David Scott, Head of Consumer Industries

Eddie McKeever, Managing Director, McKeever Hotels

John Angus, Managing Director, Switch Management

Holly Hansen-Maughan, Sector Manager for Retrofit and Construction, The School

The hospitality sector, with its nearly 24/7 energy demands, is uniquely positioned to benefit from retrofitting initiatives. There are approximately 10,000 hotels in the UK, from large hotel chains to independent operators, and becoming more energy efficient could help many of them achieve a wide range of benefits.

Increase asset value

Energy-efficient buildings attract higher rates and occupancy levels, helping to differentiate properties in a competitive market. According to David Scott, energy performance now plays a crucial role in driving value for both five-star operators and budget hotels, influencing consumer choices and staff retention.

Critically, investors and landlords are also demanding more information on carbon measurements to ensure they meet legal requirements or market expectations.

Reduce operating costs

Hotels operate with near constant energy consumption — from lighting and heating to air conditioning and guest amenities. Reducing energy usage directly cuts operating costs, a major benefit in a sector where fixed costs are high.

Meet changing consumer expectations

As consumer awareness of sustainability grows, more guests expect hotels to incorporate eco-friendly practices. Eddie McKeever emphasised that this shift in behaviour has made sustainability a critical consideration in both new builds and refurbishments across his hotel portfolio in Ireland.

When Eddie’s family-owned business took over the historic Dunadry Hotel & Gardens property in 2017, it was outdated and financially underperforming, having lost its four-star rating. With a strategic retrofit, Eddie turned around the hotel’s fortunes by focusing on long-term sustainability and efficiency improvements.

The Dunadry’s energy efficiency measures included:

• Installing new insulation and double-glazed windows
• Upgrading from oil-fired boilers to more efficient gas boilers
• Implementing LED lighting throughout the property
• Introducing Heatboss, a smart energy management solution

These changes reduced energy costs by 25% and significantly improved the hotel’s EBITDA, helping to more than double revenue and restore the property to four-star status.

The upgrades also made maintenance more efficient, reducing the time spent managing day-to-day operations.

A recurring theme in the discussion was that sustainability in retrofitting goes beyond immediate cost savings. Eddie highlighted how his business has adopted a more forward-thinking approach to sustainability. Initially, projects with a payback period longer than three years were deemed less attractive. Now, however, the focus has shifted to ensuring long-term benefits.

The mindset has changed from simply focusing on short-term gains to considering whether the retrofit is the right thing to do for long-term sustainability.

Protecting asset value

John Angus of Switch Management [featured on our Future Fit hub] emphasised the importance of taking a measured, strategic approach to retrofitting. Without proper measurement, it’s difficult to gauge the effectiveness of energy-saving initiatives, he said.

His key recommendation for any business embarking on a retrofit journey is to start with a Building Management System (BMS). This allows companies to monitor every action they take and measure the results in terms of energy usage, carbon footprint, and overall efficiency.

By systematically measuring energy use, businesses can close the gap between their carbon footprint and desired sustainability goals, ensuring their assets don’t become "stranded" in the future due to high retrofit costs outweighing asset value. John also highlighted the growing importance of carbon neutrality, with 2050 set as a crucial target for many businesses.

Read our article on Stranded assets. 

Start with an energy audit

Understand your current energy usage by conducting a comprehensive energy audit. This will help prioritise where retrofitting efforts will have the most impact.

Install Smart Building Management Systems (BMS)

A BMS allows you to monitor and control your hotel’s energy consumption in real time. It helps identify where you can make savings and ensures you are aware of how every retrofit decision affects your carbon footprint.

Target the low-hanging fruit

Implement immediate cost savings by focusing on high-impact areas like heating, ventilation, and air conditioning (HVAC) systems, which often account for the highest energy usage in hotels. Swapping out inefficient boilers or upgrading air conditioning systems can yield significantly reduced long-term operating costs.

Engage your guests in sustainability efforts

Educating guests about your sustainability initiatives can enhance their experience while reinforcing your brand’s commitment to eco-friendly practices. For instance, some hotels offer guests the option to skip daily room cleaning, with the savings donated to local charities.

Partner with sustainable suppliers

As all panellists pointed out, working with suppliers who share your sustainability values can help raise the bar for the entire industry. From sourcing energy-efficient equipment to reducing delivery emissions, aligning with the right partners is crucial.

With thoughtful planning and a long-term commitment to energy efficiency, retrofitting could future-proof your property, protect your bottom line, and enhance your brand reputation in an increasingly eco-conscious marketplace.

For more information on making your business premises more energy efficient, visit: Retrofit

Skill up on sustainability for free: Home | Supply Chain Sustainability School

For retrofit-specific learning: Supply Chain Sustainability School