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Too Good to Be True? Not at All, as Some Hotels are Discovering

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Last year I had a client who was touting a system that offered a five-year payback period. In this day and age, is that good enough? There are certainly lodging operators who have the patience to wait that long or longer for a return on their investment but my suspicion is that most prefer a quick ROI with as little capital as possible upfront. I recall one conference session on energy management at which I was a speaker and one of the attendees—a hotel owner—insisted on a one-year payback or less for any investment he made in energy management. On the patience spectrum, where do you fall when it comes to ROI?

I was thinking about this because there were two examples in the news this past week of vendors installing solar systems as part of a power purchase agreement (PPA) that required no capital investment at all from the hotels’ owners. The first example, currently on our website, involves the Hampton Inn of Hendersonville, N.C., and the installation of 24 solar thermal collector panels on the roof of the hotel. The vendor in this case, FLS Energy, will own the system and sell the hotel the energy it needs to heat water at a lower rate than it currently pays for fossil fuels. As part of this PPA, the hotel expects to save roughly 20 percent on its costs to heat water. Not a bad deal.

The second example is one that I refer to in my recent blog and one that I will be writing about for the Green Lodging News website this coming week. It involves the Wyndham Philadelphia-Mount Laurel Hotel and its very impressive 756-kilowatt solar installation in the parking area of the hotel. A total of 3,150 solar panels will sit on 10 carports that were newly built to support the panels. Once again, the hotel’s owner paid no upfront costs—not even for the carports that had to be built. The hotel’s owner signed the PPA Agreement with US Solargy, Inc., which was responsible for securing the financing and development of the solar system. US Solargy placed the PPA with Solar Max Technology which financed and developed the system. Solar Max Technology will sell electricity from the system to the hotel’s owner at a guaranteed rate for 15 years. The rate will only change with inflation. The solar installation is expected to provide 50 percent of the electricity needed by the full-service hotel. Kind of hard to say no to an arrangement like that, isn’t it?

PPAs are certainly becoming more common as governments at various levels offer incentives that make PPAs worthwhile for the vendor.

Always Ask About Financing Options

If your cash flow is tight and you are thinking about renewable energy, my advice to you is to talk to your local vendor about available financing options. You just might be surprised about how easy it is to reduce your costs and your carbon impact. Don’t stop at just renewable energy when it comes to asking financing questions. Energy management system suppliers and even some amenity dispenser vendors are offering lease options that remove intimidating upfront costs.

If you are a supplier and offering financing options that make it a no brainer to go green, I would love to hear about it. And, if you own or operate a lodging establishment and have had success with a no upfront cost or lease arrangement, I would also love to learn about it. I can be reached at (440) 243-2055 or by e-mail at editor@greenlodgingnews.com.

GLN Adds Enagic Kangen Water as Directory Partner

Green Lodging News welcomes Enagic Kangen Water as a Green Product & Service Directory partner. Enagic Kangen Water makes a machine that produces five different grades of electrolyzed water for drinking, cleaning, sanitizing and food preparation. It has been approved by U.S. regulators and the Water Quality Assn. (WQA) has given it its Gold Seal and ISO Certification. Call Bill Norse at (626) 665-5213 for more information and a DVD, e-mail bnorse713@msn.com, or visit www.checkoutkangen.com.

Looking for Guest Columnists

Every two weeks Green Lodging News posts a new guest column on its website. (Click here for examples.) The guest column also appears in the weekly e-newsletter. Green Lodging News is currently in need of industry experts to contribute occasional guest columns. Experts may include consultants, architects, designers, suppliers and those who own or operate green lodging establishments. Columns may be articles that take a stance on a particular subject or be strictly educational in nature. Columnists benefit by having their photo included along with a one paragraph description of their company. Interested in writing a column? Contact Glenn Hasek, publisher and editor, at (440) 243-2055, or by e-mail at editor@greenlodgingnews.com.

Planning Advertising for 2012?

Green Lodging News is accepting reservations for advertising spots for 2012. Many excellent spots are available on the website and in the weekly e-mail newsletter. Many Green Supplier Spotlight dates are also available. Interested in receiving a 2012 media kit? Be sure to contact me as soon as possible at (440) 243-2055, or by e-mail at editor@greenlodgingnews.com. A media kit can also be accessed by clicking here. Thank you to all of those companies that consistently support Green Lodging News.

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As always, I can be reached at editor@greenlodgingnews.com.

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