The Compelling “Hard Case” for “Green” Hotel Development

Abstract

Hotel developers and managers may be wary of the current emphasis on “green” hotel development, because such trends have come and gone in the past. This time, however, consumers will almost certainly continue to demand that hotels join other commercial real estate operators in constructing and operating their buildings in accordance with standards established by the U.S. Green Building Council. The so-called LEED standards (Leadership in Energy and Environmental Design) are the basis of certification for qualifying buildings. Governments are beginning to mandate reduced energy use and emissions. Whereas building a green hotel used to cost a premium, current studies show that the cost of building to LEED standards is not greater than conventional approaches, while those buildings are healthier for occupants and less expensive to operate. Although retrofitting buildings does save energy, a better approach is to construct green hotels. Current incentives for energy-saving construction and operation may diminish, and early adopters will have the best chance at those incentives.