An often hidden element in the hospitality sector's drive for energy efficiency is the role that water plays. While the commercial argument for better energy management continues to strengthen in hotel groups and independents with every passing week, the focus on water management is often slightly blurred, placed behind prime targets like lighting and smart controls for lighting and HVAC.

The drive to reduce consumption of the main utilities is fuelled by rising unit costs, commitments to cut carbon footprint (CO2 emissions) and building a better bottom line that has the welcome effect of increasing market valuation.

Now, it is true that recently we have seen a temporary respite in energy prices that saw a doubling of unit costs in just 10 years, with the downward pressure on oil markets. While this is very welcome, the market is rising again and most analysts predict that energy costs will continue to rise in the mid to long term.

It is a movement that all hospitality businesses have to factor in to their business projections, hence continued and growing interest in the financial case for going green across all parts of the industry, from small to large enterprises.

In this context, better water management in any property is essential for the most effective and sustainable energy efficiency strategy. We know that the development of such a strategy is not an easy exercise and requires commitment, time and resources but there are now many good field studies that amplify the case for root-and-branch change.

As I indicated in previous articles on LED lighting and HVAC, the energy-saving agenda can be challenging because of gaps in appropriate knowledge as well as the devil of time pressures, allied to a sometimes unclear view in a property of who holds the responsibility for "sustainability" or "green" decisions.

From experience, we know that this increasingly vital role can be assigned to the engineering department. In my view, the decision-making function can effectively rest with the finance department, allowing maintenance staff to plan and act.

Overall, we have seen the rapid development of better energy efficiency solutions and these have helped to add confidence in the sector's drive for reduce consumption, with much improved payback periods.

Guest behaviour

In the "always on, always moving" hospitality industry rapid staff changes and the endless flux of business and leisure guests it is a challenge for management to inculcate best energy efficiency practices through effective staff training while balancing the desires and needs of the people who pay with best utilities management. And with the best will in the world, it is true that guest behaviour in terms of utility consumption is almost naturally much higher than when they are at home.

It does take considerable time to embed a "business green" culture anywhere, but changing staff behaviour and attitudes is an element in energy efficiency that cannot be overlooked. However, the biggest strides towards sustainable cost and carbon reductions are without doubt in the technology sphere.

It almost goes without saying that these technical deployments have to be invisible to those who stay at a property. Guest satisfaction is paramount and energy efficiency solutions cannot impact negatively on the daily work of a hotel, either during installation or at any time after that.

Alongside the invisibility cloak around technology, it is very important that sustainability in the form of energy efficiency strategies is based on realistic, robust business logic that is supported by crystal clear financials, not least the schedules for return on investment.

Measurement, then, is the crucial element in any project looking to cut utility consumption. Hotel management must be provided with the means to accurately assess and understand historic, current and future consumption rates. This knowledge will lead to the identification of rapid ROI measures and help with prioritising investment decisions.

The technical solutions in an energy efficiency project should then provide the means to monitor in a way that provide detailed feedback to management. This data should facilitate agile response and adjustments while keeping track of savings against ROI schedules.

What can be done?

With this in mind, targeting water use in a hotel has the proven potential to be measurable and transparent in the ways it delivers big savings. The effect on utility consumption is two-fold, first reducing prime costs of water and then cutting energy used in heating and pumping, which has a further effect of reducing any carbon taxes.

We have seen recent examples in hotel groups that have made the commitment to reducing water consumption with all the benefits that brings by first trialling solutions like eco showers and eco taps, together with magically simple tap aerators, then rolling out these fittings across the entire estate.

And with the right choices, the guest will not even notice that he or she is making a contribution to energy-saving, carbon reductions every time they step under the shower or turn on the tap. A well manufactured eco shower head should mix air with the water stream in a way that has no discernible effect on guest experience but reduces water consumed by more than 50%. It is important that the shower head is not simply a restrictor, which by every measure is an inadequate solution.

The same applies to eco taps, which work in a similar way to eco showers, mixing air with the water flow to cut consumption by half. Tap aerators do this too and are boon to any property that wants to keep its current fittings, provided the style fits with available aerators.

One UK hotel group has reported that it achieved payback inside eight months and will achieve savings of more than £130,000 through the installation of these water and energy saving fittings. It also underlines that there has been not one negative comment from guests since the project was completed.

The hotel group has combined better water management with other energy efficiencies such as LED lighting and the management has recently advised that it will save around £360,000 a year with the combined solutions.

Property valuation

The ever-moving UK and European energy market is set to see a further doubling of prices over the next ten years, if we are to believe expert forecasts. There may well be structural and commercial developments that affect this upward movement but it is certain that energy costs must rise ahead of inflation as the region transforms its energy generation networks and markets.

In terms of hotel business valuation, there is also an impact here so by reducing costs through installation of water and energy saving solutions, a hotel on the market as a going concern can generate a massive difference in asset value. For example, if it achieves utility savings of £100,000 then this can be multiplied up to 10 times, adding £1 million to a valuation in the right market.

All these very positive factors have encouraged the industry to engage more actively on the reduction of utility consumption so helping to better manage this second largest cost after staffing, and add value in many different ways.