Emerald Blog

The Stakes are Rising: Hotels Need a Sustainability Strategy Now, Not Later

Written by Laura Steinbrink | Jul 10, 2025 4:02:08 PM

Imagine opening your booking engine tomorrow and finding every other listing wearing a shiny “eco-certified” badge, except yours. That moment is closer than most hoteliers think. Buildings already account for nearly 40% of the world’s energy-related CO₂, and 83% of travelers believe sustainability is an important part of tourism. 

 

Company-specific performance targets, investor scorecards, and city carbon caps are all tightening in sync. Early movers are pocketing lower utility bills, rate premiums, and cheaper financing, while those who wait risk scrambling and overpaying to catch up. 

 

What’s Driving the Sustainability Surge in Hospitality? 

Guest sentiment is only the tip of the (melting) iceberg. Booking.com’s data show that four in five travelers actively seek green accommodations and many will pay more for them. At the corporate level, giants such as Marriott’s Serve 360 platform and Hilton’s Travel with Purpose 2030 Goals push rigorous property-level reporting. Cities are adding another layer of pressure: New York’s Local Law 97 (LL97) fines non-compliant large buildings $268 per excess ton of CO₂e each year, while Boston’s BERDO 2.0 can levy $1,000 per day for large hotels that miss their limits. 

 

Meanwhile, rising utility costs are tightening margins. U.S. commercial electricity prices have jumped more than 20% over the past three years, and energy remains one of the top expenses for hotel operations. That makes efficiency upgrades more than a green gesture—they’re a financial imperative. From state-backed C-PACE loans for deep retrofits to federal tax incentives like Section 179D—now worth up to $5 per square foot for projects that begin before December 31, 2026—today’s smartest sustainability moves also happen to be bottom-line decisions.

  

The Hidden Price of Waiting 

 

Runaway Operating Costs 

The hospitality industry spends $3.7 billion on energy annually, with electricity accounting for 60–70% of a typical hotel’s utility budget. The Department of Energy pegs energy costs at roughly $2,200 per room annually. With rate hikes forecast across North America, every inefficient chiller, air conditioner, and incandescent light quietly drains profits. 

 

Compliance Scramble & Capital Surprises 

Ignore the calendar and you’ll pay twice: first for premium “rush-order” retrofits, and then for empty rooms while jackhammers echo through the lobby. Big-ticket fixes like onsite renewables and building envelope upgrades routinely take 18-36 months from design to commissioning, so kicking the can even one budget cycle can be fatal.  

 

Seattle’s new Building Emissions Performance Standard (BEPS) makes the stakes plain: miss the 2031 greenhouse-gas target and the city can levy up to $10 per square foot on non-residential buildings. For a 220,000 square-foot, 300-key hotel, that’s an eye-watering $2.2 million invoice, before the first contractor sets foot on-site and long before you start recouping lost revenue. 

 

Winning (or Losing) Bookings & Financing Opportunities 

Corporate travel managers now bake sustainability into sourcing: GBTA’s 2025 hotel-RFP playbook lists third-party certifications and room-night carbon footprints as must-fill fields. On the leisure side, Booking.com has retired its in-house Travel Sustainable badge and now spotlights properties with independent certification. It gives them a prominent label and a dedicated filter so eco-minded guests can zero in fast. Delay the data, and you don’t just slide down the booking page; you also slide off investors’ shortlists. Lenders increasingly price capital through ESG ratings and verifiable emissions reports. 

 

Four Pitfalls That Sink Hotel Sustainability Efforts 

1) Treating sustainability as a marketing checkbox. Vague claims invite green-washing backlash and miss real operational gains. 

 

2) Waiting too long to bring in technical expertise. Post-schematic energy modeling or retrofit planning often means expensive rework and missed incentives. 

 

3) Overlooking certification as a strategic tool. LEED, WELL, and ENERGY STAR shouldn’t be afterthoughts—they’re powerful frameworks that, when planned early, unlock rebates, marketing advantages, and operational benchmarks. 

 

4) Focusing only on construction, not operations. Without plans for long-term data tracking, vendor accountability, and facilities management, early gains fade fast. 

 

What a Smart Sustainability Strategy Includes 

A truly effective sustainability roadmap starts long before the first schematic line is drawn. Data-rich baseline sustainability assessments set hard performance targets, allowing design teams to test-drive HVAC choices, façade systems, and renewables on paper instead of on the balance sheet. From there, owners can pick the right certification, whether LEED, WELL, or ENERGY STAR, so the badge on the lobby wall matches both brand positioning and incentive opportunities like 179D or C-PACE.  

 

Crucially, the strategy must look past the grand opening: metered dashboards, recommissioning cycles, and sustainability facilities management plans help savings compound year after year. None of this happens in silos, so architects, engineers, contractors, asset managers, and operators all work from the same carbon budget and timeline, turning lofty ESG aspirations into measurable, bankable results. 

 

How Emerald Built Environments Moves Hotels From Vision to Verified Performance 

Emerald starts by translating a brand’s top-line environmental performance commitments into property-level KPIs, then builds a phased roadmap that owners, designers, and operators can all rally around. Our in-house team: 

 

  • For construction, we leverage whole-building energy modelling and life-cycle cost analyses to lock in low-carbon design decisions early. 
  • For existing buildings, our energy audits and facility assessments help you understand what capital investments will meet your objected performance goals 
  • Shepherds green building certification submissions (LEED, WELL, or ENERGY STAR, to name a few common choices), so certification isn’t a paperwork scramble. 
  • Monitors post-occupancy performance with dashboards that flag drift before it erodes savings. 

 

As part of Crete United, we plug clients into nationwide MEP expertise, so the same partner network that models your heat-pump loop can service it five years later.  

 

Result: fewer surprises, faster payback, and happier guests. (See how a Midwest apartment complex cut energy use 50% in our recent retrofit case study.) 

 

Act Now to Stay Ahead 

Hotels that lead today won’t just tick compliance boxes; they’ll bank lower energy bills, win asset-value premiums, and earn favorable reviews. With buildings responsible for nearly 40 % of global emissions, and hospitality among the most energy-intensive slices of that pie, the sector’s climate math is changing fast. A clear sustainability strategy pays off long before your next audit or RFP hits the inbox. 

 

Start building smarter, talk to Emerald today. Because the only thing costlier than investing in sustainability is wishing you had done it sooner.