Table 1 Sustainable hotel asset... | Emerald Publishing

Table 1

Sustainable hotel asset management practices and benefits

Asset management focus	Sustainability practice	Benefit to asset
Investment and Portfolio Strategy	Incorporate climate risk and ESG criteria into asset valuation and acquisition decisions	Avoids overvaluation of assets with high carbon or climate risk; targets investments that will hold value under future regulations
Capital Expenditure Planning	During renovations or major property improvements, install energy-efficient and water-saving systems (LED lighting, efficient HVAC, low-flow fixtures, etc.)	Reduces utility costs and carbon footprint immediately. Increases asset value by improving NOI; yields high ROI when done during planned projects
Operations Oversight	Implement a monitoring system for energy, water, and waste; set reduction targets and track performance regularly	Identifies waste and inefficiencies in real time. Supports continuous improvement and cost savings; data can be used in marketing and valuation to showcase sustainability achievements
Human Capital Management	Train staff in sustainable practices and empower “green teams”; link staff incentives or recognition to sustainability goals	Engages employees in cost-saving ideas (e.g., spotting water leaks). Improves staff morale and retention; sustainability-minded employees also enhance guest experiences and the hotel's reputation
Owner–Operator Alignment	Align management contract terms with sustainability objectives (e.g. include shared savings clauses or sustainability reporting requirements). Hold regular owner–operator meetings to review sustainability progress	Ensures both owner and operator are committed to initiatives. Breaks down incentive barriers and builds trust; enables faster implementation of projects that benefit both parties by resolving split incentives
Risk Management and Resilience	Conduct climate risk scenario analyses and invest in resilience measures (e.g. elevating critical equipment, installing backup power generators)	Protects the asset from severe weather damage and operational disruptions. Mitigates liability and insurance costs; preserves long-term asset value in the face of climate risks

Asset management focus	Sustainability practice	Benefit to asset
Investment and Portfolio Strategy	Incorporate climate risk and ESG criteria into asset valuation and acquisition decisions	Avoids overvaluation of assets with high carbon or climate risk; targets investments that will hold value under future regulations
Capital Expenditure Planning	During renovations or major property improvements, install energy-efficient and water-saving systems (LED lighting, efficient HVAC, low-flow fixtures, etc.)	Reduces utility costs and carbon footprint immediately. Increases asset value by improving NOI; yields high ROI when done during planned projects
Operations Oversight	Implement a monitoring system for energy, water, and waste; set reduction targets and track performance regularly	Identifies waste and inefficiencies in real time. Supports continuous improvement and cost savings; data can be used in marketing and valuation to showcase sustainability achievements
Human Capital Management	Train staff in sustainable practices and empower “green teams”; link staff incentives or recognition to sustainability goals	Engages employees in cost-saving ideas (e.g., spotting water leaks). Improves staff morale and retention; sustainability-minded employees also enhance guest experiences and the hotel's reputation
Owner–Operator Alignment	Align management contract terms with sustainability objectives (e.g. include shared savings clauses or sustainability reporting requirements). Hold regular owner–operator meetings to review sustainability progress	Ensures both owner and operator are committed to initiatives. Breaks down incentive barriers and builds trust; enables faster implementation of projects that benefit both parties by resolving split incentives
Risk Management and Resilience	Conduct climate risk scenario analyses and invest in resilience measures (e.g. elevating critical equipment, installing backup power generators)	Protects the asset from severe weather damage and operational disruptions. Mitigates liability and insurance costs; preserves long-term asset value in the face of climate risks