Energy Management

and Your Valued Guest:

How Do You Impress Your

Guests, Cut Energy Costs, and
Do Your Part To Be Green?

_____________________________________
An INNCOM White Paper · 2007
INNCOM international, inc.
Tel: (860) 739-4468 · Fax: (860) 739-4460
E-mail: solutions@inncom.com · URL: www.inncom.com
Energy is typically a hotel’s second highest operating cost. With utilities costs on the rise, the
impact on financial statements is obvious. Rising energy prices are cutting into hoteliers’ profit
margins. While energy cost-cutting is imperative, there is an acute need by hotels to temper
cost-cutting efforts with the desires of its customers. Hospitality solutions must be multifaceted
— simultaneously addressing:
hoteliers’ need to generate profits

hotel management’s need for efficiency and reliability

guests’ expectations of comfort, safety, and satisfaction
customers’ desire to buy from socially responsible businesses and
hoteliers’ obligation to be environmentally sensitive

How do you impress your guests, cut energy costs, and do your part to be green?

Rising Energy Costs versus Your Valued Guest’s Needs (and Wants)

In 2006, even as the U.S. lodging industry enjoyed double-digit growth in gross profits,
operating expenses grew an average of 7.8 percent – nearly twice the rate of inflation for the
same period1. Energy alone typically accounts for 30 – 35 % of a hotel’s operating costs2,
surpassed only by labor, which accounts for over 40%.
So where is this energy being
E n e rg y U s a g e : U S C o m m e rc ia l L o d g in g
used? According to the U.S.
Department of Energy, 22% of
energy costs in commercial lodging
is due to space heating and cooling
and 20% is due to lighting 3 . A 4 2 % W a t e r H e a tin g

major difficulty in managing these 2 0 % L ig h tin g

costs rests with the nature of the 1 6 % S p a c e H e a t in g

industry: the lodging industry’s 6 % S p a c e C o o lin g

customers are direct consumers of 16% O ther

much of a hotel’s heating/cooling
and lighting – and they fully expect
US Department of Energy
to have comfortable levels of both,
even in the most limited-service
hotel.
While guests require an agreeable room atmosphere, a hotel’s rooms are actually occupied
fewer than twelve hours a day, meaning energy is wasted maintaining guest settings even when
guests are not present. And though housekeeping may be instructed to reset the thermostat
and turn off lights in unrented rooms, it has been proven, time and again, that they cannot be
relied upon to do so.

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Core Energy Management Strategies

When it comes to controlling the heating/cooling and lighting costs of a guestroom, the
Department of Energy has four recommendations4:

Install digital thermostats that monitor room occupancy and automatically adjust the
temperature when guests enter or exit.
Save on utility bills and maintenance costs by installing centralized energy management
systems.
Save on lighting costs with energy-efficient lighting and occupancy sensors.
Educate cleaning and maintenance staff to turn off lights and adjust thermostats, and
implement preventive maintenance programs.

Let’s start with the most basic

recommendation: installing digital
The Challenge thermostats that monitor room
Reduce energy usage when guestrooms occupancy. Direct digital control (DDC)
are not occupied thermostats, on their own, offer precise
Eliminate overshooting of desired temperature control. A digital thermostat
temperature by guests
allows the hotel to set a target
Provide automatic setbacks for temperature range and a guest to select a
rented/unrented, occupied/unoccupied,
nighttime, and hibernation conditions specific target temperature. Unlike
Provide easily programmable settings mechanical thermostats, a digital
for seasonal conditions and other thermostat will not over-shoot the target
desired changes temperature and swing between heating
Extend HVAC equipment life and cooling as it attempts to correct itself.
Manage loads to reduce peaks in energy
consumption Some digital thermostats on the market
Improve guest comfort
are only made to provide the simple
temperature control described above.
Such a device may be adequate for very
small properties where it takes little time for housekeeping to maintain economic settings
manually. However, if your property can benefit from automated control and increased
functionality, you will want an expandable digital thermostat, whether or not you choose to
implement its extended features right away.

