Promoting the business benefits of sustainable hotels for all industry stakeholders.
energy-related GHG emissions from buildings
pipeline of new hotel rooms
We are working in collaboration with IFC (International Finance Corporation), a member of the World Bank Group. IFC provides insights based on their extensive experience investing in sustainable building projects and their EDGE green building certification system, which is available in most international markets.
Sustainable development in the hospitality industry
Why we are doing this
Rising carbon emissions are accelerating climate change with considerable impacts across communities and ecosystems, businesses and economies. The hospitality industry is particularly exposed, with extreme weather events increasing the cost of operations whilst simultaneously decreasing the popularity of some destinations across the world.
The hotel industry accounts for around one per cent of global greenhouse gas (GHG) emissions.1
Buildings more broadly generate 19 per cent of energy-related GHG emissions and consume 40 per cent of electricity globally.2
The hotel sector had a growth rate of 17.7 per cent from 2008 to 2018 and there’s a global pipeline of 2.4 million additional hotel rooms.3
What is required for progress?
If all new hotels built in the next ten years integrated simple sustainable upgrades, the industry would save the equivalent to the yearly greenhouse gas emissions of 9 million cars.
However, a hotel property can be built, financed and owned by different businesses than the brands or individuals that run them. This complex ownership structure is often a challenge to building and operating more sustainable hotels.
But, far from being an impediment to business, a sustainable hotel offers considerable benefits for all industry stakeholders.
About this programme
Our aim is to increase commitment to incorporate sustainable hotel design and improve collaboration across the different members in a hotel property value chain
Building the business case for sustainable hotels
We are working in collaboration with IFC, our members, and other industry specialists to provide compelling evidence that building and operating a hotel sustainably has both financial and reputational benefits.
We have prepared recommendations tailored for each stakeholder in the hotel property value chain with evidence and tangible actions for acting more sustainably.
Costs are not as high as perceived to implement sustainable measures and often quickly covered by utility savings
Sustainable design future-proofs hotel properties and protects investments
More governments are offering incentives for building sustainably, whilst increasing penalties for companies that aren’t acting responsibly
Sustainable hotels attract more guests that are willing to pay higher room rates
Increasing collaboration across the hotel value chain
Maximum benefits and cost-savings for all stakeholders can only be achieved by working together.
Through this project, we are engaging with all stakeholders in the hotel property value chain:
Investors and asset managers
Owners and developers
All stakeholders in a hotel property can use our research to support conversations with their business partners, and create a more joined up approach to building, refurbishing and operating sustainable hotels.
“This research fills a major knowledge gap with focused and quantitative analysis. It shows that the costs are lower than previously thought while the benefits are high, with actionable recommendations for each stakeholder group. The collaboration between IFC and ITP has the capacity to move the entire hospitality industry onto a greener path.”
Shamsah Fatima Dhala, IFC’s Global Sector Lead for Tourism.
“As the UN Sustainable Development Goals have shown, the risks of not acting are too big to overlook, but so too are the opportunities to reduce costs, increase revenue, and future proof your properties and investments.”
Madhu Rajesh, CEO of Sustainable Hospitality Alliance
Help us to increase sustainable design in the hotel sector
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