The failure to convert hotels to become net-zero carbon emitters has a major impact on the bottom line by incurring carbon credit expenses or penalties as well as excess energy consumption levels.
To achieve the intended goal of decarbonization by 2050, the EU funded a research project named Carbon Risk Real Estate Monitor .
It is important to emphasize that both metrics vary heavily by locale based on the carbon intensity of the electricity grid today and the energy use on site due to climate conditions among other factors.
The failure of a building or infrastructure to reduce GHG emissions and energy use below the pathway target at any point in the future results in a so-called ‘stranded’ asset.
The point in time when ecologic obsolescence is reached is illustrated in the detail below by example of a typical Sydney 5-star hotel and the two Australian CRRREM pathways.
The chart uses the example of a hypothetical Sydney 5-star hotel of 500 hotels rooms and 50,000 sqm GFA with a carbon footprint based on the average value from the Cornell Hotel Sustainability Benchmarking Index .
All cities are based on the same hypothetical asset of 500 room with a GFA of 50,000 m2.
All stakeholders in the industry should work towards meeting CRREM pathway limits and reduce the industry’s carbon footprint and energy use for existing properties.
Dan Voellm, MRICS is the CEO & Founder of AP Hospitality Advisors, responsible for all aspects of the firm.