and ranks among the largest CPACE financings in the U.S.
The company promotes retroactive CPACE funding for commercial real estate development.
PEACHTREE GROUP ORIGINATED a $176.5 million retroactive Commercial Property Assessed Clean Energy loan for Dreamscape Cos.’s Rio Hotel & Casino in Las Vegas. The deal, completed in under 60 days, is its largest credit transaction and one of the largest CPACE financings in the U.S.
The 2,520-room Rio, now under the Destinations by Hyatt brand, was renovated in 2024 and comprises two hotel towers connected by a casino, restaurants and retail, Peachtree said in a statement.
“This transaction is a milestone for Peachtree Group and a testament to the ecosystem we have built over the past 18 years,” said Greg Friedman, Peachtree's managing principal and CEO. “Through our vertically integrated platform, deep expertise and disciplined approach, we have developed the infrastructure to be a leader in private credit. Our ability to deliver speed, creativity and certainty of execution positions us to provide capital solutions that create value for our investors and partners across market cycles.”
Atlanta-based Peachtree is led by Friedman; Jatin Desai as managing principal and CFO and Mitul Patel as principal.
The CPACE loan retroactively funded the renovations, allowing the owners to pay down their senior loan, the statement said. The property improvement plan included exterior work, upgrades to the central heating and cooling plant, electrical infrastructure improvements and convention center renovations.
Jared Schlosser, Peachtree’s head of originations and CPACE, said the deal marks an inflection point, with major financial institutions consenting to its use for the benefit of the capital stack.
“By closing quickly on a marquee hospitality asset, we were able to strengthen the position of both the owner and its lenders,” he said.
The CPACE market has surpassed $10 billion in U.S. originations in just over a decade, according to the C-PACE Alliance, with growth expected as more institutional owners and lenders adopt it.
“We see significant opportunity for retroactive CPACE and its use in funding new commercial real estate development,” Schlosser said. “It is an alternative to more expensive forms of capital.”
In June, Peachtree named Schlosser head of originations for all real estate and hotel lending and leader of its CPACE program. Peachtree recently launched a $250 million fund to invest in hotel and commercial real estate assets mispriced by capital market illiquidity.
Spark acquired the 120-key Home2 Suites by Hilton Wayne in Wayne, New Jersey.
Hunter Hotel Advisors facilitated the transaction with DC Hospitality Group affiliates.
The 2020-built hotel is near William Paterson University and less than 20 miles from Manhattan.
SPARK GHC RECENTLY acquired the 120-key Home2 Suites by Hilton Wayne in Wayne, New Jersey, from affiliates of DC Hospitality Group. Hunter Hotel Advisors facilitated the deal for an undisclosed amount.
The 2020-built hotel is less than 20 miles from Manhattan in a commercial corridor with major employers including Driscoll Foods, FedEx Group, Advanced Biotech, St. Joseph’s Wayne Hospital, and the Passaic County Administration, Hunter said in a statement. William Paterson University, Willowbrook Mall, and MetLife Stadium are also nearby.
It features an on-site fitness center, business center and indoor pool.
“The Home2 Suites by Hilton Wayne represents the type of asset we target,” said Patel. “Its proximity to major corporate demand generators, higher education institutions, and retail and entertainment venues supports strong performance.”
Hunter’s senior vice presidents, David Perrin and Spencer Davidson, brokered the transaction.
Patel said this is their second transaction with Hunter and praised the process and partnership.
“We look forward to building on the hotel’s recent performance and continuing to deliver guest experiences in the Greater New York City community,” he said.
Northstar Hotels Management recently acquired a 78-key Residence Inn and an 81-key Courtyard near the Jacksonville, Florida, airport.
Global pipeline hit a record 15,871 projects with 2.4 million rooms in Q2.
The U.S. leads with 6,280 projects; Dallas tops cities with 199.
Nearly 2,900 hotels are expected to open worldwide by the end of 2025.
THE GLOBAL HOTEL pipeline reached 15,871 projects, up 3 percent year-over-year, and 2,436,225 rooms, up 2 percent, according to Lodging Econometrics. Most were upper midscale and upscale, LE reported.
The U.S. leads with 6,280 projects and 737,036 rooms, 40 percent of the global total. Dallas leads cities with 199 projects and 24,497 rooms, the highest on record.
LE’s Q2 2025 Hotel Construction Pipeline Trend Report showed 6,257 projects with 1,086,245 rooms under construction worldwide, unchanged in project count and down 3 percent in rooms from last year. Projects scheduled to start in the next 12 months totaled 3,870 with 551,188 rooms, down 3 percent in projects but up 1 percent in rooms. Early planning reached 5,744 projects and 798,792 rooms, up 10 percent in projects and 9 percent in rooms year-over-year.
Upper midscale and upscale hotels accounted for 52 percent of the global pipeline, LE said. Upper midscale stood at 4,463 projects and 567,396 rooms, while upscale reached 3,852 projects and 655,674 rooms. Upper upscale totaled 1,807 projects and 385,396 rooms, and luxury totaled 1,267 projects and 245,665 rooms, up 11 percent year-over-year.
In the first half of 2025, 970 hotels with 138,168 rooms opened worldwide. Another 1,884 hotels with 280,079 rooms are scheduled to open before year-end, for a 2025 total of 2,854 hotels and 418,247 rooms. LE projects 2,531 hotels with 382,942 rooms to open in 2026 and 2,554 hotels with 382,282 rooms to open globally in 2027, the first time a forecast has been issued for that year.
HAMA is accepting submissions for its 20th annual student case competition.
The cases reflect a scenario HAMA members faced as owner representatives.
Teams must submit a financial analysis, solution and executive summary.
THE HOSPITALITY ASSET Managers Association is accepting submissions for the 20th Annual HAMA Student Case Competition, in which more than 60 students analyze a management company change scenario and provide recommendations. HAMA, HotStats and Lodging Analytics Research & Consulting are providing the case, based on a scenario HAMA members faced as owner representatives.
Student teams must prepare a financial analysis, a recommended solution and an executive summary for board review, HAMA said in a statement.
“Each year, the education committee looks forward to the solutions that the next generation of hotel asset managers bring, applying their own experiences to issues in ways that reveal new directions,” said Adam Tegge, HAMA Education Committee chair. “This competition demonstrates that the future of hotel asset management is in good hands.”
The two winning teams will each receive a $5,000 prize and an invitation to the spring 2026 HAMA conference in Washington, D.C. HAMA will cover travel and lodging.
Twenty industry executives on the HAMA education committee will evaluate submissions based on presentation quality, the statement said. HAMA mentors volunteer from September through November to assist teams seeking feedback and additional information. Schools will select finalists by Jan. 15, with graduate and undergraduate teams reviewed separately.
The competition has addressed topics in operating and owning hospitality assets and HAMA consulted university professors to update the format for situations students may encounter after graduation, the statement said.
This year’s participants include University of Denver, University of Texas Rio Grande Valley, Boston University, Florida International University, Michigan State University, Columbia University, Morgan State University, Howard University, New York University and Penn State University.