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

Jim Butler

Cornell Hospitality Quarterly · 2008 · 226 citations · 0 references

Concepts

TL;DR

Hotel developers may be wary of green development, but consumer demand, LEED certification, and government mandates are driving a shift toward constructing new green hotels, as retrofitting is less effective and incentives may wane. Building to LEED standards is not more expensive than conventional approaches, and LEED buildings are healthier for occupants and cheaper to operate.

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.