An expandable digital thermostat is a “smart” device, meaning it contains programmable

software that enables it to perform multiple tasks. An expandable thermostat also possesses
the necessary hardware, such as infrared and passive infrared (PIR) sensors to execute these
tasks. Expandable digital thermostats are vital components in a centrally controlled energy
management system. Some hotels choose to upgrade in stages. They may purchase and
install expandable digital thermostats in the first stage, then connect the thermostats to a

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centrally controlled system at a later date. Installation and financing options should be
discussed with your vendor.
The next level of energy savings is available when a digital
thermostat is equipped with automatic occupancy detection.
This is where the real savings begin.
An automatic occupancy detection system uses one or more
motion sensors (usually passive infrared) stationed
strategically in the room, as well as a discreet door sensor to
monitor opening and closing of the entry door. In operation,
Basic Conservation Concepts
APPLIANCE STRATEGY
HVAC Set back temperature whenever room is not
rented and, when rented, whenever guest is
not in room. Degree of setback depends on
the allowed time to return to a comfort zone detected (for example, if one
and follows a number of scenarios.
Lighting Turn lights off when guest or housekeeping
leaves room.
TV Turn TV off when room is unrented.
Discourage house-keeping from using TV by
turning it off repeatedly.
Drapes Close drapes to prevent heat exchange with
the outside; open drapes when such an
exchange is desirable (when the room is
unoccupied).
ALL Reduce short-term electrical consumption
when a peak demand is reached. Stagger
startup after a buildi-ng-wide power failure. succeeds in reducing HVAC
The basic assumption behind
energy conservation strategies
is that the cost of heating or
cooling a room is proportional
to the temperature difference
between the outside air and
the room’s air.
the occupancy detection system
will declare that a room is
unoccupied if no motion is
detected within a review period of
ten minutes (this time period is
programmable) from the door
closing. If at any point motion is
person stepped out while another
person remained), the room will be
declared occupied. The occupied
state of the room stays in effect
until the entry door has opened
and closed again, at which time a
new review cycle is initiated. In
this simple setup, the digital
thermostat will know when to
maintain a guest-selected
temperature and when to slip into
a hotel-selected energy saving
setback. This simple setup also
runtime, thereby helping to prolong
equipment life.

To truly reap all the benefits of an energy management system, a centrally-controlled system is
necessary. The larger the property (the greater the number of rooms to be managed), the
more vital a centrally controlled energy management system becomes. A property of a
hundred rooms or more should experience a relatively fast return on investment. It is also
important to note here that the initial investment may be offset by special state or utility funded
rebates that are offered in many locations for qualifying energy conservation efforts.

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In a centrally controlled energy management system, a central server stores and manipulates
property information. There are several options for connecting the central server to each of the
guestrooms. The company responsible for configuring and installing the energy management
system must work with the property to optimize both fit and function. For example, it may be
necessary to minimize or eliminate invasive wiring in retrofit projects, whereas running wiring in
a new construction project may be more economical. Additionally, the controls that are
implemented should reflect the property’s image and commitment to guest comfort, as well as
cater to specific property needs, such as humidity control, enhanced security, or luxury amenity
controls.
To better understand the functionality of a centrally controlled energy management system, here
are the main control strategies:

Rented Strategies

When a guest checks in, the room turns from unrented to rented status (mode #1 in Table “Nine
Main Modes”, below). The energy management system goes into high output to bring the room
to a temperature within a relaxed band around a target temperature pre-set by the hotel’s
management (typically 72°F during the summer and 68°F during the winter).

When a room is rented and becomes occupied by the guest (mode #2), the system will strive to
maintain the temperature set by the guest within a tighter band. No compromising energy
conservation efforts are being implemented at that time, as guest comfort takes precedence.
The guest is allowed control of the temperature and other operating aspects of the AC. A limit
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on the target temperature can be imposed on the system if so desired by management. Note
that an advanced temperature control system will save substantial energy over a mechanical
thermostat even in this mode, as the system will handle the temperature control in a more
efficient way and can prevent abuses by the guest.

