M. Scott Parisi, CHAEcoGreenHotel-President Hospitality professional with over fifteen years experience with major hotel chains, such as Intercontinental, Starwood, Hilton and Choice Hotels. General Manager of the United States first L.E.E.D. certified and "Environmentally Friendly" Hotel; the Sheraton Rittenhouse.

EcoGreenHotel is a hospitality services company that is dedicated to supporting hospitality sustainability. We do this through training, education, energy and sustainability solution services, web-based marketing and online purchasing channels. www.EcoGreenHotel.com www.EcoGreenHotelStore.com

Will Customers Start Demanding a Green Hotel?

MA12 – CSR & Travel – Because It MattersPresented by the NBTA Corporate Social Responsibility Committee Presenter: Leilani Latimer, Director, Sustainability Initiatives, Sabre Holdings; Donna Headley, Global Operations Manager, Chevron As the private sector continues to embrace CSR as a priority, triple bottom line (“people, planet, profit”) reporting is becoming the new norm in how companies measure performance.  Learn the basics of CSR and why and how corporations are adding an environmental and social dimension to their corporate travel programs.

Will State and Local Governments Start Demanding a Green Hotel?

As of January 1, 2008, state agencies and departments under the direction of the Governor could not contract for meeting and conference space with hotels or conference facilities that had not received the Florida Department of Environmental Protection’s (DEP) Green Lodging  program designation for best practices in water, energy, and waste efficiency standards, except when certified to the Governor by the responsible agency head that no other viable alternative existed.

Virginia Green is the statewide program that works to reduce the

environmental impacts of Virginia's Tourism Industry. It is run as a partnership between

DEQ, the Virginia Tourism Corporation and the Virginia

Hospitality and Tourism Association.

• 72% of electricity consumption• 60% of total non-industrial waste•40% of primary energy use •39% of CO2 emissions •13.6% of potable water consumption

According to the US Green Building Council buildings in the US account for:

In the US alone, hotels represent more than 5 billion square feet of space, nearly 5 million guest rooms, and close to $4 billion in annual energy use. Business meetings in the US constitute a $175billion industry, and Americans make more than 400 million long-distance business trips a year.

In general a green hotel will:

• Minimize local environmental impact through the use of new technologies to use less energy, water and resources than traditionally operated counterparts.

• Provide direct financial benefits for the building owners and operators (lower operational costs)

•Build environmental and cultural awareness (educate consumers)•Provide positive experiences for both guests and hosts.•Have improved indoor air quality

What is the Standard Definition a ‘Green’ or ‘Sustainable’ Hotel?

The hotel will be operated under the sustainability principals of: People, Profit, Planet

• Use 26% Less Energy• Emit 33% Carbon Dioxide •Use 30% Less Indoor Water •Send 50%-75% Less Solid Waste to Landfills and Incinerators•Green Buildings can also encourage the use of alternative transportation (walking, mass transit, low-emission, fuel-efficient or alternative fuel vehicles)

According to the US Green Building Council a ‘Green’ or ‘Sustainable’ Hotel will:

The hotel will be operated under the sustainability principals of: People, Profit, Planet

What is the Standard Definition a ‘Green’ or ‘Sustainable’ Hotel?

Currently, there is NO universally accepted Green Hotel Standard

Third Party EcoLabel Certifications

According to a 2009 Responsible Purchasing Trends report, the three most recognizable eco-labels are:

Recognized Utilized ENERGYSTAR 100% 94%LEED 91% 70% GREENSEAL 90% 66%

1) EnergyStar Benchmark

2) EnergyStar Labeled Building

GS-33 • Bronze• Silver • Gold

Scored between 1-100. 50 is average. 75 or above is required to receive label.

Must meet minimum standards for waste reduction, energy efficiency, water use reductions, green cleaning, hazardous substances etc.

