Energy Management Checklist: Best Practices for Hotels in 2026
From energy management technologies to operational strategies, there are a number of ways that hotel managers can reduce their energy consumption. And while some require infrastructure upgrades, and evolving guest expectations, hotel managers face a variety of challenges. And in meeting these challenges, new energy management best practices have arisen, enhancing profitability without compromising guest comfort.
In the hotel industry, energy consumption extends far beyond just keeping the lights on. It’s not only at the heart of every amenity and guest service that a hotel has to offer, it also impacts a range of hotel KPIs — from GOPPAR to RevPar to CPOR, and more. All hotel energy costs are operational costs, and so any reduction in a hotel’s overhead energy costs not only improves hotel profitability, but increases the value of that hotel. This begs the question: what can hotel managers do to reduce their energy costs? Well, the answer is quite a bit. And reaping the cost benefits of hotel energy management is as simple and straightforward as checking items off of your hotel management to-do list.
Average Energy Use Of Hotels In The United States
Energy consumption represents a significant cost center for hotels, impacting their bottom line and overall operational efficiency. In fact, as Forbes reports, “60-70% of [a hotel’s] utility costs are exclusively billed for electricity”. According to Energy Star, America’s 47,000 hotels spent $2,196 on average per available room each year on energy, with the hospitality industry worldwide spending $3.7 billion annually on energy. Fortunately, there are a number of energy management best practices hotel managers employ to reduce their energy costs and improve profitability.
1. Conduct a Property-Wide Energy Audit
This is the ground zero of any hotel energy management strategy. A full property audit identifies where energy is being wasted across HVAC systems, lighting, water heating, and other operational areas. These insights help hotel managers prioritize upgrades that deliver the greatest long-term savings and guest comfort benefits. Energy audits can uncover inefficiencies that are often overlooked in daily operations. Establishing a clear baseline not only reveals how energy is consumed but also helps justify future investments in energy management systems and HVAC optimization tools that improve efficiency across the property.
2. Benchmark Energy Usage Against Industry Standards
After identifying your property’s baseline performance, benchmarking helps put that data into context. Comparing your hotel’s energy use to industry standards using tools such as ENERGY STAR Portfolio Manager gives a clearer picture of where you stand, and where improvements can be made. Tracking metrics like Energy Cost per Occupied Room (ECOR) or total HVAC runtime helps hotel managers identify areas of overconsumption, seasonal trends, and performance gaps. Regular benchmarking also supports ongoing ESG and sustainability reporting, ensuring your property continues to meet evolving expectations for operational efficiency and responsible energy management.
3. Smart HVAC Energy Management Systems
One of the most direct ways in which hotel operators can optimize their energy consumption is through smart HVAC energy management systems. After all, climate control is an essential component of guest experience. Essentially, smart HVAC energy management systems ensure that any space is neither overcooled or overheated when no one is occupying it, reducing HVAC runtime by up to 45%. The energy cost savings from Verdant is so significant, in fact, that they have the lowest payback (or breakeven) period of energy management upgrades, with some hotel operators having recouped their investment in as little as 12 months.
4. Occupancy Sensors
Occupancy sensors allow hotel managers to respond to real-time fluctuations around actual occupancy patterns. Verdant’s occupancy sensors integrate seamlessly with our smart thermostats, but can also be used with many third-party lighting systems, reducing energy consumption on multiple fronts. Essentially, these occupancy sensors collect a wide range of data (i.e. peak demand loads, historical thermodynamics, local weather conditions, etc.) This data is then analyzed before being used to continuously optimize energy efficiency based on real-time changes in guest occupancy patterns in your hotel.
5. Smart Thermostats
Smart climate control in hotels goes well beyond smart HVAC energy management systems. Specifically, smart thermostats allow hotel managers to pre-program temperature settings around peak usage periods and real time fluctuations in occupancy. For instance, if a common area is typically unoccupied at a certain time, hotel operators can program these smart thermostats to reduce energy consumption during those hours. Similarly, Verdant’s smart thermostats can be programmed to align with high-traffic occupancy patterns, delivering the optimal temperature at all times. Of course, not all smart thermostats are created equally. Particularly, while consumer-grade smart thermostats are ideal for single family units, larger commercial properties such as hotels, require commercial-grade smart thermostats that can simultaneously manage multiple areas.
6. Air Source Heat Pumps
Another HVAC hardware upgrade hotel managers can invest in to maximize energy savings is Air Source Heat Pumps (ASHPs). Air source heat pumps notably reduce HVAC costs by transferring cold or warm air from outside to the interior, supplementing a hotel’s energy consumption from the grid. These ultimately reduce HVAC runtimes, and reduce overall energy consumption. ASHPs can also be employed as energy efficient space heaters (or coolers) to help manage energy consumption in areas of a hotel that are thermodynamically problematic. For example, common areas that are poorly insulated, or high-traffic areas.
7. Smart Energy-Efficient Lighting
When it comes to hotel management, ‘keeping the lights on’ isn’t just a metaphor. And similar to how smart HVAC systems leverage occupancy sensors to respond to real-time occupancy patterns, smart lighting allows hotel operators to reduce energy costs without compromising on guest experience. Moreover, smart lighting solutions provide guests with a seamless and more comfortable experience, ensuring optimal lighting in both private units and common areas. And many smart lights systems are not only easy (and cost-effective) to install, but can integrate effortlessly with the Verdant energy management system — allowing hotel managers to optimize their lighting energy consumption alongside their HVAC energy usage.
