Making Your Hotel More Profitable NOW – Strategy #11: Address and Minimize Energy Expenses

Hotels and restaurants use substantial amounts of energy in day-to-day operations. From heating and/or cooling public space and accommodations, to kitchen and laundry equipment that can run for more than 15 hours per day, the meter is always running and affecting your profits.

Optimizing your hospitality business for energy efficiency is not a small task. Depending on the age of your property, investment costs for renovations can be significant, but so can the long term benefits be substantial.

Here are some tips to making your hotel, restaurant or hospitality business more energy efficient:

  1. Go to these or other sites for potential government sponsored rebates or subsidies when considering energy efficient equipment:
  • 2.  Update old equipment. In literally all F&B equipment, the newer the equipment the more efficiently it will operate. Energy Star, a government-run agency promoting energy efficiency, has started rating restaurant equipment based on efficiency standards. Look for the Energy Star label when purchasing new equipment and use the Energy Guide to compare energy usage.
  • 3.  Better manage guest areas heating and cooling. Keeping your customers comfortable should always be your first priority, but there are strategies you can employ to accomplish this efficiently.  Examples include ceiling fans to circulate heat from the kitchen and from solar sources through the dining area. Fans push heat radiating off shared walls and ducts into the dining area. Ceiling fans can also be used to cycle cool air in summer or in warmer climates.
  • 4. Digital thermostats automatically cut heat or air conditioning during non-business hours, potentially cutting energy costs by as much as a third.
  • 5.  Use windows and doors for energy gain, not energy drain. If you are remodeling or building new, look for Energy Star rated windows and doors that either reduce solar heat gain in warm climates or maximize heat gain in cold climates. Make sure all windows and doors are well insulated, and use blinds or curtains (or both) to deflect hot sun or freezing cold situations. Use door closers to minimize loss when doors are opened
  • 6.  Oversee back of the house energy usage. While cutting energy use in the front of the house is beneficial, the real energy drain in many hotels and restaurants is in the back of the house, which means it is also the place to maximize energy savings. Install light switch timers on housekeeping and all storage closets.
  • 7. Train kitchen staff to reduce idle temperatures on ranges, broilers, and ovens. Even though this equipment takes a while to reach peak cooking temperature, reducing the heat during idle times can result in significant energy savings.
  • 8.  Create and use maintenance schedules. Create and post shut down procedures for all the equipment in your back of the house areas, such as the laundry and kitchen. Set a formal PM program that checks parts like thermostats, temperature dials, refrigerator or freezer door gaskets and ventilation ducts. Check regularly and replace on a scheduled basis.
  • 9.  Improve water heater efficiency. Insulate pipes, set the temperature to the proper safe level and program or install a recirculation pump timer. Repair hot water leaks quickly and train staff to only run full loads through the dishwasher and washing machines.
  • 10   Schedule off peak laundry hours. There is little reason to oppressor your in-house laundry during the peak day hours. Running the laundry in the evening or even in the 3rd shift can save energy and help assure that all linens are completed on schedule and available for the change of rooms.

Additional ideas are included from online research aand additional resources devoted to each of the Baker’s Dozen of Strategies to Make Your Hotel More Profitable on HospitalityEducators.com

Dr. John Hogan CHE CHA CMHS
Hotelier, Speaker, Educator, Columnist

* Co-Founder of www.HospitalityEducators.com
A membership information site committed to MAKING YOUR HOTEL MORE PROFITABLE!                                                                                                                       Introductory pricing will close in two weeks, so sign up now

* Principal, www.HoganHospitality.com
Your Hospitality Resource for the Hotel Owner, Innkeeper, Manager and Hospitality Industry Associations.

2011  Keys to Success are results-driven programs  aimed at building competitive advantage. These programs are available as either a keynote address or an interactive workshop. Details are available can be found at both sites.