LEED NC, EB O&M, CI • Certified• Silver • Gold • Platinum

Most stringent of the three standards. Requires earning points for site selection, indoor air quality, waste reduction, energy efficiency, water use reductions, and purchasing

What Certification is right for my hotel? EcoRooms® & EcoSuites™: (www.ecorooms.com) Certified properties must meet eight strict eco-criteria for membership and certification. The criteria includes: use of Green Seal certified cleaning and paper products, towel and linen reuse program, recyclable waste program, energy efficient lighting, high efficiency plumbing, and 100% smoke-free properties.Rating: Must meet all eight program requirementsRecognized/Chosen by: American Hotel and Lodging Association (AH&LA) and the American Automobile Association (AAA).

EPA’s Energy Star label: (www.energystar.gov) The Environmental Protection Agency’s Energy Star program enables buildings to qualify through meeting strict energy performance standards. Energy Star labeled properties use less energy, have reduced operating expenses, and reduced greenhouse gas emissions. To be certified, the property must attain a minimum score of 75, the top 25%, based on EPA’s National Energy Performance Rating System. As of November 2010, there are 426 Energy Star labeled U.S. hotels. Rating: Must obtain a score of 75 or higher.

What Certification is right for my hotel? Green Globe Certification: (www.greenglobecertification.com) This is a certification label for sustainability in both management and operations. Certification criteria cover several areas, including sustainable management and social economic, cultural heritage, and environmental aspects of sustainability. The program’s criteria are also updated annually to ensure international compliance. Rating: Must achieve threshold of at least 35% of the total 1,000 points

Green Key®: (www.greenkeyglobal.com) The Eco-Rating program is specifically designed for hotel operations to rank, certify and inspect green initiatives. Based upon a comprehensive environmental self-assessment, hotels are ranked and provided with guidance on how to “unlock” opportunities. The program assesses the five main operational areas of a property and covers nine sustainable practices. An on-site inspection may be conducted to confirm green hotel rating. Rating: One to Five Green KeysRecognized/Chosen by: Carlson Hotels, Hyatt Hotels, Motel 6,MGM Resorts International, Sofitel, Fairmont Hotels & Resorts and Accor in the U.S/North America region.

What Certification is right for my hotel?

Green Seal certification: (www.greenseal.org) This tiered certification is presented to those lodging properties that achieve various levels of compliance with GS-33, Green Seal Environmental Leadership Standard for Lodging Properties. Properties must demonstrate science-based evaluation of sustainable practices in following areas: waste minimization, energy efficiency, conservation and management, management of fresh water resources, wastewater management, hazardous substances, and environmentally conscious purchasing.Rating: Bronze, Silver or Gold LevelsRecognized/Chosen by: The city of Los Angeles through its Green Business Initiative, as well as Chicago through its Green Hotels Initiative.

USGBC LEED® certification: (www.usbgc.org/leed) The Leadership in Energy and Environmental Design (LEED) Green Building Rating System™ is the nationally accepted benchmark for the design, construction, and operation of high performance green buildings. Promotes a whole-building approach to sustainability by recognizing performance in five key areas: sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality.Rating: Certified, Silver, Gold, or Platinum Level

What are Hotel Companies Doing to Create Green Programs?

• Starwood Hotels and Resorts-Brand-wide commitment for all Element Hotels to pursue the U.S. Green Building Council's (USGBC) LEED Certification

• Holiday Inn – Branded Program Green Engage

• Marriott – Has over 275 Energy Star Labeled Hotels and a LEED Certified prototype for new construction (15 in process)

• Hilton has launched LightStay

• Expedia and Travelocity – Announced Green Hotel Booking Engines

What are Hotel Companies Doing to Create Green Meetings?

• Starwood Hotels & Resorts has introduced green meeting guidelines at its North American properties and plans to roll out the practices globally next year.

• Fairmount Hotels-Eco-Meet program helps meeting planners by providing a meeting structure that encourages maximum waste diversion and environmental awareness for conference delegates.

• Kimpton Hotels-EarthCare program donates a portion of the proceeds to the Trust for Public Land.

• Rosen Green Meetings® are events which are conducted in specific ways which help reduce the environmental burdens imposed by such activities.

