OUS Capital Seven Myths for Hotel Energy Efficiency

The Seven Myths of Hotel Energy Efficiency Projects

Straight Talk on Energy Series

A look into the most common energy-efficiency project myths that stall or derail many hotel upgrade initiatives.

(and how they are holding you back)

The Seven Myths of Hotel Energy Efficiency Projects (and how they are holding you back)

Onsite Utility Service's review of the seven most

common energy-efficiency project myths affecting the hotel industry - including

requirements, goals, variables, expectations, and a whole lot more.

Executive Summary

Over the last decade, hotels around the world have faced increasing financial challenges as margins and

profitability have decreased. The hospitality industry as a whole is challenged with budgetary constraints:

The recent and ongoing increases in energy costs have led to losses for many hotels and has squeezed

margins in others.

Add to that the staggering statistic that on average, America’s 47,000+ hotels spend $2,196 per available

room each year on energy1. This represents about 6 percent of all operating costs.

So how will hotels handle this increasing financial pressure?

Through a strategic approach to energy efficiency, a 20 percent reduction in energy consumption would have the

same financial effect as increasing the average daily room rate (ADR) by $1.24 in limited-service hotels and by

$2.70 in full-service hotels.

There is a well-established case for energy efficiency as a sound business practice, and expectations for hoteliers

to demonstrate their climate stewardship are growing. Energy efficiency provides hotel owners and operators cost

savings that benefit the bottom line, but it also improves the service of capital equipment, enhances guest comfort,

and demonstrates a commitment to environmental consciousness. Yet, despite these clear benefits, many hotel

owners and operators continue to permit several myths about energy efficiency to influence their decision process,

sadly resulting in much-needed energy efficiency initiatives to be delayed or, worse, derailed.

In this guide, we will shine the light of truth on these myths, help you gain a clear unfiltered perspective of the

reality involved in energy efficiency upgrade projects for your hotel, and put you on the right path to help you make

an intelligent and informed energy-efficiency decision.

1 2016 US Department of Energy

Here are the Seven Myths of Hotel Energy Efficiency

Upgrade Projects, and how they may be stopping

you from lowering your energy costs.

The Seven Myths of Hotel Energy Efficiency Upgrade Projects

© 2018 OUS Capital www.ouscapital.com

5 The Seven Myths of Hotel Energy Efficiency Projects


An energy upgrade won’t really provide a meaningful expense reduction

Myth 1

You believe an energy efficiency

upgrade will lower your energy costs, but not enough to justify

the expense required to get it

done.



A complete energy efficiency upgrade could reduce your energy costs by as much as 60%

FACT 1

We’ve seen hotels successfully reduce their overall energy consumption costs anywhere from 10% to as much as 60%. Those savings can add up FAST (your shareholders will thank you).



Your guests don’t care if your hotel is energy-efficient

Myth 2

You believe your guests don’t think

about energy efficiency - and even

if they did, they sure aren’t going to

let that influence how they choose a hotel.



More consumers are using eco-friendliness as a key factor in choosing hotel accommodations

FACT 2

A survey of 1,300 U.S. travelers by TripAdvisor shows that nearly two-thirds of travelers - 62 percent - often or always consider environmental-friendliness when choosing a hotel. The survey also shows that 69 percent say they plan to make even more eco-friendly choices in the next 12 months.



You don’t need any outside help - you can do all this yourself

Myth 3

You’re convinced that it can’t be ‘that difficult’ to handle an energy

efficiency upgrade on your own or

with your own staff, so why look to

outside experts to help you?



Only an experienced energy contractor can complete the work to code - and do it right

FACT 3

There are multiple and various code requirements needed to properly install, modify and/or replace energy equipment, and only an experienced contractor knows how to get it done right the first time. For the same reason you don’t do surgery on yourself, using an experienced energy contractor is the safe and smart way to get an energy project done correctly.



You won’t see a real positive return on investment for years

Myth 4

When you look at energy

efficiency project costs, and then

do the math, it looks like it will

take several years (or even longer!) to see a positive ROI.



Some hotel owners see a return on investment in a matter of months - or even DAYS.

FACT 4

If you are being told by an energy contractor or consultant that it will take years for you to see a positive ROI from an energy efficiency upgrade, you may want to look elsewhere for better advice. If an energy-efficiency project is done right, you should see instant savings from day ONE.



