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Miles Kubo
John Lembo
President/COO Senior Director, Energy
North American Hotel
Operations
The Business Case for Energy
The Business Case for Energy
Efficiency:
Efficiency:
Case Studies of Hawaii Hotels
Case Studies of Hawaii Hotels
PCEA 2007
September 7, 2007 Energy Efficiency
Profiles of Hawaii Hotel
The Business Case for Efficiency
The National Perspective
The Starwood Perspective
The Westin Maui Case Study
Case Study of Hawaii Hotel
Questions and Answers
Energy Efficiency
Energy Efficiency
Profiles of Hawaii Hotel
Profiles of Hawaii Hotel
The Business Case for Efficiency
The Business Case for Efficiency
The National Perspective
The National Perspective
The Starwood Perspective
The Starwood Perspective
The Westin Maui Case Study
The Westin Maui Case Study
Case Study of Hawaii Hotel
Case Study of Hawaii Hotel
Questions and Answers
Questions and Answers Energy Savings
Solving the Puzzle
Solving the Puzzle
Energy
Finance
Rebates
Energy
Assessments
Energy
Efficiency
Sustainability
ECMs
Savings
Capital
Budgeting Energy Awareness
Cost of Light
100 Watt Incandescent Lamp
$ 300 per year Energy Awareness
Cost of Light
Light Bulb (incandescent lamp)
$ 0.50
7 replacements lamps (1000 hr)
$ 3.50
7 replacement labor ($10 ea)
$ 70.00
Power (100w * ~27¢kWh * 24/7)
$226.00
$300.00
Light Bulb (incandescent lamp)
Light Bulb (incandescent lamp)
$ 0.50
$ 0.50
7 replacements lamps (1000 hr)
7 replacements lamps (1000 hr)
$ 3.50
$ 3.50
7 replacement labor ($10 ea)
7 replacement labor ($10 ea)
$ 70.00
$ 70.00
Power (100w * ~27
Power (100w * ~27
¢
¢
kWh * 24/7)
kWh * 24/7)
$226.00
$226.00
$300.00
$300.00
Alternative (CFL)
$ 60.00
Alternative (CFL)
Alternative (CFL)
$ 60.00
$ 60.00 Hotel Characteristics
ENERGY USE PROFILE
HVAC
Lighting
Misc
Food Service
Water Heating
LIGHTING 23.6%
OTHER 29.3%
HVAC 42.1%
SOURCE: HECO
70%
HVAC 47.1
HVAC 47.1 Hotel Characteristics
24/7 Operations
Equipment-Intensive
Air Conditioning,
Lighting, Boilers,
Laundries, Pool
Heating, etc.
24/7 Operations
24/7 Operations
Equipment
Equipment
-
-
Intensive
Intensive
Air Conditioning,
Air Conditioning,
Lighting, Boilers,
Lighting, Boilers,
Laundries, Pool
Laundries, Pool
Heating, etc.
Heating, etc. Hotel Characteristics
Unique Uses
Function Spaces
Open-Air Artria
Guestroom Lanai
Leaky Buildings
Guest Comfort
Unique Uses
Unique Uses
Function Spaces
Function Spaces
Open
Open
-
-
Air
Air
Artria
Artria
Guestroom Lanai
Guestroom Lanai
Leaky Buildings
Leaky Buildings
Guest Comfort
Guest Comfort Hotel Characteristics
Age
System Designs
VAC only, no H
Humidity
Technologies
Age
Age
System Designs
System Designs
VAC only, no
VAC only, no
H
H
Humidity
Humidity
Technologies
Technologies Energy Consumption
800 Rooms
$2 to $4 Million
400 Rooms
$1 to $3 Million
200 Rooms
$0.5 to $1.5 Million
800 Rooms
800 Rooms
$2 to $4 Million
$2 to $4 Million
400 Rooms
400 Rooms
$1 to $3 Million
$1 to $3 Million
200 Rooms
200 Rooms
$0.5 to $1.5 Million
$0.5 to $1.5 Million
1/3 of Energy is Wasted
1/3 of Energy is Wasted Efficiency Measures
Lighting 1~3
yrs
Retro-commissioning
1~3 yrs
Sensors and Controls
2~4
yrs
VFDs on Pumps / Fans
2~4
yrs
Programmable Thermostats
3~5
yrs
EMCS
3~6
yrs
Replace inefficient equipment
4~6+
yrs
Lighting
Lighting
1~3 yrs
1~3 yrs
Retro
Retro
-
-
commissioning
commissioning
1~3 yrs
1~3 yrs
Sensors and Controls
Sensors and Controls
2~4
2~4
yrs
yrs
VFDs
VFDs
on Pumps / Fans
on Pumps / Fans
2~4
2~4
yrs
yrs
Programmable Thermostats
Programmable Thermostats
3~5
3~5
yrs
yrs
EMCS
EMCS
3~6
3~6
yrs
yrs
Replace inefficient equipment
Replace inefficient equipment
4~6+
4~6+
yrs
yrs Efficiency Measures
Replacing inefficient equipment
Premium efficient pumps & motors
High efficiency chillers
Variable-primary flow
Consider Renewables
Replacing inefficient equipment
Replacing inefficient equipment
Premium efficient pumps & motors
Premium efficient pumps & motors
High efficiency chillers
High efficiency chillers
Variable
Variable
-
-
primary flow
primary flow
Consider Renewables
Consider Renewables Innovative Technologies
Oil-less Centrifugal Compressors
Intelligent Exhaust Hood Controls
Intelligent Refrigeration Technologies
VFD Applications and Operations
Oil
Oil
-
-
less Centrifugal Compressors
less Centrifugal Compressors
