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Energy initiatives can cut utility spend by 20% in UAE hotels

Within a hotel’s undistributed operating expenses, utility costs may account for 6% of total revenue, a Knight Frank report found

Energy initiatives can cut UAE hotels' utility spend by up to 20% [representational image].
Energy initiatives can cut UAE hotels' utility spend by up to 20% [representational image].

Initiatives to improve energy efficiency could cut utility costs by 15% to 20% at hotels in the UAE, a recently released study claimed. 

Within a hotel’s undistributed operating expenses, utility costs may account for 6% of total revenue, Knight Frank's UAE Hospitality Report 2017 found. 

READ: EmiratesGBC reveals EUI and WUI of 46 UAE hotels

Environmental and weather conditions, particularly during summer, drive up energy consumption in hotels. 

Simultaneously, hotel income is "typically at its lowest" during the summer period. 

READ: More than 80 hotels to open in UAE in 2018

"As a result, a range of tools and sustainability practices can be implemented to realise the benefits of reduced energy costs," the report explained.

"Innovative engineering and advanced technological equipment is likely to reduce energy costs and consumption by an average of 15% to 20%."

The report pointed to LEED and Green Key programmes as being key supporters of local hotels' sustainability ambitions. 

READ: Details of Le Méridien Dubai hotel's Phase 2 renovation revealed

In addition, retrofit projects were highlighted as a significant tool to reduce energy-related costs.

The report continued: "Integrating such retrofits and various energy solutions can require weighty capital investment.

READ: Oman's Gulf Hotels to start renovation programme in 2018

"However, a select number of focused energy service companies (ESCO) in Dubai are prepared to absorb the cost of investment associated with upgrades, installation, and retrofits." 

Energy cost savings achieved through ESCOs "also extend to the cost of property operations and maintenance (POM), as the equipment installed or upgraded will be the most up-to-date and maintained by the ESCO team", the report added. 

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Construction Week - Issue 754
Nov 23, 2019