“It is a done deal.” That’s what American Hotel & Lodging Association (AHLA) President & CEO Chip Rogers told me regarding the formation of a joint venture company that will own and operate the Green Key Global certification program in the United States and Canada. A letter of intent was signed by AHLA and the Hotel Association of Canada (HAC) to form the new company. The announcement was made at the Lodging Conference in Phoenix.
When I first launched Green Lodging News in 2006, and even before, the question of why there is not one green hotel certification program that every brand can get behind was often asked. At that time, AHLA hesitated to get behind any of the programs that were out there. In fact, there are still numerous certification programs operating but this new joint venture has the potential to generate the momentum that no other program has been able to so far. Yes, LEED has certainly caught on in our industry but what AHLA and HAC are creating is different—a program that every property can afford, one that the brands can all get behind of, one that is operations focused, and one that can be aggressively marketed.
Rogers says he and Susie Grynol, President & CEO of HAC, have been talking about the joint venture idea for several years but those discussions paused during the pandemic. The challenge discussed was how to take HAC’s successful Green Key Global program in Canada to the U.S. Green Key Global has been here in the U.S. for years but not in great numbers. Some states, for example, have no or very little representation. Florida, with its huge number of hotels, has only about 25 properties certified by Green Key Global. There just has not been a powerful enough entity to build Green Key Global recognition within the U.S. industry or among consumers.
Pending all necessary approvals, AHLA and HAC will form the joint-venture company in early 2024. It will build upon AHLA’s Responsible Stay initiative, launched in December 2022, which aligned AHLA member companies’ commitment around four key pillars of sustainability: energy efficiency, water conservation, waste reduction, and responsible sourcing. Green Key Global already had a solid emphasis on reductions in utility consumption, waste, emissions, and operating costs. Also within the Green Key Global Eco-Rating Program: recommendations for employee training, staff and customer engagement, supply chain management, community involvement and more.
Some ‘Major Global Brands Fully on Board’
As mentioned, getting the brands behind the program is key. Rogers told me, “Rest assured, there are major global brands fully on board. So many of the larger brands want a global solution. We can offer that.”
Rogers said the office for the joint venture will most likely be in the U.S. and the new company will have its own employees. There are still specifics to be worked out—the fee structure for the certification, for example. The current Green Key Global says it conducts on-site audits of about 20 percent of its certified properties each year. Rogers says on-site audits “will still be available” as part of the new company. “We believe there is a lot more that can be done from a virtual sense,” he added.
Rogers says the growing importance placed on sustainability in consumer purchasing decisions has made the timing of the joint venture just right. Already having its Responsible Stay initiative has also helped. “We knew that third party certification would be one part of the Responsible Stay Initiative,” he says.
It will be exciting to watch the progression of this new venture in the months ahead. Which major brand or brands will commit to Green Key Global certification first?
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