Green lodging: Is sustainability good for business?

Highlights from The Lodging Conference, Oct 2024

Sustainable hospitality is not just an ethical obligation but a strategic business advantage: This was the top takeaway from a panel focused on green lodging at The Lodging Conference, a sold-out conference hosting 2,900+ hotel leaders, owners, and operators.

As a leading Group Purchasing Organization (GPO), Entegra supports hotels, resorts, casinos and more with savings on almost everything they buy – with corporate social responsibility as a core tenet. Entegra’s own Jeffrey Simmons, VP of Supply Management, Hospitality joined other panelists to discuss Green lodging: Is sustainability good for business? Investing in sustainable lodging boosts valuation. Here, we’ve recapped the top panel discussion points.

Studies indicate that hotels investing in sustainability can see an increase in valuation of 2.5-3%.

• Sustainability is more affordable and adaptable for both luxury and select hotels.
• Hotels not adopting sustainable practices risk falling behind competitors.
• Investing in sustainability can affect future valuations and market positioning.

How Entegra can help: Lodging clients can tap into Entegra’s corporate social responsibility services to meet their distinct sustainable and social goals, from energy services to food waste and much more.

Share sustainable success stories with guests

Studies show that guests informed about sustainability initiatives feel more positively about the hotel.

• Increased conversations among neighbors and communities reflect a growing commitment and concern for shared environments.
• Hotels must effectively communicate their sustainability efforts to guests to enhance brand affinity and guest satisfaction.

How Entegra can help: According to HubSpot, 89% of consumers confirm they want to see more videos from their brands.¹ Entegra can provide on-site photography and video production via Entegra Culinary Consulting. Entegra can also help with attractive, high-quality signage, table placards, digital displays and more to tell your sustainability success stories via supplier partner Visual Graphic Systems (VGS), from our Local and Direct Savings Program.

Loud and proud sustainability: Hotel developers must communicate more

It is important that hotel developers communicate their sustainable building initiatives with the same commitment as hotel owners and operators.

• Developers who share successes help combat skepticism about the feasibility of sustainable projects.
• Attitudes towards sustainability are changing with new generations
• Educating and sharing successful models fosters more acceptance among traditional developers.

How Entegra can help: The Entegra client services team works alongside operators to acquire supplier specifications to drive accurate and transparent business stories. Entegra’s energy management team regularly partners with clients in acquiring LEED certification, Energy Star use and other green building standards.

Responsible supply chains

Having a fully traceable supply chain, including responsible sourcing, encompasses animal welfare, fair labor, sustainable farming, plant-based food alternatives and much more.

• Strong collaboration with suppliers is vital for improving sustainability practices.
• Suppliers are generally eager to innovate and adapt when given clear brand requirements.

How Entegra can help: Entegra co-founded the Hospitality Alliance for Responsible Procurement (HARP) in 2023. Suppliers are enrolled via the EcoVadis platform and are scored based on a range of sustainability metrics. The resulting “sustainability scorecard” provides critical insights to plan your responsible sourcing strategically to meet corporate-mandated goals.

Financing, government regulation and ROI

By taking an active role in shaping sustainability regulations, lodging leaders can leverage their unique position and influence positive changes within the supply chain, local communities, and other core channels.

• Financing options for new construction, especially sustainable ones, can significantly lower capital costs and increase project feasibility.
• Investing in energy-efficient technologies, like LED retrofits, can yield quick returns.
• Water management, product recyclability and packaging innovation were also noted as critical areas for improving ROI.
• PACE (Property Assessed Clean Energy) financing was mentioned to support sustainability initiatives.
• Close collaboration between the government and the hospitality industry is essential.
• The lodging industry must continue to self-advocate to ensure that regulations are beneficial rather than burdensome.

How Entegra can help: Working with experienced energy experts as part of Sodexo, Entegra Energy Services provides support for navigating energy markets and identifying opportunities for investment and savings. Check out Controlling rising energy costs to learn more.

The panelists for Green lodging: Is sustainability good for business? Investing in sustainable lodging boosts valuation included:

• JoAnna Abrams, Founder and CEO of MindClick, which rates the environmental health performance of manufacturers and their products
• Bharati Bhosale, Director of Global Sustainability, Hilton
• Bali Kumar, Chief Operating Officer, PACE Loan Group
• Jeffrey Simmons, VP of Supply Management, Hospitality
• Moderator: Rhiannon Jacobsen, Managing Director of U.S. Market Transformation and Development, U.S. Green Building Council

Contact us to speak with an Entegra representative about how we help you meet and exceed your corporate responsibility goals, while saving on almost everything you buy.

Learn more about how Entegra supports the lodging industry in this video.

_{¹HubSpot: How Video Consumption is Changing in 2024}