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Jordan Hollander
CEO @ HotelTechReport
Jordan is the co-founder of Hotel Tech Report, the hotel industry's app store where millions of professionals discover tech tools to transform their businesses. He was previously on the Global Partnerships team at Starwood Hotels & Resorts. Prior to his work with SPG, Jordan was Director of Business Development at MWT Hospitality and an equity analyst at Wells Capital Management. Jordan received his MBA from Northwestern’s Kellogg School of Management where he was a Zell Global Entrepreneurship Scholar and a Pritzker Group Venture Fellow.
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What it does:
Controls systems that use energy: An energy management system is the brain that powers your hotel’s HVAC systems, lighting systems, sockets, and even smart devices like blinds, locks, and TVs in both guestrooms and public spaces.
Applies schedules, rules, and logic to reduce energy consumption: Based on manual input or algorithms, an EMS strategically controls building systems to optimize for energy and cost savings. For instance, you can program the system to turn exterior lights on at 9pm and off at 7am. Or, you could program the system to keep your lobby temperature at 68 degrees Fahrenheit, and the system will adjust the HVAC in response to the outdoor temperature, sunlight, and occupancy.
Monitors real-time usage and performance: The EMS’s dashboard allows you to track energy usage in real-time, so you can see how many lights are on or how many air conditioning units are running at any given moment. In addition, you can analyze consumption and cost savings over time with robust reporting features.
How it adds value:
Cuts energy usage and utility costs. With more intelligent and strategic control over your building systems, you can reduce energy usage, which, in turn, reduces your energy costs. It’s not unheard of for a hotel to reduce energy costs by 35-45% after implementing an energy management system.
Enhances the guest experience. The thought of decreasing energy costs might conjure images of guests shivering in winter months, unable to turn the heat above a certain threshold. In fact, the opposite is true; guests and employees can be even more comfortable with an EMS in place because the system ensures all devices are functional at all times. The savings occur when the system eliminates unnecessary energy usage like heating unoccupied meeting rooms.
Climate control: A hallmark feature of an energy management system is the ability to control HVAC systems and set schedules or rules for their operation. For example, you might want to set a minimum threshold for air conditioning use or turn off heating when rooms are unoccupied.
Smart lighting: Like with HVAC systems, an energy management system can control lighting systems in guestrooms, public areas, and back-of-house spaces. You can program schedules in the EMS so that lights turn on or off at specific times, and the system can alert you when lightbulbs need to be replaced.
Automatic shutdown: Your EMS can reduce electricity usage by turning lights off or cutting power to outlets when the system senses that a guestroom is unoccupied.
Operational alerts: Receive notifications about underperforming systems, appliances, and lights before they break so you can proactively fix or replace them before they break.
System management dashboard: Get a bird’s eye view into your entire hotel’s energy consumption from one central interface. You can easily see if any hardware needs maintenance and monitor usage in real-time.
Reporting: Better understand your energy usage, costs, savings, and runtime by room, floor, room type, building, or even across multiple properties with customizable reports.
Integrations: Your energy management system should integrate with your lighting system, climate control system, IoT devices, and utility meters for most effective use. In hotels, it’s also useful to connect your EMS to your property management system or building management system. Some energy management systems also offer open APIs so you can connect any other relevant software, like a business analytics tool.
Although the cost savings your hotel can achieve after implementing an EMS are significant, it’s worth noting that these systems are not cheap. However, many hotels find that the return on investment makes these systems quite valuable. On average, an EMS costs around $500 per room. For an 80-room midscale hotel, you can expect the initial investment to be roughly $40,000. A large luxury property with 350 rooms will fork over $175,000.
If you’re going to make a sizable investment in an energy management system, you don’t want to rush through implementation. The setup process involves connecting your existing building systems (lighting, HVAC, IoT devices) to your new energy management system, or you might install new devices if you’re replacing old systems or opening a new property. You’ll also connect the EMS to your energy meters so you can accurately track usage. During implementation, a customer support representative will also lead personalized training webinars for your team so that everyone feels comfortable using the system. In the early days of using your EMS, you can configure personalized reports that make the metrics you want to track accessible at the click of a button.
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