Program # 6

10 Hotel Sales Action Steps to Succeed – Any time, Anywhere

I encourage you to read the previous blog post relating to a worthwhile proposal for qualified sites:     Industry Links – A Valuable Resource

 

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Make your hotel more profitable : Strategy #12 – Diversify Your Revenue Stream

The hospitality industry has many components, including lodging, food
service, beverage service, meetings, tourism, entertainment, attractions and
more.

Running a successful, profitable hotel and/or restaurant has parallels with
the stock market : one must diversify to maximize profitability and to
minimize risk.    The risks are even more apparent today considering the current economic climate, which requires thinking about the future as well as the present.

 

Today, you may have a solid brand (local or national), a good location, a base of regular guests and are holding your own in your competitive set comparative numbers. On the other hand, you have been having some staff turnover, your profit margins are not always consistent and there always seems to be a new competitor entering the market.

 

Your business could become stronger, more balanced and able to strengthen market penetration if you carefully examined some options and expanded your offerings with some diversity of service and products.    These could include:

  1. Adding retail space and/or items.  Conrad Hilton set the pace two generations ago and the industry is again about to expand this approach in deeper ways
  2. Making your services more accessible. This is especially true in food services, with major and smaller players experimenting with delis, carry-out for select popular items, etc.
  3. Exploring the potential for appropriate size party catering services.  Hosting special events off-site, IF you can do it well and profitably.
  4. Finding your niche. It could be weddings, showers, corporate team building, etc
  5. If you have a hotel restaurant , assess the periods of volume and see if there are options, such as making your restaurant available for larger functions on slow periods. You could also find a niche in renting the
    entire place for private parties on known slow days or in high demand seasons, like corporate holiday parties.
  6. Assessing your current or potential meeting room space and determine if the need is met in the market. This could bring in group business not currently using your facilities.
  7. Creating profitable partnerships. There are likely several other local businesses that would like to reachyour customer base. Come up with creative ways to give such partners advertising access to yourcustomers…for a fee.

 

There are additional resources devoted to each of the Baker’s Dozen of Strategies to Make Your Hotel More Profitable on HospitalityEducators.com

Dr. John Hogan CHE CHA CMHS
Hotelier, Speaker, Educator, Columnist

* Co-Founder of www.HospitalityEducators.com
A membership information site committed to MAKING YOUR HOTEL MORE PROFITABLE!                                                                                                                       Introductory pricing will close in two weeks, so sign up now

* Principal, www.HoganHospitality.com
Your Hospitality Resource for the Hotel Owner, Innkeeper, Manager and Hospitality Industry Associations.

2011  Keys to Success are results-driven programs  aimed at building competitive advantage. These programs are available as either a keynote address or an interactive workshop. Details are available can be found at both sites.

 

Program # 6

10 Hotel Sales Action Steps to Succeed – Any time, Anywhere

I encourage you to read the previous blog post relating to a worthwhile proposal for qualified sites:     Industry Links – A Valuable Resource

Make Your Hotel More Profitable: Strategy#13 Focus on Cash Flow

“Profit is an illusion, cash flow is fact” ~ Unknown

A Baker’s Dozen of Strategies to Make Your Hotel More Profitable
A HospitalityEducators.com Resource 2010

Cash flow is the term that refers to the amount of cash being received and spent. It’s what you see on your bank statements.  Money comes in, money goes out.

Earnings and profit are not the same as cash flow. Cash flow is what happens now, while earnings and profit are what might happen in the future.

Earnings turn into cash flow as soon as someone pays you.

Investors are often advised to focus on Cash Flow, instead of  accounting net income. This can be critical in hospitality businesses, as volumes and margins can swing to extremes within a single month.

The broadest definition is that Cash Flow is the total increase in cash over a year or quarter.

The Statement of Cash Flows provides this and breaks it out into three components

  • I. Cash Flow from or used in operations
  • II. Cash Flow from or used in financing (borrowing and re-payments) and
  • III. Cash Flow from or used in investing activities (capital spending). This broad definition of  Cash Flow is of great use in understanding exactly how the company generated and used cash but it is not a useful performance measure since borrowed cash is certainly no substitute for net income.

