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Sustainability a Hot Topic of Conversation at This Year’s ALIS Event

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LOS ANGELES—Jim Burba, chair of this year’s Americas Lodging Investment Summit (ALIS), started the event this week by announcing that the travel of every one of the approximately 3,000 attendees would be offset by a donation to the Conservation Fund’s Go Zero program. That announcement set the tone for this year’s ALIS here at the Hyatt Regency Century City. Throughout the three-day event, green hotel development and operations most definitely were hot topics.

At the Hotel Leaders Outlook session, some of lodging’s leading executives were asked to give their take on the sustainability movement and whether or not it is here to stay. Monty J. Bennett, president and CEO of Ashford Hospitality Trust, said there is a fad part of it but there is also an economic and marketing aspect that is very viable.

“Customers are dictating it,” added Laurence S. Geller, president and CEO of Strategic Hotels and Resorts. “Every group is asking for it. Like it or not, you had better build green.”

On that note, in regard to green building, Mark S. Hoplamazian, president and CEO, Global Hyatt Corp., said the U.S. lodging industry is behind where it should be.

“The biggest thing we can do is raise the consciousness of our guests,” he said. “I believe this trend is something that is here to stay.”

Jay Rasulo, chairman, Walt Disney Parks and Resorts, cited a Travel Industry Assn. survey that found that 50 percent of individual travelers are more likely to book a hotel if it has green standards. Rasulo agreed with his fellow panelists regarding sustainability as a business practice.

“It is here to stay and we as an industry need to embrace it,” he said.

Chris Nassetta, president and CEO, Hilton Hotels Corp., said that if it is good for the environment, it is good for business.

“The investment community currently is becoming more sensitive to this issue,” he said. “Companies ahead in this area will be more attractive to investors.”

First of Several Green Panel Discussions

Green hotel development was highlighted on the first day of the event in a session entitled, “How to Develop a Green Hotel.” The well-attended session included presentations by Wen-I Chang, president, Atman Hospitality Group, Marty Collins, president/CEO of Gatehouse Capital Corp., and Mike Freed, principal and co-owner, Passport Resorts LLC. The session was moderated by Bill B. Reed, vice president, WATG.

Reed offered advice to those considering the development of a green hotel.

“Start out with an experienced team,” he said. “Produce an environmental impact study and look for products that are sourced locally. Minimize the impact on the building site as much as possible. Implement daylighting, employ building management systems, and consider on-site power generation. Use low-emitting materials and non-toxic cleaners.”

Chang, whose 133-room Gaia Napa Valley Hotel & Spa opened in American Canyon, Calif. in October 2006, said his second green hotel—the 133-room Atman Hotel—will open in Anderson, Calif. in March. The Gaia hotel, Chang said, had a cost premium of about 10 percent to 15 percent but his Atman Hotel will cost just 5 percent to 8 percent more than a “non-green” property.

Passport Resorts’ Freed talked about some of his company’s award winning properties—the Post Ranch Inn in Big Sur, Calif., and the Jean Michel Cousteau Fiji Islands Resort, among others.

“One of the key elements of green design is to work with the environment,” he said. “Take advantage of the landscape. See if there are existing buildings you can work with. Try to build where there were existing buildings.”

Freed highlighted some of the green elements of his company’s 40-room Post Ranch Inn. Guestrooms blend into the landscape and some guestrooms are elevated on stilts to protect the fragile root balls of nearby redwoods. Bamboo was used in the ceilings, furniture and cabinets. Insulation made from denim helps keep the inn energy efficient, and solar photovoltaic cells help meet the inn’s electricity needs.

LEED is Focus of Tuesday Session

In a session entitled, “How to Convert Your Property to a Green Hotel,” Marc Heisterkamp, manager, LEED, Corporate/Investment Real Estate Sector, U.S. Green Building Council (USGBC), summarized the current status of USGBC’s Leadership in Energy and Environmental Design (LEED) program. He indicated that the volume of all LEED projects, in square feet, grew from 35 million in 2002 to 3.2 billion in 2007. A very small percentage of that number is from hotels.

Heisterkamp said USGBC is currently working with the American Hotel & Lodging Assn. (AH&LA) to mold a version of LEED for Existing Buildings: Operations & Maintenance for lodging. He expects this to be done this year.

Dan A. Welborn, vice president/principal, Gettys, said any company pursing a green hotel should first determine whether or not LEED certification is attainable. If it is, assembling a team that includes ownership, architects, designers, the construction manager, energy specialist and commissioning agent early on is key.

“Going green midway through the process will not work,” says Welborn, who added that his company is currently working on two Chicaog hotel projects that will pursue LEED.

John P. Strozdas, COO, The Ambrose Group, LLC, explained how that company’s 77-room Ambrose Hotel has benefited from its pursuit of LEED certification. The hotel has reduced its water consumption by 20 percent, energy consumption by 30 percent, and is recycling 75 percent of its waste.

“[LEED] is an exhausting and trying process but an incredible team-building experience,” Strozdas said.

Chip Conley, CEO, Joie de Vivre Hotels, said that before going green, one should first determine whether to take a top down, or bottoms up approach. At many of his company’s hotels, it was hotel staff that came up with environmental policies, not company executives.

“Ask who your customers are and how valuable it is to them,” Conley advised. “You had better make sure you are walking your talk.”

Kathleen Matthews, executive vice president, global communications and public affairs, Marriott International, Inc., indicated that Marriott is working with several developers who are in pursuit of LEED certification for their projects—one is a Ritz-Carlton that will pursue LEED Platinum. Marriott is trying to make the LEED process easier for owners by increasing the number of LEED architects on its staff from eight to almost 50. Marriott’s goal is for each of its new projects to meet LEED standards by the end of this year.

Advice from Kimpton’s COO

In a session entitled, “How to Operate a Green Hotel,” Niki Leondakis, COO, Kimpton Hotel & Restaurant Group, LLC, said that Kimpton’s green approach to operations has resulted in new group business from companies such as Home Depot, Aveda and Microsoft. Advising those hotel leaders considering a green approach, Leondakis said to always test a new program before rolling it out to multiple properties. Also be sure to

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