A properly programmed occupancy detection system recognizes

Nine Main Modes
and responds to each according to the hotel’s requirements:
MODE No. NAME DESCRIPTION
1 Rented Unoccupied Room is sold; but nobody is in the room
2 Rented Occupied Room is sold and a person (who is not staff /
housekeeping) is in the room
3 Rented Occupied, Door was left open for a time, but not by staff /
Entry Door Ajar housekeeping

4 Rented Occupied Night When guest is assumed to be asleep

5 Rented Occupied
by Hotel Staff / Housekeeping
6 Unrented Unoccupied
7 Unrented Occupied
By Hotel Staff
8 Unrented Occupied
9 Unrented Hibernating
Room is rented and staff / housekeeping is working in
the room
Room is not sold
Staff is in an unrented room
Room is not sold and a person who is not authorized
staff is in the room (special or illegal condition)
Room is not expected to be sold for a while

While the guest is assumed to be sleeping (mode #4), the room temperature can be allowed to
float by 2-3°F without causing the guest inconvenience. For example, during the heating
season, the room temperature of rented occupied rooms may be allowed to fall somewhat
between 11PM and 5AM.
When the room is rented but not occupied by the guest (mode #1), the room temperature is
allowed to float within a pre-defined window. The room is said to have been placed in “rented
setback”. For upscale properties, this setback is a gentle 2-3°F around the guest selected
setting. In economy properties, the typical rented setback temperatures are 65°F for heating
and 80°F for cooling.

Unrented Strategies
When a room is not rented, but is available for immediate rental (mode #6), the room
temperature is allowed to float within a wider window than the rented setback. This is the
“unrented setback”. Typical values for unrented setback temperatures are 60°F for heating and
85°F for cooling.

An unrented room may be placed in VIP mode. In this mode, the room is being prepared for a
guest as if the guest has already checked in (mode #1) – even though the room is technically
still unrented. The system will automatically cancel this state and return the room to the normal
unrented mode if the room had not been rented by 8PM (or another management selected time)
that day.

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So…
What Does Energy Management Really Do for You and Your Guest?

Properly installed and maintained, energy management systems do more than the obvious. In
addition to saving you money on energy costs, they enhance the image of the hotel and the
comfort of the guest.

Benefits include:
Benefits to the Hotel
Lower Operating Costs…
Savings begin almost Lower operating costs
immediately, resulting in a Increased guest satisfaction
(precise temperature control adding
relatively fast return on
significantly to guest comfort)
investment. The concept is
Lower maintenance costs
simple – reduce consumption (Reduced runtime of HVAC equipment)
and you reduce spending. Extended equipment life
(Reduced runtime of HVAC equipment)
Extended Equipment Life…
Equipment that is not Aesthetic digital thermostat
constantly running (and that Expandability providing for additional
guest-satisfying features
operates efficiently when it
Competitive advantage from marketing a
does) lasts longer than
green image
equipment that is “used and
abused”.
More Efficient Staff… Housekeeping does not need to waste time turning off lights and
setting back thermostats. If maintenance alerts are included in a centrally controlled
system, engineering will be alerted of equipment failures and be able to respond to
issues before complaints are made.
Guest Satisfaction… Guests are greeted with a comfortable room temperature and have
precise control of the room climate during their stay. A centrally controlled system that
offers additional guest-centric options – such as Do-Not-Disturb/Make-Up-Room
requests, lighting controls, etc. – can spoil them still more. This means even luxury
hotels can pamper while being eco-friendly.
Green Image… There is an ever growing number of consumers who care about the
environment, both at home and while on travel. Many of these travelers are admittedly
willing to pay more for eco-friendly services. As a green hotel, you are doing the Right
Thing. Do it ahead of government regulation and customers are even more impressed.
Better still, the “feel good” mentality extends to employees, as well.

"Consumers are used to recycling and saving energy at home and expect to be able to do the same
thing while traveling," says Glenn Hasek, publisher and editor of Green Lodging News. "In fact, it has
been proven that consumers are willing to pay more to stay at a green hotel. They like the idea of
supporting a company that cares enough to be environmentally responsible."

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 Recognition for installing energy management systems and incorporating other eco-friendly
practices may be obtained through LEED certification (www.usgbc.org) and Energy Star for
Hospitality (www.energystar.gov).

