WASHINGTON, D.C.—In one respect, this year has been a good one for the Environmental Protection Agency (EPA) and its Energy Star for Hospitality and Entertainment program. In another respect, the year has not been so impressive. According to the EPA’s most recent report on Energy Star hotel benchmarking activity, as of July 2010 there were 5,262 hotels using the Energy Star Portfolio Manager to benchmark their energy performance. That is up from 3,123 buildings in 2007, 3,685 buildings in 2008, and 4,920 in 2009. Participating hotels are located in all 50 states, the District of Columbia, Puerto Rico and Guam. Hotel sizes range from 5,000 square feet to more than 2 million square feet. Not so impressive is the number of hotels that have earned the Energy Star label. That number has dramatically decreased from 2007 to 2010.
A close look at the EPA’s most recent list of Energy Star labeled hotels shows that just 19 hotels earned the Energy Star label in 2009, the same number as this year (as of December 1), even though 19 percent of hotels benchmarking (999 properties) were eligible for the label because of their high scores (at least 75 out of 100). The 2009 and 2010 numbers are down significantly from 155 in 2007 and 144 in 2008. Marriott International, which has consistently led all companies in the lodging industry with more than 200 Energy Star labeled properties, has had just two hotels earn the Energy Star label this year, according to the EPA (once again, as of December 1). Stephanie Hampton, senior director of corporate relations for Marriott, told Green Lodging News, however, that the company’s target is to have 75 hotels Energy Star labeled by the end of the year.
Why the sharp decline in the number of hotels actually getting the Energy Star label? According to Alyssa Quarforth, National Program Manager, Energy Star, Commercial Properties for the EPA, the label is an “extra” to the benchmarking process which requires payment of a professional engineer to verify the information and conduct a site visit before submitting the application to the EPA. Given the state of the industry the last couple of years, many hotel owners chose not to go through the labeling process.
Scoring Impacted by 2009 Update
Another reason for the decline is a February 2009 update of the model used to calculate scores in the one to 100 point scoring system. The newer model looks at the relationship between energy use per square foot and rooms per square foot, while the old model examined the relationship between total energy and total room count. After the model was updated, many hotels found it more difficult to achieve a score of 75 or higher—the benchmark for earning the Energy Star label. In fact, some hotels’ scores dropped by as much as 10 points. Energy Star scoring is based on the results of the Commercial Building Energy Consumption Survey (CBECS), a nationally representative survey conducted quadrennially by the Department of Energy’s Energy Information Administration. The current Portfolio Manager is based on 2003 data.
Pat Maher, partner, The Maher Group and a consultant to the American Hotel & Lodging Association, said what many hoteliers are concerned about is how the scoring system still seems to favor smaller, limited-service hotels and penalize larger hotels and resorts.
“The main issue is how one rating can apply to all hotel types,” Maher said. “It would be nice to have different levels.”
The EPA’s Quarforth disagreed with the notion that the Energy Star scoring system is biased against larger properties.
“We have not seen the trends they are talking about,” she says. “Large hotels are just as likely to earn a 75 as a small boutique hotel.”
Disagreement Over Marketing
Marriott’s Hampton says a requirement to market the Energy Star label as part of the label qualification process has been a roadblock for her company and an area where Marriott hotels have not scored well.
“They wanted us to put the Energy Star logo on key cards and on the folio to market the logo more,” Hampton says. “We work with a lot of different partners and it is challenging to decide which partners to market.”
Quarforth, however, said hotels are not required to use the Energy Star label in marketing. When earning the label, hotels are simply added to the label building registry. “There’s a lot of incorrect information going around,” she says.
To address issues of concern that are discouraging hotels from pursuing the Energy Star label, the American Hotel & Lodging Association’s Green Task Force is communicating with the EPA via conference calls. Two phone meetings have been held so far. The EPA has also released a “Frequently Asked Questions” document to address hotelier concerns.
Important Connection to LEED
The level of participation in the Energy Star for Hospitality and Entertainment program comes into question at a time when its importance is growing. The United States Green Building Council, as part of its LEED 2009 for Existing Buildings: Operations & Maintenance Rating System, requires hotel owners to use the EPA’s Portfolio Manager and earn an Energy Star rating of at least 69. To achieve points under “Energy & Atmosphere,” a hotel project must have a score of at least 71 (one LEED point). One can earn up to 18 points if a project achieves an Energy Star score of 95.
To help energize the Energy Star for Hospitality and Entertainment program, the EPA has adjusted its approach. In fact, the agency’s Quarforth says the EPA is in the early stages of partnering with state green lodging certification programs to expand participation.
“We are excited about our new state hospitality program audience because we feel these state programs play an important role in being able to channel information to hard-to-reach audiences like the independent hotel operators,” Quarforth says. “With that said, we are still very much engaged with our corporate partners and our work with associations.”
Some of the states that will be partnering with the EPA include Alaska, California, Connecticut, Hawaii, Kentucky, Los Angeles, Maine, Maryland, Michigan, North Caroline, Rhode Island, Tennessee and Virginia. In addition to Marriott International, some of the companies currently participating in benchmarking include Best Western International, Kimpton Hotel & Restaurant Group, Wyndham Worldwide, and Loews Hotels.
Information Required for Portfolio Manager
Quarforth says Portfolio Manager is “a great tracking tool” for tracking energy usage, water consumption, and greenhouse gas emissions. Those using Portfolio Manager are asked to enter information such as building square footage, energy consumption over the last 12 months, number of guestrooms, number of refrigeration and freezer units, percentage of property heated or cooled, etc. Those properties earning the Energy Star label are required to reapply for the designation annually.
Those interested in benchmarking using Portfolio Manager or pursuing the Energy Star label should first get buy-in at the executive level, Quarforth says. It does take time to collect utility data and enter it into Portfolio Manager. The benefits of participation are many.
“It is a great opportunity to educate all employees,” Quarforth says. “We have a whole slew of training resources available if needed—from recorded trainings to webinars to ‘how to’ guides.”
In addition to earning the Energy Star label, additional recognition opportunities include the Energy Star Leaders program and Energy Star Partner of the Year awards. Energy Star partners who demonstrate continuous improvement organization-wide, not just in individual buildings, qualify for recognition as Energy Star Leaders. Based on Portfolio Manager results, Energy Star Leaders must show portfolio-wide energy efficiency improvements of 10 percent, 20 percent, 30 percent, or more. Those companies with a portfolio of properties with an average rating of 75 or better are recognized as Top Performers.
Whether 2011 sees a turnaround in the number of hotel companies actually obtaining the Energy Star label remains to be seen. The EPA is still waiting on “new” 2007 CBECS data which will shape the next version of Portfolio Manager. For now, even as the total number of hotels using Portfolio Manager is increasing, the EPA definitely has some work to do to regain the confidence of those companies eager to sport the well-recognized Energy Star brand.
Go to Energy Star for Hospitality and Entertainment for more information.
Glenn Hasek can be reached at editor@greenlodgingnews.com.
