Hyatt Place and Hyatt House, Tempe, AZSustainability
Apple Hospitality REIT is committed to enhancing and incorporating sustainability opportunities into our investment and asset management strategies, with a focus on minimizing our environmental impact. We seek to invest in proven sustainability practices when renovating our hotels and in portfolio-wide capital projects that can enhance asset value while also improving environmental performance. We target specific environmental efficiency enhancements, including equipment upgrades and replacements, that reduce energy and water consumption and improve waste management. As part of our acquisition due diligence, we perform sustainability assessments to identify areas of opportunity that will improve the property's environmental performance. Additionally, when working with developers to construct new hotels, we strive to implement environmentally efficient construction and building functionality. Our current environmental impact and certain strategies, programs and accomplishments are highlighted below.
Key Metrics for 2022
380,000
Energy Consumption Megawatt Hours
20.18
Total Kilowatt Hours Per Square Foot
100%
Of Portfolio Enrolled in U.S. EPA's
ENERGY STAR® Program
$5.90
Utility Cost Per Occupied Room
923,000
Water Withdrawal Kilogallons
14%
Diversion Rate
Environmental Stewardship
The environment has always been a key consideration in the operations of our hotels. We actively monitor key performance indicators of energy, water and waste at each property, utilizing historical, market and industry data to identify properties where improvements can be made and work with our management companies to address the opportunities. We also continually review systems and processes for broader scale implementation. Examples of projects that have helped us reduce electric and water usage over the past four years include the installation of LED lighting, Energy Management Systems, Efficient HVAC Equipment, Irrigation Systems and High Efficiency Plumbing. In addition to our efforts improving environmental efficiencies, the rooms-focused hotels we invest in are more operationally and environmentally efficient than full-service hotels, with the Company’s kWh per square foot at 19.37 in 2021, compared to an average of approximately 23.83 for full-service REITs in 2021 (based on publicly available information).
To enhance our commitment to sustainable operations, Apple Hospitality REIT established a formal energy management program in 2018, engaging resources throughout our Company to ensure that energy, water and waste management are a priority not only within the Company, but also with our management companies and brands. Many of the hotel brands have energy, water and waste management programs that we utilize to improve our environmental performance, and we work closely with the brands to identify priorities for future investment that will further advance sustainable operating standards.
Currently, Apple Hospitality participates in the following brand sustainability programs:
- 101 Marriott Hotels LEARN MORE
- 118 Hilton Hotels LEARN MORE
- 5 Hyatt Hotels LEARN MORE
Apple Hospitality’s investment in sustainable operations is highlighted by its 2022 total utility cost of $5.90 per occupied room as compared to 2022 total utility costs of $5.90 and $11.62 per occupied room for limited-service and full-service hotels, respectively, published by STR in 2023.
ROOMS-FOCUSED HOTELS
One of the many reasons Apple Hospitality invests primarily in the rooms-focused sector of the lodging industry is the environmental efficiency of rooms-focused buildings. With less open or unused space and less equipment needed for operations, the buildings use less electricity, water and natural gas on a per-square-foot basis as compared to full-service or resort hotels. With 19.37 total kWh per square foot in 2021 as compared to an average of 23.83 total kWh per square foot reported by full-service REITS for 2021, the rooms-focused hotels we invest in are generally more operationally and environmentally efficient than full-service hotels. Additional, Apple Hospitality's 2022 average total utility cost of $5.90 per occupied room highlights both the Company's efforts to operate its hotels effectively and the inherent efficiency of the buildings.
ENERGY & WATER CONSERVATION GUIDELINES
In 2018, Apple Hospitality implemented energy and water conservation guidelines for all of our hotels. Developed jointly with our energy partners, these best practices provide our hotels and management companies with operating guidelines to consistently and responsibly use energy and water across the entire portfolio. The guidelines, documented in both English and Spanish, cover daily processes in all facets of hotel operations, as well as considerations for the procurement of more energy and water efficient equipment and systems.
LED LIGHTING
Since 2017, the Company has actively initiated LED installation projects within its hotels and their parking lot lighting fixtures. The LED bulbs require approximately 75% less energy on average when compared to the previously existing fixtures. The increased lifespan of these bulbs also means there will be less disposal, reducing the contamination to the environment and landfills.
ENERGY MANAGEMENT SYSTEMS & HVAC EQUIPMENT
In locations with significant seasonal temperature patterns, the Company has worked to install guest room energy management systems, which allow more efficient control of heating, ventilation and air conditioning (HVAC) equipment, throughout each hotel.
IRRIGATION SYSTEMS & PLUMBING
Over the past several years, the Company installed smart irrigation watering systems at hotels with high water usage for landscaping. A smart irrigation controller has built-in water saving features including a sensor to adjust to the optimal sprinkler run time based on the local weather conditions. Smart controllers help to provide a healthy, beautiful landscape while reducing water usage. Additionally, the Company identified hotels with above average water usage and worked to improve the plumbing within these hotels.
New Construction
As part of our overall strategy, the Company works with high-quality developers to build new hotels that are acquired by the Company at the hotel’s opening. Throughout the construction process, we work with the developers to identify and implement sustainable practices in the construction of each hotel and develop sustainable operating functionality. A few of the best practices utilized by our developers include:
- LED lighting throughout the hotel
- Guest room energy management systems
- Recycled content
- Energy Star appliances
- Low-emissivity glass for windows
- Low VOC paint
- Greenguard Gold gypsum board
- Ultra-high-efficiency water heaters
- High-efficiency toilets and plumbing fixtures