INNCOM international, inc., headquartered in Niantic, CT, specializes in guestroom controls.

Following are brief case studies of energy management systems installed in two very
different properties…

Case Study: INNCOM Saves Money at a Luxury Resort in the Bahamas

1,307 rooms a luxury resort in the Bahamas were monitored for energy savings for a period
of fifteen months. An INNCOM system was installed that used both rented/unrented logic
and occupancy logic to manage the energy consumption in the hotel guestroom. 26 rooms
randomly spaced about the property had their energy management disabled and acted as
the reference rooms for the study. The guestroom HVAC system at the resort is
thermostatically controlled fan coil units (FCU’s). The results of the study are as follows:

Average energy saved in the guestroom: 30.33%

Average energy savings/guestroom/day: $0.71
Total energy savings during the test period: $423,386

Actual operational savings during the period were higher because of reduced maintenance
costs and increased equipment lifetime since the HVAC equipment had a substantially lower
runtime in the energy management equipped rooms.

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 Table 1. Raw Data
Case Study: INNCOM Cuts Columbus, Ohio Property
HVAC Runtime for Room EMS Hours of Hours of
an Economy Chain Cooling Heating
114 No 455 249
Four properties were monitored for 131 Yes 303 123
energy savings for a period of four 144 Yes 492 445
months. These properties were 101 No 579 478
geographically dispersed: Columbus, 222 No No data 345
Ohio, Hartford, Connecticut, 227 Yes 620 369
Houston, Texas and Detroit, 236 Yes 378 10
Michigan. An INNCOM system was 213 No 826 341
installed that used occupancy logic to Hartford, Connecticut Property
manage the energy consumption in Room EMS Hours of Hours of
the hotel guestroom. Very deep Cooling Heating
setbacks were used on these 138 No 245 16
properties when the rooms were 139 Yes 180 13
unoccupied. In each property, 8 164 Yes 198 39
randomly selected rooms were 165 No 196 48
monitored for HVAC runtime. Four 238 No 414 5
rooms had energy management 239 Yes 247 9
enabled. Four rooms had their
264 Yes 258 21
energy management disabled and
265 No 486 167
acted as the reference rooms for the
study. The guestroom HVAC at Houston, Texas Property
these properties are packaged Room EMS Hours of Hours of
terminal air conditioners (PTACs). Cooling Heating
The results of the study are 104 Yes 284 263
presented in Table 1 and are 101 No 887 368
summarized as follows: 117 Yes 498 258
118 No 1141 571
Average reduction in PTAC runtime: 208 No 954 780
43.75% 217 Yes 621 661
323 Yes 243 178
Although a 44% reduction in PTAC 322 No 971 376
runtime does not directly equate to Detroit, Michigan Property
44% energy savings (because of Room EMS Hours of Hours of
variations in fan and compressor Cooling Heating
runtime), it does equate to a
130 Yes 394 32
substantial savings for the property.
129 No 851 50
140 Yes 826 83
119 No 1337 103
258 No 1337 12
201 Yes 355 5
213 Yes 546 20
246 No 1216 32

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With energy prices climbing, hotels must find guest-friendly ways to reduce energy
consumption. A well-executed energy management system satisfies the hoteliers’ need to
generate profits and guests’ expectations of comfort.

If you are interested in learning more about the topics covered in this white paper, INNCOM can
help. Please visit www.inncom.com or call 800-543-1999.

From a positive impact on the

bottom line to customer – and
even employee – satisfaction,
the lodging industry is
becoming increasingly aware of
the benefits of “going green”.

1
“U.S. Hotel Profits Up 13.1 Percent in 2006,” Hotel Interactive, Nov. 28, 2006, Mar 1, 2007,
<http://www.hotelinteractive.com/index.asp?page_id=5000&article_id=6667>.
2
Environmental, Health, and Safety Guidelines: Tourism and Hospitality Development (International
Finance Corporation, 2006).
3
U..S Department of Energy, “Energy Solutions for Your Building,” Feb. 28, 2007,
<http://www.eere.energy.gov/buildings/info/lodging/>.
4
U.S. Department of Energy, “Energy Solutions for Your Building.”

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