There will be additional resources devoted to each of the Baker’s Dozen of Strategies to Make Your Hotel More Profitable in future postings on HospitalityEducators.com

Dr. John Hogan CHE CHA CMHS
Hotelier, Speaker, Educator, Columnist

* Co-Founder of www.HospitalityEducators.com
A membership information site committed to MAKING YOUR HOTEL MORE PROFITABLE!

* Principal, www.HoganHospitality.com
Your Hospitality Resource for the Hotel Owner, Innkeeper, Manager and Hospitality Industry Associations.

2011  Keys to Success are results-driven programs                             aimed at building competitive advantage.

Program # 5

We Can Do That! –  Making The Customer Service Attitude Real

These programs are available as either a keynote address or an interactive workshop. Details are available can be found at both sites.

I encourage you to read the previous blog post relating to a worthwhile proposal for qualified sites:     Industry Links – A Valuable Resource

Industry Links – A Valuable Resource

Industry Links

Understanding how to use meaningful link exchanges and referrals is an essential part of effective use of social media and search engine optimization.

Because the hospitality community has so much to offer, we have an ideal spot to include a link to your website.   We work with a number of hospitality industry services and we are selectively expanding our cross-links with other groups who share complementary goals and services.

www.HospitalityEducators.com is a membership site serving independent hotels and restaurants, boutique hotels, small hospitality brands and associations, management companies, country inns, bed & breakfasts, hospitality students and aspiring professionals. HospitalityEducators.com is a consortium of successful corporate and academic professionals, who are committed to delivering focused and affordable counsel in solving specific challenges facing the hospitality industry.

Our services are designed to help individual hoteliers and groups of hotels improve their market penetration, deliver service excellence and increase their profitability.
Our full mission statement is @ http://hospitalityeducators.com/categories/about-us and Our URL is: http://www.hospitalityeducators.com )

Hogan Hospitality is a resource for hospitality owners and operators, with a focus on strengthening market position, increasing revenues, maximizing brands, improving operations in customer service, reservations, security, front desk, maintenance, housekeeping and training. Services include workshops and one-to-one consulting from a certified professional with over 35 years in hospitality operations, sales & marketing, training, management development and asset management on both a single and multi-property basis. This is my professional site and that URL is: http://www.HoganHospitality.com )

Please let me know if the above provides you with the information you need to review and consider our new expanded section for linking. I can be reached via email at John.Hogan@HospitalityEducators.com, or, if you’d like to talk about this by phone, my direct number is (602) 799-5375.

Best wishes,

John Hogan, CHA CHE MHS PhD, Co-Founder HospitalityEducators.com,
Principal. HoganHospitality.com

We would also appreciate it if you would place a hot link to HospitalityEducators.com on your website (Our URL is: http://www.hospitalityeducators.com )

Please go to the “Contact Us” page on our site, click on LINK EXCHANGE in the subject box, complete the basic information and submit. You will be contacted directly.

THIS PORTION OF OUR SITE IS BEING UPDATED AND SHOULD BE COMPLETE WITHIN THE NEXT TWO WEEKS

Our industry category links include:
• Education
• Employment
• Finance
• Franchise Associations
• Government
• Hospitality Associations
• Hospitality Law
• Insurance
• Professional Services
• Publications
• Training

Dr. John Hogan CHE CHA CMHS
Hotelier, Speaker, Educator, Columnist
* Co-Founder of www.HospitalityEducators.com
A membership information site committed to MAKING YOUR HOTEL MORE PROFITABLE!
* Principal, www.HoganHospitality.com
Your Hospitality Resource for the Hotel Owner, Innkeeper, Manager and Hospitality Industry Associations.
2011 Keys to Success are results-driven programs aimed at building competitive advantage.

These programs are available as either a keynote address or an interactive workshop. Details are available can be found at both sites.
Program # 4

THE Service Code – Making a Difference with the most memorable commitment ever