The hotel industry is currently in an upswing. However, while revenues are increasing, costs are rising as well. Energy represents one of the few cost elements within a hotel's control.
Large hotels (i.e., those with 500 to 1,000 rooms or more) represent an important market segment. These huge facilities have more in common from an energy standpoint with a small university than with a small business hotel or roadside motel. They often include casino gaming, multiple restaurants, nightclubs, spas, health clubs, movie theaters, and shops. These facilities occupy millions of square feet of building space, and their energy use intensity per square foot is much higher than that of a typical business hotel.
What can CHP do for Hotels and Casinos?
Combined heat and power can be an excellent solution for controlling energy costs while improving the reliability of power supply for your hotel. With CHP your hotel can:
- Reduce operating costs and control rising energy costs
- Ensure the availability of reliable hot water and electricity supply
- Increase energy efficiency and improvement environmental performance
Current Status
Ninety-eight hotels in the United States currently have CHP systems, representing more than 63 MW of electricity capacity. Many of these systems were installed during the late 1980s and are continuing to operate reliably and efficiently today.1 Texas is home to two such systems with a total capacity of 355 kW. One was installed at the Sheraton Hotel in Denton in 1988 and the other was installed at the Sheraton Hotel on South Padre Island in 1990. While unconfirmed, it is assumed that both of these systems are still in operation.
Future Potential
The market analysis for hotels and casinos developed by the U.S. EPA's Combined Heat and Power Partnership shows that more than 9,000 of the nearly 48,000 hotels in the United States have energy characteristics suitable for current CHP technology. More than 1,000 of these sites are likely to meet a simple payback on their investment within 5 years or less.
The total economic potential for hotels in the U.S. is 1,456 MW.2 In the Gulf Coast Region there is a total economic potential of 211 MW divided between Louisiana (61 MW) and Texas (150 MW). The simple payback period for hotels with at least 1000 rooms is about 5 years or less in these two states.
|
Is My Hotel a Good Fit for CHP?
- Do you have more than 100 rooms?*
- Do you pay more than 7 cents per kWh for electricity?*
- Have you already implemented other energy efficiency measures?
- Are you concerned about rising utility costs?
- Do your guests complain of insufficient hot water?
- Has your hotel ever experienced a utility outage?
- Does your hotel have a central chilled water system?
- Are you planning to add new boilers or replace existing boilers?
If you answered "yes" to three or more of these questions, your hotel might be a good candidate for CHP.
* If the answer to either of these first two questions is "no," CHP probably will not be a strong economic or technical fit for your hotel. Please consider the many other energy efficiency measures available to hotels to decrease energy costs and improve facility operations. The EPA ENERGY STAR website is good place begin your research: http://www.energystar.gov/hospitality. |
Case Studies
- Embassy Suites Hotel - San Luis Obispo, CA - The Embassy Suites Hotel is a full-service hotel with 196 guest rooms, 11 meeting rooms, a pool and fitness center, and a restaurant and lounge. EPA CHP Partner PowerHouse Energy (PHE) installed an 85 kW CHP system at the hotel in July 2005.
- Starwood Sheraton New York Hotel and Towers - New York, NY - In June 2005, EPA CHP Partner Starwood Hotels and Resorts Worldwide, Inc. began operating a 250-kW fuel cell CHP system at the Sheraton New York Hotel and Towers, a 1,750-room facility and the brand's flagship property. The fuel cell was manufactured by EPA CHP Partner FuelCell Energy and is owned, operated and maintained by PPL Corporation.
- Harrah's Rio All Suite Hotel and Casino - Las Vegas, NV - The Rio All Suite Hotel and Casino is a high-end casino resort located less than a mile from the Las Vegas Strip. The hotel offers 2,800 suites, shows and lounges, nonstop gaming, as well as many luxuries associated with top resorts. The Rio is the first Las Vegas casino to install a CHP system. The 4.9-MW system began operating on May 1, 2004 and generates 40 percent of the electricity, 60 percent of the hot water, and 65 percent of the heating requirements of the resort.
- Additional case studies - U.S. DOE ITP database
Additional Resources
References
- In Texas, the Sheraton Hotel in Denton and the Sheraton South Padre Island Hotel in South Padre both installed CHP systems during this time period.
- Energy and Environmental Analysis, Inc., "CHP in the Hotel and Casino Market Sectors" (prepared for U.S. EPA CHP Partnership), December 2005