Partners in Energy Conscious Innovation brining you the greenest hotels on the planet

Case Study #1 – Swimming Pool Energy and Water Reduction

Install $350

Annual Cost $700

Energy Savings 10% to 30% reduction in swimming pool heating costs

HeatSaver: a bio degradable non toxic liquid that reduces evaporation in outdoor ‐ ‐swimming pools by approximately 30%

Automatic timer adds 4oz of product for every 1500 square feet of pool

Liquid rises to top and creates hydrophilic barrier invisible to guests

Hotel Valencia in San Jose, CA is saving $12 per day, up to $4380 annually

Case Study #2 – Swimming Pool Chemical Use Reduction Salt Water Conversion - 12 Hotel Portfolio

Kana Hotel Group converted 12 swimming pools from traditional Chlorine systems. The $18,000 investment in salt water conversion equipment had a simple payback of less than nine months. They were able to reduce chemical consumption from $150 of chlorine per month to $6 per month in salt. 12 hotels X $1,500 = $18,000 conversion and install cost

$150 monthly Chlorine x 12 months x 12 hotels = $21,600

$6 monthly Salt x 12 months x 12 hotels = $864

Annual Savings (Year 2 and beyond)- $20,736

Case Study #3 – Wireless Energy Management Guest Room Controls

There are a wide number of manufacturers and installers to provide wireless controls for guest rooms to efficiently manage building energy. The wireless controls interface with the hotel software to give management direct control of PTAC energy use.

Direct Controls allow hotel operators to reduce energy use in un-occupied guest rooms through software interface.

Typical energy savings for a 100 room hotel is approximately 30% of total energy used for guest rooms

Case Study #4 – Guest & Back of the House Recycling

Reducing commercially viable waste from your stream is the key to savings. Holiday Inn – San Antonio Airport

400 room full service hotel began recycling program 2007 as a pilot program.

Program started with an 8 yard recycling dumpster and 40 yard trash dumpster. 2008 began single stream for back of house and guest room. Now, they recycle 83 tons using a 40yd recycle bin and an 8yd trash bin.

The 40yard trash dumpster = $250 per haul to landfill vs. $75 per haul for recycling.

Savings for 2008 and 2009 = over $10,000 per year

Public Areas, Meeting Rooms and Back of House LightingElectric

Rate0.09 Per KWh

ECM Ref #

Location Qty Baseline Technology Upgrade TechnologyCost Per

ItemLabor Total Cost

Savings Logic

Projected Savings/Yr

Savings Per Room/Yr

Daily Savings

Per Room

Payback in Yrs

Fix A

1st Floor Lobby, entrance, Fire Place

Seating, and Breakfast Area, Kitchen 69

Recessed 6" Downlight Burning One (1) 65W Incandescent (24 Hour Burn)

Relamp with a LEDNovation LED-PAR30L-75-1WD-IF (12 W)

$60.00 $0.00 $4,140 Reduced

KW $3,090 $27.59 $0.076 1.34

Fix B Banquet Pre Function 23

Recessed 6" Downlight Burning One (1) 65W Incandescent (12 Hour Burn)

Relamp with a LEDNovation LED-PAR30L-75-1WD-IF (12 W)

$60.00 $0.00 $1,380 Reduced

KW $550 $4.91 $0.013 2.51

Fix C

Meeting Rooms Three Sections at 14 Fixtures

Each 42

Recessed 6" Downlight Burning One (1) 65W Incandescent (10 Hour Burn)

Relamp with a LEDNovation LED-PAR30L-75-1WD-IF (12 W)

$60.00 $0.00 $2,520 Reduced

KW $857 $7.65 $0.021 2.94

Fix DPendent Lights over

Breakfast Tables 14

Seven Pendent Fixtures buring two (2) 40 W Incandescents.

Relamp with A Type LEDNovation LED-A19-40-1D-I (3.4 W)

$46.00 $0.00 $644 Reduced

KW $446 $3.98 $0.011 1.44

Fix E Lobby 24

Lobby Chandelier burning 24 candelabra 25W incandescent bullbs

Relamp with a LEDtronics candelabra DEC02-B10E12F-XIW-120AW (2.4 W) $38.00 $0.00 $912

Reduced KW $501 $4.47 $0.012 1.82

Fix F Bar 5

Bar Pendents burining one (1) 25 W candelabra bulb

Relamp with A Type LEDNovation LED-A19-40-1D-I (3.4 W)

$46.00 $0.00 $230 Reduced

KW $72 $0.64 $0.002 3.20 EcoGreenHotel Proposed $9,826.00 $5,515.78 $49.25 $0.13 1.8Total of Possible Upgrades

Case Study #6 – On-Demand Boiler Management Systems

Reducing energy demand for domestic hot water through the use of on-demand controls. Patented technology developed and tested over the last 2 years for hotels, multi-family housing, schools and other large scale applications.

