BETHESDA, MD.—For many years Host Hotels & Resorts has been recognized for its ongoing sustainability leadership, and justifiably so. It was the first hospitality company and one of the first 20 companies globally to have its greenhouse gas (GHG) emissions target approved by the Science Based Targets initiative (SBTi).
“[SBTi] is very important,” says Michael Chang, Vice President of Energy and Sustainability for Host Hotels & Resorts. “It is prioritized by the investor community. It signals that your goals are credible.”
Of its portfolio of 77 hotels, 11 are LEED certified. “Our sustainable financing strategies enable our responsible investment in LEED-certified hotels…lowering our cost of capital,” said James F. Risoleo, CEO and Director of the Bethesda, Md.-based REIT, in the company’s 2023 Corporate Responsibility Report (see this page for download). Host has 22 LEED projects in the pipeline across 20 properties.
“We are the only lodging REIT to have a LEED program linked to our sustainable financing as we strive to own one of the most iconic, irreplaceable and sustainable portfolios in the industry,” Risoleo added.
New Targets for 2030
The company consistently adjusts its reduction targets. Its new 2030 targets, for example, are an evolution of ones set for 2025. Some examples of its 2030 targets include:
- 54 percent reduction of GHG emissions per square foot from a 2019 baseline;
- 50 percent of electricity use will be sourced from renewable sources;
- 25 percent reduction of water usage per occupied room in water stressed areas from a 2019 baseline;
- 50 percent of waste by volume with at least three waste streams from Host’s major renovation and redevelopment projects will be diverted from landfill; and
- 40 percent of consolidated hotels will achieve green building certification.
Host, which has a goal of becoming a net positive company by 2050, has made a significant investment in solar.
“Our solar program is part of our multipronged approach,” Chang says. “We have been doing solar projects for over 10 years now. We completed three projects last year in D.C. We are looking more at solar carports. Solar has helped drive down utility costs.”
While Host invests in technologies like solar, it remains focused on efficiency and is still taking bites out of low-hanging fruit—LED lighting, for example. “Last year we doubled our investment in LED lighting compared to 2022,” Chang says.
An Aging Portfolio
Most of Host’s portfolio consists of hotels that are approximately 30 years old, making any attempt at reaching low environmental impact that much harder but Host keeps working and investing toward that aim—even if it means taking a second look at what is the easier types of investments.
Many of the green initiatives are driven by the brands represented in its portfolio—Marriott is very well represented, for example—but a great number of sustainability steps are the result of Host’s core strategy. “Corporate responsibility will always be a cornerstone of Host’s values and business strategy,” Risoleo says.
Each Host property is surveyed each year on the top 20 ROI opportunities. “There is a very comprehensive list. We look at the GHG (greenhouse gas) intensity of each property,” Chang says. Years after investments are made, an ROI analysis is conducted.
From 2018 to 2022, Host invested in 620 sustainability projects that resulted in $20 million in expected utility savings annually and with an average cash-on-cash return of 15 to 20 percent.
Reducing Water Consumption
Part of every sustainable operations initiative is water conservation. “We continue to invest in low-flow fixtures and water-efficient kitchen equipment and irrigation equipment,” Chang says. “We have invested in laundry systems where the laundry water has been recycled.”
Host is looking at water monitoring, trying to identify leaks before they become problematic. “We often become aware of leaks a month after the fact,” Chang adds. “We are looking for partners in this space.”
Host was one of the first supporters of large-format amenities and all its properties now have them. To further reduce plastic waste, the company is putting in water stations. “We support the brands in reducing plastic bottled water waste,” Chang says.
Host Highlights Success Examples
Host’s portfolio is jam-packed with stellar examples of environmental performance. Snapshots of some of the environmental projects can be found on the company’s website. Regarding the 1 Hotel South Beach, Host states, “1 Hotel South Beach is at the forefront of leading-edge sustainability practices. Designed with biophilic design principles for both environmental and human health purposes, the hotel is LEED Silver-certified and was built using recycled materials—including reclaimed and repurposed wood from Alaska and Colorado. Energy and water consumption are monitored in real-time across the entire property. The hotel also employs compostable room amenities and reusable wooden key cards to support its Plastic-Free Initiative, as well as a composting machine to separate organic waste. Additionally, the hotel has partnered with Food Rescue US to donate leftover food from events to nearby shelters and Debris Free Oceans to help eradicate marine debris.”
Getting Suppliers on Board
For 2024 and beyond Host is pushing to train its direct suppliers in its responsible sourcing and human rights policies. The goal is for all direct suppliers to be trained by 2030. Also, by 2030, Host wants 90 percent of employees to participate in charitable giving and/or volunteerism, and 85 percent of employees to be highly engaged in diversity, equity, inclusion and belonging activities.
Host incentivizes improved third-party environmental performance through the payment of variable incentive management fees and an environmental stewardship award is given at its General Managers Meeting. At the 2022 Host General Managers Meeting, the JW Marriott Washington, DC was the recipient of Host’s Outstanding Performance in Environmental Sustainability Award, which included a financial award given to the management of the hotel.
For its efforts, Host has won many awards. Recently, for example, the company was named to Newsweek’s list of America’s Most Responsible Companies for the fifth year in a row. The final list for 2024 recognizes the top 600 most responsible companies spanning dozens of industries in the U.S. Host landed at spot #333 and is ranked #6 in the Hotels, Dining & Leisure industry category. In addition to being named one of America’s Most Responsible Companies, Host has also been included in Newsweek’s Excellence Index 2024. Host ranked at #47 overall, and #2 in the Hotel Companies industry category.
Additional information can be found in the January 8, 2024 Publisher’s Point of View column.
Glenn Hasek can be reached at greenlodgingnews@gmail.com.
