Business Proposal for Hotel Sustainability Plan

Memorandum

To: Daniel D. McLean, Chief Operating Officer

From: Ryan-Kirk Bautista, Chief Engineer

Date: March 4, 2014

RE: Sustainability Initiative Recommendations

I am respectfully submitting this memorandum to the members of the Board of Directors for purposes of recommending concerns regarding the subject. The report addresses the following: (a) range of sustainability options for our hotel; (b) our industry leaders and their efforts; and (c) recommendations pertaining to feasible approaches.

RANGE OF SUSTAINABILITY OPTIONS

Comprehensive Recycling

The first step to achieving a higher long-term value of our property is to recycle. Statistically, recycling is noticed by customers more than any other green initiative. This would reduce our waste hauling expenses, increases employee and customer loyalty, as well as obtain a higher level of competitive advantage.1 This can be done through a new recycling initiative across all three boards of the property: administrative, public, and service areas. By including separated bins in guest rooms, offices, public areas, and meeting rooms, all three areas of our building that require a significant improvement at a long-term low-cost are covered. A few of the many products include: paper materials used for on-property marketing, plastic bathroom amenities, and used light bulbs. The Florida Department of Environmental Protection has launched a Recycling Recognition Program that has been developed to record and recognize recycling efforts across the state. This avenue would be wise to explore considering the public relations and social responsibility if we would like to explore that avenue.

Reducing Energy Use

The entire property can benefit from a more energy-efficient approach with lighting and occupancy sensors. Options in respect to lighting include changing to ENERGY STAR efficient light bulbs which are found to use 75% less energy and heat than our current incandescent light bulbs and lasts about ten times longer.2 Alternatively, by switching to new LED lighting from GE, the Las Vegas Sands Corp. has saved nearly 4.1 million kilowatt hours of electricity a year.3 We may implement this throughout the entire property in all facilities to greater reduce our energy use and overall costs. We may take a cost-effective approach and replace and recycle our old light bulbs progressively throughout the entire property. As more codes are becoming more stringent, the implementation of occupancy sensors would be another great way to reduce the amount of energy we use in unoccupied rooms. Rooms are often unoccupied by guests or associates and lights are left turned on leaving the responsibility to others. Being open 24 hours, installing these in conference, office, and storage rooms would be a step towards adding another LEED certified change to our facility.

Green Hotel Amenities There has been a growth in bathroom laundry programs and enhanced guestroom controls, and green toiletries. Brands such as Marriott, Intercontinental, and Hyatt have implemented programs that allow guests to elevate or place towels on a rack to signify to their staff that they would like to contribute to their green initiatives. Not only would this reduce the amount of water use, but also labor and transportation costs. By allowing guests to regulate the temperature in their rooms we can save on unused and unnecessary energy use. According to IHG the better overall air quality throughout the entire property is contributed by their new systems that monitor CO2 levels and health and comfort for guests and employees.4 In regards to toiletries, there are alternative sources that produce bottles made from recycled plastic. If our property would like to partner with the Clean the World Foundation they also collect used bars of soap and bottles if you would like to go with a cost-free approach.

SUSTAINABILITY LEADERS IN OUR INDUSTRY

Wyndham Worldwide: Wyndham Green

The leader in environmental performance in our industry, Wyndham, has worked with their sourcing department to seek suppliers and vendors that meet their sustainability mission conserving  natural  resource,  protecting  nature’s  habitats,  and  reducing  pollution. They are recognized uniquely for their Green Uniform Program that uses textiles produced by recycled polyester fibers spun from plastic beverage bottles. These uniforms reduce plastic use, do not require professional laundering, and are cleaned using minimal amounts of chemicals due to their specialized fabric; ultimately providing cost-savings. 5

MGM Resort International: Green Advantage

With  twelve  Green  Key  certifications,  MGM’s  Green Advantage Program is coveted due to their partnerships with local education institutions to provide them with reusable paper products at no- cost, installing AutoFlame computerized combustion controls to reduce natural gas consumption, and Variable Frequency Drives to automatically regulate electricity flow to cooling systems. 6 Their properties are also converting to citrus-based non-ammoniated and non-bleach based cleaning products—reducing both the need for protective gear and harsh chemicals.