The savings from reduced water heating 30% or greater annually

Typical ROI for Boiler Energy Cost Management System is 18 months or less

Case Study #7 – Ozone Laundry

Ozone is the single most powerful oxidant available for commercial water treatment. O3 is an activated form of oxygen is 150% stronger and 3,000 times faster reacting in aqueous solution than chlorine. A highly effective biocide, fungicide, and deodorizer, ozone almost instantly disinfects water on contact.

Water heating cost reductions of 80% to 90%. Wash temperatures can be lowered from 140/180F to 90/105F

Chemical cost reductions of 20-25%

Case Study #7 – Ozone LaundryUtility Start End Usage* Cost Occ %

Average # of Occupied

Rooms

Usage** Attributed to Laundry

Usage* Per Occupied

Room

Savings Per Occupied

Room*

% Savings Per

Occupied Room

Utility*** Rate Avoided Cost

Gas 06/27/09 07/28/09 1,403 1,643.52$ 67.1% 51.7 543 10.5006/26/10 07/28/10 1,097 1,232.00$ 85.9% 66.1 424 6.41 -4.09 -38.9% 1.1230$ (303.59)$

07/29/09 08/27/09 1,042 1,225.36$ 58.7% 45.2 403 8.9107/29/10 08/27/10 924 1,047.12$ 71.9% 55.4 357 6.45 -2.46 -27.6% 1.1230$ (153.00)$

Water 06/27/09 07/28/09 298 840.04$ 67.1% 51.7 89 1.7306/26/10 07/28/10 238 806.59$ 85.9% 66.1 71 1.08 -0.65 -37.6% 3.3890$ (145.89)$

07/29/09 08/27/09 258 757.81$ 58.7% 45.2 77 1.7107/29/10 08/27/10 189 691.50$ 71.9% 55.4 57 1.02 -0.69 -40.2% 3.6587$ (139.42)$

Sewer 06/27/09 07/28/09 298 1,935.43$ 67.1% 51.7 89 1.7306/26/10 07/28/10 238 1,594.03$ 85.9% 66.1 71 1.08 -0.65 -37.6% 6.6976$ (288.32)$

07/29/09 08/27/09 258 1,707.83$ 58.7% 45.2 77 1.7107/29/10 08/27/10 189 1,315.22$ 71.9% 55.4 57 1.02 -0.69 -40.2% 6.9588$ (265.17)$

* Gas is Measured in Therms. Water & Sewer are Measured in CCF (100 Cubic Feet) Estimated Savings on Chemicals (2 Months) = (345.57)$

** 68.9% Gas is Used to Heat Domestic Hot Water, 11.11% for Dryers (excludes space heating). Total Avoided Cost During Study Period = (1,640.95)$ 40% of water is Kitchen & Laundry, adjusted to 30% for laundry only (minimal kitchen).Percentages based on data from a study of Hotels conducted for NationalGrid, 2004. Estimated Avoided Cost Per Month = (820.47)$

*** Gas is bil led using incremental rates; lower marginal rates for this analysis. Estimated Avoided Cost Per Year = (9,845.70)$

Ozone System & Installation Provided Courtesy of US Energy Solutions. Payback based on $16,500 Cost of System (Years) = 1.68$

Score 1- 100

82

65

75

EPA's Energy Performance Scale

Minimum Score to Qualify for EPA's Energy Star Current Buidling's ScoreProposed Combined Building's Score

Energy Usage Benchmarking

020406080

100120140160

Best in RegionAverage in Region

Efficiency Analysis and Technology

Recommendations

COST BY ECM SAVINGS BY ECM (Annual)

