A resort ‘has achieved energy savings … without impacting guest experience’.
What an unfair and misleading statement!
So the resort saved $20K on energy per year, which is peanuts compared to what they have actually gained.
Value to guests
Of cause all these changes have impacted guest experience:
- Thermostats increased comfort in the rooms
- LEDs ensured that guests have lighting all the time
- LEDs produce stable light with no flickering
Value to owners
Higher guest comfort increased occupancy and allowed for a higher room rates too. Long serving LEDs decreased maintenance cost.
Between energy cost reduction, maintenance reduction and revenue increase this resort has added at least $50K per year to the net operating income.
A $50K increase of net operating income bumped up valuation of this property by $1mln at 5% cap rate. This is $1mln in cash available to owners via refinancing.
It is available now. Plus all other savings and benefits for the years to come.