Environmental consciousness is not a new trend—in fact, it is at the forefront of the minds of more and more consumers every day. Smart businesses, including hotels, pay attention to what interests their customers and act accordingly. Whether you have recently become an owner through a hotel sale or you are working to market your hotel property for sale, it can be in your strong financial interest to ‘go green’ in a number of areas related to your investment.
What Are My Business Benefits?
Recently, new tax legislation passed into U.S. law gives hotel owners increased incentives to ‘go green’ with their properties.
- Cost segregation revisions now allow owners to categorize some types of improvements along a quicker depreciation schedule than previously, allowing faster tax deductions for these actions.
- Use of alternative energy sources can provide a significant tax credit to hotel owners.
- By completing energy-efficient upgrades, hotel owners can garner additional tax benefits.
Additionally, you can qualify for the SBA 504 loan program if you either drop your energy consumption by 10% or create 10% (or more) of your own energy needs through such methods as solar panel installation or LED lighting retrofits.
What Are Some Other Benefits?
Many hotel customers are actively looking to ‘reward’ companies that appear to share their values with more businesses, so by aligning your hotel in order to emphasize ‘greener’ efforts, you may notice increased attention from customers specifically looking for businesses who do this.
What Are Some Improvements I Can Make?
There are numerous improvements you can make to your property, depending on your available funding and other resources. Here are a few categories to consider as you start an environmental review of your property:
Water and Energy Usage
By installing low-flow showerheads, low-flow toilets, and sink aerators, you can save both water and money. Are solar panels practical for your area of the country? Are there system changes you can make, such as using timers or dimmers, to use less energy on your lighting and HVAC systems?
Recycling
It should be easy and convenient for you and your guests to recycle common materials. Can you set up collection points in multiple places on each floor? There are also opportunities to responsibly recycle or dispose of larger or less common items your business may use, such as packaging foam, batteries, or used mattresses.
Inform Your Guests
Make sure to let your guests know the steps you’re taking toward environmental awareness, as well as what they can do to help. Highlight the linen reuse card when they check in. Have a flyer or card on display in the room with information they can use. Make sure they have easy access to recycling facilities on the property.
NewGen Advisory is committed to helping hotel investors succeed. Contact our expert hotel brokers today and ensure your investment prospers.