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Hospitality

Hotels Are Energy-Intensive by Design. That Is Also Why the Audit Returns Are So High.

Hotels are among the most energy-intensive commercial building types in America. They operate 24/7, year-round, with loads that span residential (guest rooms), food service (kitchen, banquet), athletic (pool, fitness), and commercial office (meeting rooms, back-of-house) categories — often on a single electrical service.

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HospitalityApril 8, 2025Michael Steifman, CEO

Hotels are among the most energy-intensive commercial building types in America. They operate 24/7, year-round, with loads that span residential (guest rooms), food service (kitchen, banquet), athletic (pool, fitness), and commercial office (meeting rooms, back-of-house) categories — often on a single electrical service.

Energy Star's Commercial Buildings Benchmarking Data sets the median full-service hotel at $2,196 per available room per year in total energy costs. A 300-room full-service hotel is spending approximately $658,000 annually on electricity, gas, water, and sewer before any billing errors are considered.

“Recovering $75,000 in utility billing errors at a 10% EBITDA margin is the economic equivalent of adding $750,000 in hotel revenue — without adding a single room, a single employee, or a single amenity.”— Michael Steifman, Founder & CEO, UtiliSave®

The complexity of hotel energy accounts — multiple meters, multiple fuels, mixed-use tariff applicability, seasonal load variations — creates a correspondingly complex error environment. Rate schedule misclassifications are particularly common in hotels where the combined load profile does not fit neatly into any standard commercial or residential tariff category.

Our hotel audit work consistently finds recoverable errors in the range of 2-15% of total energy spend, per year. On a $658,000 portfolio, that is $13,500 to $98,700 in refunds — before accounting for the ongoing savings from corrected billing. At a 10% EBITDA margin, recovering $75,000 is the equivalent of adding $750,000 in revenue.