NEW YORK—Industry experts chimed in on the state of the lodging industry and panel discussions provided valuable insights into green building design and operations at this year’s International Hotel/Motel & Restaurant show held at New York’s Jacob K. Javits Convention Center. The event wrapped up on Tuesday, November 13.
The lodging industry had a good year in 2006, said Mark V. Lomanno, president of Smith Travel Research, with 75,000 new hotel rooms added to U.S. inventory (net growth of 10,000 rooms). There are currently 200,000 hotel rooms under construction. The luxury and mid-scale without food and beverage segments are experiencing the most growth. In fact, there are 50 percent more luxury rooms today when compared to the year 2000.
“Since 2000, consumers are spending twice as much money in the luxury and mid-scale without f&b segments,” Lomanno said.
For the first time in the history of the lodging industry, the average U.S. room rate surpassed $100 in 2007, he added.
Bruce Ford, senior vice president of Lodging Econometrics, said 98,000 new hotel rooms will be added to U.S. inventory this year and there are currently 5,200 new hotels in the pipeline—a little less than 700,000 rooms. The hottest U.S. location is Las Vegas with 44,000 rooms under development. Outside the United States, Dubai leads all cities with 148 hotel projects underway (51,215 rooms).
Shifflet, Yesawich: Not All is So Rosy
Douglas K. Shifflet, president and CEO, D.K. Shifflet & Associates, Ltd., countered the mostly optimistic U.S. hotel development picture by stating that gas prices are driving leisure travelers to stay closer to home. Consumers, who have experienced only a 1 percent rise in household income the last six years, are also being squeezed by sub-prime mortgage problems. Hotel rates are also rising faster than hotel product improvements.
Peter Yesawich, Ph.D., chairman and CEO of Ypartnership, said, “We are headed for some interesting times” because of Americans’ growing debt problems. Forty-six percent of Americans carry $12,000 in credit card debt and in 11 of the 12 months in 2006, the savings rate of Americans was negative.
Green Panel Summaries
At a session entitled, “Going Green Initiative,” Lyndall De Marco, executive director, International Tourism Partnership, provided a general overview of the lodging industry’s green status.
“No one has a greater investment in this planet than this industry,” De Marco said. “We have come a long way in the last year.”
De Marco discussed the operational upside to going green while also emphasizing the importance of doing so in a legitimate manner—without “greenwashing.”
“Just buying a certificate does not make you green,” she said.
Cliff Tuttle, senior vice president of Forrest Perkins, provided a designer’s insight into the penetration of green into lodging.
“It’s time for us to rethink hotel design strategies,” Tuttle says. “Luxury travelers are looking for sustainable strategies. Designers are the ones who will be making these changes. If you can do it for the same cost, why not do it. Using natural, sustainable materials is something we can do.”
In a session entitled, “Green Building: LEED and Beyond,” Fiona Cousins, principal, Arup, talked about the reasons why green building is important. She said U.S. buildings account for 12 percent of water use, 30 percent of greenhouse gas emissions, 65 percent of waste output, and 70 percent of electricity consumption. Those buildings built to Leadership in Energy and Environmental Design (LEED) standards can achieve 30 percent energy savings, a 35 percent reduction in carbon emissions, 30 to 50 percent reduction in water consumption, and 50 to 90 percent reduction in waste.
How much more do green buildings cost? Planned properly, they need not cost more but in general she said those buildings built to LEED platinum standards cost 6.8 percent more, gold, 2.2 percent, silver, 1.9 percent, and certified, the lowest rung on the LEED rating ladder, .66 percent.
Wen-I Chang, president, Atman Hospitality Group, offered some insights based on his development of the Gaia Napa Valley Hotel & Spa in American Canyon, Calif., and Kip Richardson, business development director with Ankrom Moisan Architects, talked about going beyond LEED and creating living, sustainable buildings—structures that have a net positive impact on the environment. These types of buildings will produce the energy they need and even incorporate gardens to grow produce that can be consumed on-site.
The green building session was moderated by Tony Longhurst, principal, Sustainable Hospitality Group.
Focus on Green Operations
In the session entitled, “Greening Operations: How to Run a More Profitable Enterprise Without Compromising Guest Satisfaction,” Matthew Moore, director of rooms at the Seaport Hotel in Boston, explained the different ways his hotel has saved energy, reduced waste and successfully lured new meetings business thanks to a series of green initiatives.
Rauni Kew, marketing and green program director at the Inn by the Sea in Cape Elizabeth Maine, discussed the different ways that inn has used its green programs as a marketing and public relations tool. She encouraged session attendees to make programs fun and involve both the community and employees. Steve Pinetti, senior vice president, sales and marketing for Kimpton Hotel & Restaurant Group, LLC, described how Kimpton has increased its profitability by continuously improving its EarthCare program. Pinetti also touched on the importance of community involvement, specifically citing Kimpton’s involvement with The Trust for Public Land.
Glenn Hasek can be reached at editor@greenlodgingnews.com.
