When listening to hoteliers complain about increasing operating
expenses, chances are they are complaining about one of three costs
- insurance, property taxes or energy. While energy costs have
indeed been steadily on the rise since 1997, it was not until 2002
that energy expense increases outpaced the rise in overall departmental
and unallocated expenses. Total departmental and unallocated expenses
have risen at a compounded rate of 2.3% per annum since 1993, slightly
trailing energy costs, which increased by a compounded rate of
2.7% per year over the same period. An index of Canadian unit energy
prices, weighted by usage in the hospitality sector, indicates
that energy prices have risen at an average rate of 3.1% per year
over the past decade, with natural gas and other fuel prices largely
responsible for the increase.
Some
good news is exposed by the energy index comparison – Canadian
hotels and motels are becoming increasingly energy efficient. Industry
energy efficiency trends are attributable to improvements at existing
properties and newly constructed facilities, where energy efficiency
is integrated into the facility design. A recent study, conducted
by the School of Hospitality and Tourism (HTM) at the University
of Guelph in cooperation with PKF Consulting, confirms that energy
efficiency improvements have been a priority for hoteliers in recent
years. The study revealed that since 2000, 45% of Canada’s
hotels and motels have undertaken a project where the primary
purpose was to improve energy efficiency.
The HTM study gauged
the state of energy efficiency in Canada’s
hotels and motels, which rank as some of the most energy intensive
facilities within the commercial building sector, according to
Natural Resources Canada. Guest rooms tend to be the last place
hoteliers look to improve efficiency partly because of guest satisfaction
issues. That said, the study concludes that improvements are being
made in guest room efficiency with fluorescent bulbs used in 40%
of guest room fixtures and digital thermostat found in 17% of guest
rooms. The average age of a Canadian hotel or motel’s domestic
hot water system is 12.5 years, compared to heating systems, which
are 17.5 years old on average. Toilets are still relatively inefficient
consuming 11.5 litres per flush due in part to the higher maintenance
costs resulting from 6-litre toilets. Showerheads in guest rooms,
on the other hand, are efficient, consuming 9.1 litres per minute,
slightly above what is considered a low-flow showerhead. For a
full copy of the HTM study email me at jeffhyslop@pkfcanada.com.
Jeff Hyslop, Consultant
PKF Consulting
