The construction industry uses large quantities of natural resources and produces vast amounts of waste. It is no surprise that in this context sustainability in the industry has become a key consideration, which will impact upon hotel owners and managers undertaking construction works. A number of initiatives have been launched to improve sustainability in the industry, three of which are detailed below:

The introduction of Energy Performance Certificates (EPCs)

EPCs will be required for all buildings, including hotels, from October 2008 onwards whenever a building is constructed, rented or sold. This definition may include an extension to a building or a refurbishment if a building is converted into fewer or more units AND any of the fixed services for heating, hot water, air conditioning or mechanical ventilation are provided or extended. EPCs record how energy efficient a property is as a building and rate them from A to G (A being the most efficient). As well as possibly being a selling point for guests, the EPC rating of a building may well have an impact on the value of a property and its desirability for prospective tenants and purchasers. Hotel developers should therefore seek to ensure that they optimise their chances of achieving a high grade.

BREEAM and LEED

BREEAM is an environmental assessment for all buildings, including hotels. Buildings are assessed against set criteria, which include energy use, pollution, and use of water, materials and land.

BREEAM certification is undertaken by licensed assessors. Buildings are then rated between 'pass' to 'excellent', although an 'outstanding' rating will soon be introduced. Other changes to BREEAM will include setting minimum requirements for energy and water consumption and the use of 'green' materials.

The US equivalent of BREEAM is LEED (Leadership in Energy and Environmental Design), which provides a self-certification system for the design, construction and operation of high-performance green buildings. It is already fast becoming the international standard of measuring how sustainable a building is and can be used to certify buildings in the UK and worldwide. A LEED-certified building is one that has demonstrated a 'whole building approach' to sustainability in the following areas:

  • sustainable site development

  • water efficiency

  • energy performance and climate protection

  • materials selection

  • indoor environmental quality.

A BREEAM and/or a LEED certificate can bring environmental, economic and social benefits. In particular, it can increase the marketability of a building and improve the corporate image of developers and building owners behind the building. To illustrate, Starwood Hotels & Resorts Worldwide, Inc., recently announced that its new brand of ELEMENT hotels will require all hotels to be LEED-certified. Starwood are using the certificate to appeal to potential hotel guests.

Merton Rule

The Merton Rule is a planning policy pioneered by the London Borough of Merton that requires the use of renewable energy on-site to reduce carbon emissions in the built environment. The rule states that all new major developments above a certain size criteria generate 10% of their energy on-site from renewable sources once the building is occupied or in use (the size criteria for non-dwellings is floor space of 1,000 square metres or more or if the site is 1 hectare or more). Approximately 30 local authorities have followed Merton's example and some have even set their percentage higher than 10%. Over 100 further local authorities are assessing the rule's feasibility or are close to adopting their own similar policy. If a new hotel development is built under a local authority's jurisdiction and it fits the size criteria, the Merton Rule may need to be factored in.

Sustainability is a topic that is here to stay, so it is advisable for those undertaking new building works or refurbishing existing buildings (or their designers) to get to grips with it. Critics have stated that these measures and other government initiatives do not go far enough; for example, buildings could produce none or very little carbon but they can still be uneconomical in other areas. Many businesses in the construction industry are already factoring in sustainability in terms of their approach to work and, in the future, building owners and operators may well have little choice in making the environment a central issue. Hotel operators and managers, as developers of new hotels or renovators of existing buildings, will need to make themselves aware of this.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.