Hotel & Hospitality Energy Solutions

Commercial Energy for Hotels & Hospitality

Hotels and hospitality properties are among the largest commercial electricity and natural gas consumers. From guest room heating to commercial laundry operations, electricity and natural gas powers critical systems that directly impact guest comfort and operational costs. In deregulated markets, hotels have significant opportunities to reduce these costs through competitive supplier procurement.

Understanding how to optimize electricity and natural gas procurement can make a meaningful difference to your property's bottom line.

Electricity & Natural Gas: Dual Energy Strategy

Most hospitality operations use both electricity and natural gas to power their facilities. Understanding how to optimize both commodities is essential for comprehensive cost management:

Electricity Usage

• Lighting and HVAC systems
• Electric motors and equipment
• Refrigeration and cooling
• Office equipment and computers
• Backup power systems

Natural Gas Usage

• Process heating and steam generation
• Space heating systems
• Hot water heating
• Cooking equipment
• Emergency generators

By managing both energy commodities strategically through competitive procurement in deregulated markets, businesses can reduce overall energy costs by 15-30%.

Why Hotels Rely on Commercial Energy

Commercial energy is the preferred fuel for hotels due to its efficiency, reliability, and cost-effectiveness:

Heating & Cooling Systems

Commercial energy-fired HVAC systems provide efficient space heating throughout your property. Compared to electric alternatives, electricity and natural gas heating offers:

• Lower operating costs per BTU
• Faster heating response times
• Reliable operation during power grid stress
• Longer equipment lifespan

Domestic Hot Water

Hotels consume enormous amounts of hot water for guest rooms, laundry, kitchens, and pools. Commercial energy water heaters deliver:

• High recovery rates for peak demand
• Consistent hot water temperatures
• Lower per-gallon heating costs
• Efficient operation at scale

Commercial Laundry

Hotel laundry operations run continuously. Commercial energy-powered commercial dryers and ironing equipment offer:

• Faster drying cycles
• Lower energy costs per load
• Reduced wear on linens
• Consistent results

Food Service Operations

On-site restaurants and banquet facilities rely on electricity and natural gas for:

• Commercial cooking ranges and ovens
• Dishwashing with high-temperature sanitization
• Food preparation equipment
• Catering kitchen operations

Common Commercial Energy Uses in Hotels

Application	Typical % of Usage	Peak Demand
HVAC / Space Heating	40-50%	Winter months
Domestic Hot Water	25-35%	Morning hours
Commercial Laundry	10-20%	Daytime operations
Kitchen / Food Service	5-15%	Meal periods
Pool / Spa Heating	5-10%	Year-round

Cost Reduction Strategies for Hotels

1. Competitive Supplier Procurement

In deregulated markets, you can choose your electricity and natural gas supplier while your utility continues delivering the gas. Working with an energy broker like Commercial Energy Advisors allows you to:

• Compare rates from multiple licensed suppliers
• Negotiate volume-based discounts
• Lock in favorable rates during market lows
• Access contract structures designed for hospitality

2. Contract Structure Optimization

Different contract types suit different hotel operations:

Fixed-Rate Contracts

Best for hotels needing budget certainty. Lock in a per-therm rate for 12-36 months regardless of market fluctuations. Ideal for:

• Corporate-owned properties with fixed budgets
• Properties in volatile weather climates
• Hotels planning major events or renovations

Index-Based Pricing

Pay market rates plus a margin. Works well for:

• Properties with flexible budget capacity
• Hotels in mild climates with lower heating demand
• Seasonal properties during off-peak periods

Blended/Hybrid Strategies

Combine fixed and index pricing to balance risk and opportunity. Consider:

• Fixing winter months, floating shoulder seasons
• Protecting a percentage of usage with market exposure on the rest

3. Usage Optimization

Reduce consumption without impacting guest comfort:

HVAC Management

• Implement smart thermostats in guest rooms
• Use occupancy sensors to reduce heating in empty rooms
• Maintain equipment regularly for peak efficiency
• Schedule setbacks during low-occupancy periods

Hot Water Systems

• Install heat recovery systems on HVAC exhaust
• Use tankless water heaters where appropriate
• Insulate hot water distribution pipes
• Optimize water heater temperature settings

Laundry Operations

• Maximize load sizes to reduce cycles
• Use ozone laundry systems to reduce hot water needs
• Schedule laundry during off-peak rate periods
• Maintain dryer equipment for efficient operation

4. Equipment Upgrades

Modern high-efficiency equipment can significantly reduce gas consumption:

• Condensing boilers: 90%+ efficiency vs. 80% for standard units
• Tankless water heaters: Heat only when needed
• Energy Star rated equipment: Kitchen and laundry
• Building automation systems: Coordinate all systems for optimal efficiency

Hotel-Specific Considerations

Seasonal Demand Patterns

Hotel electricity and natural gas usage varies significantly by:

• Season: Winter heating vs. summer cooling
• Occupancy: Weekend vs. weekday patterns
• Events: Conferences and special events spike usage
• Amenities: Pool heating, spa operations

Understanding your demand pattern helps optimize contract timing and structure.

Multi-Property Portfolios

Hotel chains and management companies with multiple properties can:

• Aggregate volume across properties for better rates
• Coordinate contract timing for portfolio-wide savings
• Standardize procurement processes
• Share efficiency best practices

Franchise vs. Managed Properties

Procurement authority varies by ownership structure:

• Franchised properties: Often independent procurement decisions
• Managed properties: May have corporate energy programs
• Owned properties: Full control over supplier selection

Commercial Energy Advisors works with all ownership structures.

Industries We Also Serve

Hotels often have related properties or ownership ties to other hospitality businesses:

• Restaurant Commercial Energy Solutions - On-site dining facilities
• Healthcare Commercial Energy Solutions - Senior living and care facilities
• Office Building Commercial Energy Solutions - Corporate headquarters
• Multi-Tenant Commercial Energy Solutions - Mixed-use developments

Get Your Free Hotel Energy Analysis

Commercial Energy Advisors specializes in hospitality energy procurement. Our services include:

1. Bill Analysis: Review your current electricity and natural gas costs and usage patterns
2. Market Assessment: Evaluate current market conditions and supplier options
3. Contract Comparison: Obtain competitive bids from licensed suppliers
4. Negotiation Support: Secure favorable terms and pricing
5. Ongoing Management: Monitor market conditions and contract renewals

No cost to your property—suppliers compensate us directly.

Whether you manage a single boutique hotel or a portfolio of properties across multiple states, Commercial Energy Advisors can help you reduce electricity and natural gas costs while maintaining the guest comfort that drives your business.

Contact us today for your complimentary hospitality energy analysis.