Home Energy Management Sustainability Report Highlights Hersha Hospitality Trust’s EarthView Success

Sustainability Report Highlights Hersha Hospitality Trust’s EarthView Success

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PHILADELPHIA—It was just a year ago that Hersha Hospitality Trust released its first Sustainability Report. Last month, Jay Shah, CEO of the lodging REIT, announced the release of the company’s second Sustainability Report. According to Bennett Thomas, Senior Vice President of Finance and Sustainability for Hersha, it is one of only a few lodging REITs to issue a sustainability report. “Hersha is one of the few lodging REITs that report on sustainability,” Thomas says. Hersha’s second report reflects the activities of its 55 owned hotels.

Last year was another strong year for sustainability accomplishments for Hersha. For the third time in four years, EarthView was awarded NAREIT’s Lodging & Resorts Leader in the Light award for superior and sustainable portfolio-wide energy use practices and sustainability initiatives. Hersha’s performance last year is a continuation of its EarthView program that was launched in 2010. EarthView takes a triple bottom line approach to sustainable hospitality—implementing sustainable and innovative practices that benefit the environment, local and global communities, and positively impact a hotel’s financial performance.

As of year-end 2015, Hersha had recorded $4.8 million in savings from energy initiatives implemented across its portfolio (baseline year 2010). Energy conservation initiatives have resulted in a decrease in carbon emissions by 16 percent per occupied room. Thomas says the rollout of guestroom energy management systems (EMS) across the portfolio has had significant impact. Twenty-eight hotels had an EMS installed in 2015. With an initial capital investment of $2.1 million, and annual savings of approximately $1 million, the payback period for these systems is just over two years. LED lighting is also making a significant impact. Ninety-six percent of the portfolio has been fitted with LEDs. A total of $1.1 million was spent on LEDs last year. With annual electricity savings of just under $800,000, the payback period is approximately 1.5 years.

Solar Installation in Coconut Grove

One example of a successful larger-scale initiative is a 336-solar panel installation at the Residence Inn Coconut Grove in Florida. Matthew Lobach, Director, Finance & Sustainability for Hersha, says he has been very pleased with its operation. “It was the perfect storm of opportunity,” Lobach says. “We were undergoing renovations and there were incentives. We are saving 10 percent of total hotel electricity usage.”

Thomas says Hersha is currently exploring combined heat and power systems and additional solar. It is also looking to expand upon its current half-dozen or so electric vehicle charging stations.

Hersha has reduced water consumption across its portfolio by 8 percent in comparison to 2010—equivalent to 57 million gallons. Implementation of items such as aerators, water control valves and new irrigation systems are having a significant impact. The EcoLab Aquanomic Laundry program was implemented across all hotels with in-house laundry. This system has helped hotels reduce costs of natural gas and water associated with laundry cycles by 13 percent by utilizing cold water and shorter washing times.

Hersha has reduced waste sent to landfills across its portfolio by 45 percent in comparison to 2010—the equivalent of 150,000 cubic yards or 19,000 dumpsters. Lobach says the rollout of recycling programs throughout the portfolio in 2011 continues to make a difference. “We are recycling all the old CFLs,” Lobach says. Hersha endeavors to use products that have recycled content wherever possible and works with contractors to donate, reuse, or recycle any furniture, carpet, and other materials which would otherwise be discarded in a renovation.

One of First to Donate to Clean the World

In 2015, Hersha donated 21,000 pounds of soap and bottled amenities to Clean the World, which translates to more than 58,000 new bars of life-saving soap distributed to children and families in need. Last year 51,000 clothing items were donated by hotel clothing drives and $90,000 was raised for Autism Awareness.

In 2014, Hersha launched a program to raise money for its global neighbors in need by creating a private label water bottle that is sold throughout the Independent Collection, “IC” hotels. The bottles are made from 100 percent recycled material and are 100 percent recyclable. For each bottle purchased by a guest, $1 is donated to clean water projects around the world. Lobach says there are currently 10 hotels participating with another several that have signed up to participate. More than $23,000 has been raised so far.

The success of EarthView is due to the many employees who embrace the program. One example is Hersha’s Regional Director of Engineering, Dave Campbell. He was just awarded a prestigious EBIE award—an award given by the U.S. Green Building Council. It is part of a juried competition that celebrates sustainability in existing buildings and the people and organizations behind these improvements.

Education Begins Upon Hire

Associates are first introduced to EarthView during their initial orientation upon hire. Larger hotels have “EcoLeader” teams that meet regularly to discuss results and opportunities at their hotel. Hersha has implemented a sustainability resource center on its internal intranet page where associates can access training materials, learn how to implement various initiatives, and share ideas.

All of Hersha’s hotels owned for more than one year are certified under TripAdvisor’s GreenLeaders program. This program allows Hersha to share each hotel’s green practices with guests who are interested in booking a green stay. Lobach says last year almost 800 comments were posted on TripAdvisor regarding green practices at Hersha hotels.

“It’s been fun to see the growth year over year of EarthView,” Thomas says. “We continue to be proud of the program. We estimate it will add $50 million to our hotels’ value.”

Go to Hersha Hospitality Trust.

Glenn Hasek can be reached at editor@greenlodgingnews.com.

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