8. Energy-Efficient Appliances and Equipment
A significant source of energy costs in hotels stems from what’s called “vampire power draw”, also known as standby power. Essentially, standby power refers to the way “electric power is consumed by electronic appliances and equipment when they are switched off, but are still plugged in and on standby mode. Energy-efficient appliances, however, feature automatic shutdown pockets, which can reduce energy consumption. These sockets serve as smart power outlets that use either timers or infrared sensors to cut power to connected devices when the device itself is not in use, or the space is unoccupied.
9. Reduce + Prevent Water Waste
Water represents an essential resource to the overall operation of any hotel, from food and beverage service to guest room amenities, pools, laundry, and sanitation. According to the EPA, in fact, hotel water usage accounts for 15% of all US commercial and institutional water use. It is no surprise that hotel managers rely on smart technologies to conserve water, curbing heat and water pumping costs. McGraw-Hill construction estimates that with smart water energy management systems installed, water consumption can be reduced by 15%, energy use by 10%, and overall operating costs by 11%.
Smart water management systems also allow hotels to integrate water leak detection sensors, alerting staff to potential leaks before they cause costly damage or waste. Put simply, these systems help hotel operators reduce their carbon footprint, prevent water loss, and achieve significant operational cost savings while maintaining guest comfort.
10. Predictive Maintenance
An ounce of prevention is worth a pound of cure, especially in hotel energy management. Predictive Maintenance uses sensor data to identify HVAC issues before they escalate into costly system failures. It helps staff (1) anticipate maintenance needs, (2) prevent downtime, and (3) reduce operational costs. Regular HVAC tune-ups before heating and cooling seasons further optimize energy efficiency. Filters should be replaced frequently to maintain airflow and improve indoor air quality. Annual inspections by qualified technicians catch small problems early, enhancing system performance, lowering energy consumption, and keeping guests comfortable. Implementing both predictive and preventative HVAC maintenance ensures hotels maximize the ROI of their energy management systems while supporting long-term sustainability goals.
11. Renewable Energy Sources
Another way that hotel managers can reduce their energy costs is by drawing less energy from the grid in the first place by installing solar panels. Excess solar energy production can also be sold back to the mainstream grid, allowing hotel managers to further reduce energy costs. Typically, solar system installations can range between $10,200 and $15,200 after tax credits, and have a payback/breakeven period of approximately payback/breakeven period of approximately 6.4 to 9.5 years, depending on specifications of that solar energy system.
12. Set Goals, Track and Reward Improvements
Energy management systems provide hotel operators with a wide range of performance data (i.e. peak demand loads, occupancy patterns, etc.), and can help guide them in their energy optimization strategies, and help them set goals, track progress, and reach their ESG targets. Today, ESG is one of the fastest growing trends in hotel management. Put simply, ESG refers to adopting business practices that focus on environmental sustainability, social inclusion, and ethical governance. Whether that means installing a Smart HVAC system with smart thermostats or adopting renewable energy sources, achieving ESG targets doesn’t only reduce energy costs, but also bolsters hotel revenue by providing access to more strategic financing and tax credits.
13. Educate Hotel Staff and Guests
Of course, the very essence of hotel management is centered around the guest. Consequently, many hotels have started to offer a more sustainable guest experience by not only reducing the waste of their guests, but also educating modern travelers (particularly millennials) who are more environmentally conscious. Whether that means reducing towel and linen use to implementing eco room keys or going paperless, a little education can go a long way. After all, hotel guests will be responsible for the bulk of energy consumption in any given hotel.
How Verdant can make your hotel more energy efficient
Verdant solutions combine advanced smart technology—such as smart thermostats, occupancy sensors, and smart HVAC energy management systems—with machine learning to create a comprehensive approach to energy efficiency. By continuously monitoring occupancy patterns, climate control, and energy use, Verdant systems ensure that hotel operations are optimized without compromising guest comfort.
A key consideration for any energy management investment is the payback period. Verdant’s smart thermostats offer some of the fastest returns in the industry, with many hotels recouping their initial investment in as little as 12 to 18 months. Beyond rapid ROI, Verdant’s solutions provide ongoing operational benefits, including reduced energy waste, improved system performance, and simplified management across multiple areas of the property.
Hotel Energy Management: A Checklist for Success
Hotels, much like other commercial properties such as senior living communities and student housing, operate a wide range of services that directly influence energy consumption and costs. Reducing these costs requires a careful balance: energy management strategies must lower consumption while maintaining, and even enhancing, the guest experience.
By implementing best practices such as smart HVAC energy management systems, commercial-grade smart thermostats, predictive maintenance programs, occupancy sensors, and smart water management (including water leak detection), hotel managers can achieve meaningful energy savings. These tools not only reduce operating costs but also support sustainability goals, help meet ESG targets, and improve overall property efficiency.
When combined, these strategies create a holistic energy management program that empowers hotel operators to make data-driven decisions, optimize energy use in real time, and generate measurable cost savings. The result is a hotel that operates more efficiently, delivers a better guest experience, and achieves long-term financial and environmental benefits.
Ready to see Verdant in action? Take the first step toward smarter energy management and faster ROI. Contact us to discover how Verdant solutions can optimize energy use, reduce costs, and enhance guest comfort across your property.