Intelligent Exhaust Hood Controls
Intelligent Exhaust Hood Controls
Intelligent Refrigeration Technologies
Intelligent Refrigeration Technologies
VFD Applications and Operations
VFD Applications and Operations The Business Case
Reduce 33.3% of HVAC & Lighting
Reduce 33.3% of HVAC & Lighting
70% of $2,000,000 of Electricity
$1,400,000 on HVAC/Lighting
33.3% of HVAC/Lighting
$466,200 of Utility Savings
70% of $2,000,000 of Electricity
$1,400,000 on HVAC/Lighting
33.3% of HVAC/Lighting
$466,200 of Utility Savings
Challenge:
Challenge:
Challenge: The Business Case
If, 10% net operating income
$4,662,000
of sales
If, 10% net operating income
If, 10% net operating income
$4,662,000
$4,662,000
of sales
of sales
At $300 per night
15,540 rooms / year
to pay for inefficiency
At $300 per night
15,540
rooms / year
to pay for inefficiency
Reduce 33.3% of HVAC & Lighting
Reduce 33.3% of HVAC & Lighting
Challenge:
Challenge:
Challenge: Who is Starwood?
Who is Starwood?
Fortune 500 company (NYSE:HOT) with over
900 hotels in 80 countries Starwoods Presence
in Hawaii
Hawaii
Maui
Lanai
Molokai
Oahu
Kauai
Sheraton Kauai Resort
Princeville Resort
Sheraton Waikiki
Princess Kaiulani
Royal Hawaiian
Westin Moana Surfrider
W Honolulu Diamondhead
Westin Maui
Sheraton Maui
Westin Kaanapali Ocean
Resort Villas
Sheraton Keauhou Bay
Resort & Spa The U.S. Lodging Industry at Large*
48,000 Properties
4.4 million rooms
$122.7 billion in revenues
$57.36 in RevPAR
63.1% average occupancy
476,562
498
Over 500 rooms
396,544
1,062
300-500 rooms
836,554
4,182
150-299 rooms
1,532,477
14,432
75-149 rooms
1,160,329
27,416
Under 75 rooms
Number of Rooms
Property
By Size
*Data obtained from the American Hotel & Lodging Association According to the Alliance to Save Energy, the
lodging industry is the 4th most intensive user of
energy in the commercial sector
~ 350 TBtu used annually
- 7.2 BBtu/property
- 79.5 MMBtu/Room
~ 220 Bgal/yr water used
- 4.6 Mgal/yr per property
- 218 gal/day/room Mission & Vision
To manage and reduce the cost
To manage and reduce the cost
and consumption of fuel, water
and consumption of fuel, water
and power; to maintain our
and power; to maintain our
commitment to the environment
commitment to the environment
and to continuously work to
and to continuously work to
enhance the guest experience
enhance the guest experience Comprehensive Energy
Management
Supply Side
Demand Side
Six Sigma
The Environment
The Culture Supply Side
Supply Side
Cost of fuel, water and power
reduced through
Pay Less
Utility bill auditing & tariff
analysis
Service upgrades
Commodity management
Combined heat & power
- Largest user of fuel cell
energy in the private sector Demand Side
Use Less.
Reduce the usage of energy through
Implementation of energy
conservation measures such as
lighting, HVAC, controls, etc.
Enhanced operations and
maintenance of equipment
Test and install new technologies
Continuous commissioning
Retro-Commissioning
Re-Commissioning Demand Side Measures
Demand Side Measures
Lighting retrofits
Premium efficiency motor upgrades
Variable Speed Drives
High efficiency chillers
Building automation system upgrades
and installations
Water side economizers
Occupancy sensor technology
CO
2
Sensors
Ozone laundry treatment systems
Heat recovery systems
Building commissioning
Guest room control systems
Over $5 million in utility and state
incentives since 2001 Six Sigma
Process improvement
Program development
Project roll-out and implementation
Energy Efficiency
Guest Room Lighting
HVAC
Tracking & Reporting
D.M.A.I.C August 30, 2007
Six Sigma Kick-Starts Starwood
http://www.businessweek.com/innovate/content/aug2007/i
d20070830_103596_page_2.htm
The hotel chain says Six Sigma doesn't have
to stifle creativity, and points to its success in
developing profitable new programs for
guests
Six Sigma contd The Environment
The Environment
Being
Being
Green
Green
Helping to save the environment by
Helping to save the environment by
Reducing Greenhouse gas
(CO
(CO
2
2
)
)
emissions
Improving indoor air quality
Identifying opportunities for LEED
buildings
Implementing recycling programs
Purchasing green power
Purchasing green cleaning products The Culture
The Culture
Walk the walk
Walk the walk
it
it
s Everyone
s Everyone
s Business
s Business
Departmental best practices
I