Hyatt Hotels: Hyatt Thrive

Hyatt has taken their sustainable initiatives to the employee level by implementing various green programs called (a) My Green Touches, (b) Hyatt Earth Training Program, and (c) Meet and Be Green.7

(a) A program that incorporates sustainable actions all facets of their property can incorporate into their daily job functions

(b) An environmental responsibility program that focuses on creating a culture for employees for both the on-property and home levels through interactive workshops.

(c) A program that provides meeting planners with ten ways to make their meetings greener. It includes a three percent discount incentive for the environmental commitment.

SUSTAINABILITY RECOMMENDATIONS

Geothermal Approach: Ground Source Heat Pumps

Ground source heat pumps would essential HVAC costs up to 80%, lower our reliance on fossil fuels, and eliminate above ground equipment. The technology behind the system draws heat, using a liquid, to absorb natural heat from the earth or aquifer and is transferred to and from the building by a heat sink that pumps warm air into the facility. These heat pumps can also work against the natural flow of heat and can also be used to cool hot buildings in the summer by transferring heat from the building back into the ground. This technology also works during any season at any above-ground temperature due the relatively constant temperature of underground, addressing any concerns you may have with inconsistency.8 To make things better, this system also generates energy to produce a free hot water source. In regards to cost, this one-time starting cost may seem heavy; the payback from this investment is done in an average of three to five years, it is quieter and lasts almost two times longer than our industrial heaters. Localization also reduces our carbon footprint and fortunately for our property, Florida is one of the largest exporters of geothermal heat pump systems and installation.9

Water Management Program

Water is a scarce resource. Water use in hotel properties is an average 10% of our utility bills— which includes the purchase and disposing of waste and with a new water management system we can save up to 50% more water.10 We may begin by starting to log water consumption, educating our staff, and by implementing new water systems. Although a long-term investment, we should audit where our major water costs are and install fixtures where necessary now to forecast spending. Using programs and seminars to educate our staff will help assist them in understanding this new implementation. As for new water systems introducing the towel reuse program, low flow showerheads, and water efficient taps are a few of our more cost-effective routes without reducing the guest experience. Installation is also not specialized, so training for my team would be extremely minimal. As aforementioned, all our industry leaders are working towards water management initiatives so auditing, analyzing, and introducing a new water management system is the first step. Our long-term, more expensive goals for our property to include in the future are: manual watering, ozone laundry systems, and recycling using grey water system11but we will plan those as the results see feet. As for now, we must focus on what our property can do before making these costly choices. I assure you that the returns on investment and projected value added to our hotel implementing these initiatives reflect the competitive advantage you are looking for. After careful review with the Board of Directors, please direct any questions you may have to my email. Thank you

References

1 http://www.ct.gov/deep/lib/deep/p2/business_industry/hospitality/fall2011workshop/ waste_management_for_hotels_and_restaurants.pdf 2 http://www.energystar.gov/certified-products/detail/light_bulbs 3 http://www.gelighting.com/LightingWeb/na/case-studies/las-vegas-sands-corporation.jsp 4 http://innovation.ihgplc.com/bedroom/enhanced-guest-room-controls 5 http://www.wyndhamworldwide.com/news-media/press-releases/wyndham-hotels-introduce- green-uniforms-spun-plastic-0 6 https://www.mgmresorts.com/company/environmental-responsibility-more.htm 7 http://thrive.hyatt.com/globalInitiatives.html 8 http://www.forbes.com/sites/tomkonrad/2014/02/28/how-geothermal-heat-pumps-can-soar-like- solar/ 9 http://www.tampabay.com/news/business/energy/how-does-geothermal-energy-work-use-the- earth-to-cool-your-home/987569 10 http://www.greenhotelier.org/know-how-guides/water-management-and-responsibility-in- hotels/ 11 http://energy.gov/energysaver/articles/geothermal-heat-pumps