LAS VEGAS—Participants in day two, the final day of the UNLV & JMBM Hotel Developers Conference here at the Green Valley Ranch Resort & Spa, heard from experts in finance, mixed-use developments, government programs and regulations, green hotel operations, and the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) Green Building Rating System.
Kip Richardson, Director of Business Development for Ankrom Moisan Associated Architects, kicked off the day of educational sessions with a presentation entitled, “Beyond LEED: The Cutting Edge of Sustainable Design.” Richardson described some of the reasons why it is important to take a sustainable approach to hotel design and construction. By some accounts, we have just 10 years to get our environment turned around, he said.
Richardson provided a glimpse into the future of hotel design, saying that within five years, hotel buildings may produce more energy than they consume and consume more waste than they produce. These “living” buildings will capture and treat rainwater and have zero net impact on the environment.
“We need to stop thinking about buildings as machines and start thinking about them as living parts of the ecosystem,” Richardson said.
Panelists Address Hotel Financing
In a session on “Underwriting and Financing the ‘Green Value’ Premium,” panel participants addressed the current lending environment and whether or not lenders favor green developments in any way.
“There has been a huge change in investor interest,” said Scott Muldavin, President, Muldavin Company, Inc. “Investors have gone from being barely interested to very interested.”
Jim O’Shaughnessy, Senior Vice President, Acquisitions & Development Hotel Group for Cornerstone Real Estate Advisors LLC, said, however, that a building’s green attributes has not come up for discussion in transactions with which he has been involved. That said, there is increasing awareness that sustainability is important, he added.
While “green” may be the current hot trend, it will not trump other value-determining business fundamentals such as location and brand identity, panelists said. Being a green hotel developer does not necessarily guarantee funding success.
“Before you can be a green hotel developer, you have to be a hotel developer who knows how to get a deal done,” Muldavin said.
The Upside to Green Mixed-Use Projects
In a session entitled, “Bringing Green Technologies, Concepts and Approaches to Resort and Mixed Use, panelists summarized their current projects and generally agreed that mixed-use developments offer more income potential to developers because more dollars can be gained per square foot for the residential component.
“A green strategy works much better in mixed-use,” said Russell Dazzio, Co-Chairman, R&R Global Hospitality Group. “You get the same benefits of other green projects—e.g., lower operating costs and improved employee productivity—but you also benefit from the higher value per square foot.”
Experts in climate change and government regulations and programs addressed some of the current trends. Catherine Holmes, Partner, Corporate Department with Jeffer, Mangels, Butler & Marmaro LLP (JMBM), said a number of cities have adopted building codes that in some cases include limits on greenhouse gas emissions.
“There are a number of calls for greater transparency in tracking the energy efficiency of existing buildings,” added Stuart Brodsky, National Program Manager for Commercial Properties for the EPA’s Energy Star program.
Kellee James, an economist with the Chicago Climate Exchange, explained how that organization’s carbon credit trading program works. Simply put, those building owners who exceed efficiency targets can sell their carbon credits on an open market to those companies that have not been as successful in reducing their own greenhouse gas emissions.
James advised hotel owners to use programs like LEED or Energy Star to put themselves in a favorable position for the day when reporting carbon emissions becomes mandatory.
“We are all going to be required to reduce our energy consumption,” JMBM’s Holmes said. “Why wait for the regulations?”
Panelists Share Lessons Learned
During one of the conference’s final sessions, several architects and one hotel manager shared the lessons they have learned in their pursuit of green hotel design and management.
LEED is not something you should jump into after a new project is already underway, said Lynn Simon, President, Simon & Associates, Inc.
“A decision needs to be made early on to get you to the higher levels of green,” she said. “You have also got to find designers who are committed to sustainability and who are knowledgeable of green materials.”
Gerry Link, general manager of the Hilton Vancouver Washington, said that before pursuing LEED certification, it is critical to get the backing of your hotel brand, as well as the hotel’s owners. LEED is just the beginning, Link said. To ensure that his hotel operates in a green fashion over the long term, he is currently pursuing Green Seal certification. When the hotel reaches that goal, the Hilton Vancouver Washington will be the first hotel in the United States to be both LEED and Green Seal certified.
Even though getting LEED certification cost Hilton Vancouver Washington ownership more than $100,000, Link said the property’s green efforts have resulted in $3 million in new meetings business.
Glenn Hasek can be reached at editor@greenlodgingnews.com.
