Hotel Energy Management Systems – How Much Do They Cost?

Hotel Energy Management Systems Part 3:
How Much Do They Cost?

Energy is the second largest hotel expense! Only staffing costs you more than your energy expenses. As I’ve discussed in my last two newsletters on this topic, reducing energy through an EMS is a great solution to help reduce wasted energy. But here’s the bottom line: What does it cost?

The cost of a hotel EMS can vary greatly based on several major factors, including:

1. Level of Implementation – Does the hotel plan to install only guestroom occupancy sensors or a full EMS tied into the hotel’s PMS?
2. Guestroom Geometry – Can the guestroom thermostat sensor cover the main occupancy areas (e.g., bed, desk, chair)? If not, supplemental sensors will be needed.
3. Vendor Specified – What is the pricing and quality of EMS, which can vary greatly between vendors?

Upfront Cost: A basic EMS implementation can range in cost from $300 to $500 per key for a typical property. This basic EMS system would include a smart/networked thermostat with a built-in occupancy sensor to provide energy savings.

ROI: Remember- upfront cost is not the only important consideration. Implementation reduces hotel energy costs and impacts how quickly the return can be realized. The ROI on these systems varies by several main factors:

• Project Climate –The higher the heating and cooling demand, the quicker the payback.
• Energy Costs –The higher the gas and electrical utility rates, the quicker the payback.
• Hotel Occupancy –The lower the occupancy rate, the quicker the payback.
• Property Size – The higher the key count, the quicker the payback.

While these factors significantly impact energy savings, a basic EMS can reduce energy costs by at least 15%. In some cases of optimal efficiency design, hoteliers have even seen energy costs reduced by nearly 50%. If you have further questions or would like to discuss if EMS might be right for your next project, please don’t hesitate to reach out.