You need to work the project costs into your budget …someday

Myth 5

You’ve got a tight budget, and right now there just isn’t

enough room in it for an ‘energy’

project. But maybe, someday, it

might get included.



Hotel owners can complete an energy upgrade project regardless of their budget

FACT 5

Your budget doesn’t have to be an issue. When you are working with a seasoned energy efficiency expert, they should be capable of structuring the entire upgrade project so it works within ANY budget, no matter how tight it may be.



You have to come up with a huge out-of-pocket investment to get a project started

Myth 6

In order to get an energy-

efficiency project started,

you believe it will require

a huge up-front investment.



You can complete an energy efficiency upgrade project with ZERO up-front or out-of-pocket expense

FACT 6

You should ONLY work with an energy

contractor that provides you the ability

to launch and complete a full energy

efficiency upgrade project without requiring a single penny of out-of-

pocket expense from you - EVER.



All of this will just saddle your balance sheet with more debt

Myth 7

Even if you could upgrade

without any out-of-pocket

expense, you think that just

means your balance sheet will be slapped with a huge debt.



You can complete an entire energy efficiency upgrade without incurring one single penny of debt

FACT 7

The fact is, you actually don’t have

to incur any debt for an energy

efficiency upgrade project.

None. Zero.

Now wouldn’t THAT be a smart solution?

Can you really give your entire hotel an energy

efficiency upgrade without paying anything up

front, spending anything out of pocket,

and incurring any debt?

So how is all this possible?


20

The answer is simple:

The Truth is Stranger than Fiction

Energy Savings as a Service

21 The Truth is Stranger than Fiction


How Energy Savings as a Service Works

3 4

Your hotel is completely upgraded with energy efficient

equipment - lighting, HVAC, water - the works

1 2

You pay nothing up front -OUS Capital fronts the entire cost for the equipment and installation.

It’s not a loan, it’s not a lease, and it’s not ‘financing’, so it

never shows on your balance sheet

All costs are then deducted from the savings you will see

AFTER the project is completed, with the rest going into your

pocket as bottom-line savings

Your hotel is now fully upgraded with energy-efficient equipment, your

energy costs are dramatically reduced, you paid nothing out of pocket, you have no debt on your

balance sheet - and you enjoy instant savings from day one

22 The Truth is Stranger than Fiction


Energy Savings as a Service accomplishes

everything you are looking for in an energy

efficiency upgrade solution - without the

headaches,

without the financial nightmare,

without budget issues, and without the

‘debt albatross’ hanging around your neck.

No Budget? Your hotel undergoes a complete

energy-efficient upgrade

Complete Upgrade

Your energy costs plummet rapidly,

delivering day-one savings

Instant SavingsEverything is completed without any up-front investment from you

Zero Up-Front Cost

It’s not a loan - so nothing is added

to your balance sheet

Zero Debt

All ongoing equipment

maintenance is handled at no cost

Zero Maintenance

Isn’t this what you really

wanted in the first place?

More Profits

No Problem


Welcome to the Future of Hotel Energy Efficiency

Now, finally, your hotel can cut energy consumption, save money, and improve the guest experience - all at the same time, and without any of the financial risks that have been holding you back.

Now THIS is how an effective energy efficiency upgrade project is supposed to work.

Prove it to Yourself for Free

ADDRESS770 N. Halsted,

Chicago, IL 60642

PHONE+ 844.768.7227

[email protected]

WEBSITEwww.ouscapital.com

Don’t just take our word for it.

See for yourself how Energy Savings as a Service can work for your hotel, for your situation.

Your journey to savings begins with a great conversation. Connect with our team and schedule one with us today.

No cost. No risk. No obligation.

About OUS Capital

Delivering onsite energy savings with no debt or investment required, Onsite Utility Services (OUS) Capital provides energy

upgrades and savings as a service to large and small energy users alike.

Through our Energy-as-a-Service platform, we design, invest, procure, install, and maintain onsite energy efficiency retrofits

and distributed generation systems on behalf of our customers; providing them energy savings and improved cash flow from

day one while freeing their capital to be invested back into their own businesses and institutions.

OUS Capital invests in onsite utility solutions for both small and large organizations nationwide. Energy-as-a-Service solutions

are ideal within these sectors as they lower operating costs, conserve capital, improve facility asset value, provide a

competitive advantage, and avoid the accumulation of debt.

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OUS Capital Seven Myths for Hotel Energy Efficiency