Resort owners gained $1mln out of simple energy projects

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Resort owners gained $1mln out of simple energy projects

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.

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By | 2020-06-03T10:33:19-04:00 December 6th, 2017|Categories: business case, Interesting Reads|Tags: , |0 Comments

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