Understanding the Varied Landscape of Hotel Utility Costs

The cost of utility bills for hotels can vary significantly depending on various factors such as the size of the hotel, its location, the seasonality of demand, energy efficiency measures in place, and the specific utilities included in the bills. On average, however, utility bills for hotels typically range from 3% to 6% of total operating expenses.

For a more precise estimate, hotel owners and operators should consider factors such as electricity, water, gas, heating, cooling, and waste management costs, as well as any potential savings from energy-saving initiatives or renewable energy sources. Additionally, benchmarking against similar properties in the same area can provide valuable insights into typical utility costs within the industry.

• The Average U.S. hotel spends $2,196 per guest room in energy costs per year
  

 

• HVAC (32%) and lighting (13%) are responsible for 45% of hotel energy usage, presenting large windows for savings

 

• 10% decrease in energy = $1.35 increase per room
  Reducing energy use by 10% has the same bottom line impact as boosting the average room rate by $1.35 in full-service hotels

 

• Where does the bulk of energy go?
  Breaking down the percentage of energy that fuels hotel operations like ventilation, lighting, cooling, and heating:
  HVAC (Ventilation: 16%, Cooling: 13%, Heating: 3%)
  Office Equipment: 14%
  Lighting: 13%
  Refrigeration: 10%
  Cooking: 3%
  Computing: 1%
  H20 Heating: 1%

Statistics: Zen Hospitality