ENERGY CONSERVATION MEASURES TOTAL COST TOTAL COST

Boiler Management System 10,945$ Boiler Management System 6,427$ Commercial Refrigeration Efficiency 2,702$ Commercial Refrigeration Efficiency 2,145$ EMS Common -$ EMS Common -$ EMS Guest Rooms 84,898$ EMS Guest Rooms 44,946$ Kitchen Sink Pedal Valves 1,432$ Kitchen Sink Pedal Valves 421$ Lighting (Lobby, BOH, Pool) 3,726$ Lighting (Lobby, BOH, Pool) 5,252$ Noveda EnergyFlow Monitor 12,475$ Noveda EnergyFlow Monitor 3,249$ OCC Sensors (Guets Rm, BOH, and Public) 2,102$ OCC Sensors (Guest Rooms, BOH, and Public) 1,412$ Ozone Laundry Solution 24,090$ Ozone Laundry Solution 14,382$ Pool Solutions - Aqua Rite 3,485$ Pool Solutions - Aqua Rite 1,463$ Pool Solutions - Heatsavr 2,157$ Pool Solutions - Heatsavr 1,245$ Window Conservation 27,345$ Window Conservation 9,173$

TOTAL COST 175,357$ 90,115$

TOTAL COST PER ROOM 772$ TOTAL ENERGY SAVINGS % 51.39%

12 MONTH ENERGY SPEND (Including Water) 668,303$

% OF ANNUAL SAVINGS 13.48%PROPOSED ENERGY SPEND (Including Water) 578,188$

FIVE YEAR CASH FLOWYEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL

Project Financing @ 5% (42,768)$ (42,768)$ (42,768)$ (42,768)$ (42,768)$ (213,840)$ Energy Savings * 90,115$ 94,621$ 99,352$ 104,319$ 109,535$ 497,942$ Maintenance Savings 1,685$ 1,348$ 1,078$ 863$ 690$ 5,664$ EPACT 30% Tax Rate at @.80 per sq.ft. 38,871$ 38,871$ Progress Energy Rebate Program 14,231$ 14,231$ Progress Energy Demand Reduction 9,000$ 9,000$ Progress Energy Generator Response Program 3,200$ 3,200$ Professional Engineering and Tax Services (14,325)$ (14,325)$ Project Management Fees (14,029)$ (14,029)$ Annual Cash to Property 85,980$ 53,201$ 57,662$ 62,414$ 67,458$ 326,715$ Cumulative Cash Flow 85,980$ 139,181$ 196,843$ 259,257$ 326,715$ 326,715$

ENERGY CONSERVATION MEASURES

TOTAL ENERGY SAVINGS

Virginia Energy Efficiency Rebates and IncentivesCorporate DeductionEnergy-Efficient Commercial Buildings Tax DeductionCorporate DepreciationModified Accelerated Cost-Recovery System (MACRS) + Bonus Depreciation (2008-2012)

Leasing ProgramCommonwealth's Energy Leasing ProgramCommonwealth's Master Equipment Leasing Program

PACE FinancingLocal Option - Clean Energy Financing

Performance-Based IncentiveTVA - Generation Partners ProgramTVA - Mid-Sized Renewable Standard Offer Program

Property Tax IncentiveLocal Option - Property Tax Assessment for Energy Efficient BuildingsLocal Option - Property Tax Exemption for Solar

Utility Loan ProgramTVA Partner Utilities - energy right Heat Pump ProgramColumbia Gas of Virginia - Business Efficiency Rebate ProgramDominion Virginia Power - Commercial Energy Efficiency ProgramsTVA Partner Utilities - energy right Water Heater Program

http://www.ecogreenhotel.com/government_tax_incentives.php

Energy Efficiency Tax Advantages

Building Cost Audit – There are tax advantages that most investors find too confusing or simply too time consuming to take advantage of. By engaging a specialized accounting firm with engineering expertise you can qualify for significant tax deductions.

 EPACT05 Energy Tax Deduction (requires independent certification of the energy efficiency measures).

Cost Segregation – Properly determine depreciable life of building components, maximizing current deductions.

Abandonment – Certain long term assets may be written off due to renovation of the building, maximizing current deductions.

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