Energy management systems control and reduce energy demand in empty room inventories.  Modern  structures, including office buildings, hotels, motels and hospitals rely on energy management systems to reduce their use of energy and manage their enterprises for maximum cash flow and profitability.  In hospitality settings, hotel energy management savings can run as high as 45%.  Here are examples of the potential savings:

As energy prices continue to rise to reflect the increases in the price of  carbon based fuels, managing energy resources becomes more critical in reducing cash burn and  increasing profitability in a range of businesses.  The hospitality  industry is the prime example.

Reducing energy waste brings immediate and measurable, reduced cash burn and increases in profitability.

Hotel Energy Management with Simplicty

Hotels and motels sell an inventory of occupiable space.  When rooms are empty, the inventory is a loss, but the expenditure of energy resources can be minimized by aggressive and active management by staff.  To date this has consisted of staff setting back the HVAC and turning off unnecessary lights as they service the rooms.

Unfortunately, the application of labor to perform this function of hotel energy management overrides some of the potential savings in this most rudimentary form of hotel energy management system and is fraught with the potential for savings to be lost by oversights in the course of a busy day. When rooms are occupied, hotel energy management becomes more complex.  Clients, rushed by appointments in unfamiliar surroundings, often leave the room with all energy consumers fully engaged.  Studies show that most guests are out of their room an average of about 14 hours a day. The resultant loss incurred in the waste of  energy can be substantial.

Hotels also benefit by the active engagement of the guest in assisting in managing energy waste.  Surveys indicate that guests decry the waste of energy that occurs when they are away.  Allowing them to assist in managing the conservation of energy, makes them appreciate the establishment’s efforts to act as good stewards of the environment.  Above all, hoteliers require simplicity in any energy management systems they consider.  They do not have the resources to manage complicated hotel energy management systems.  Activated by key card, the system can achieve energy savings of up to 45%.

If you are interested in seeing how positively reducing energy waste can impact your cash flow and profits,  contact AGM Marketing Group, Inc.

The Energy Policy Act of 2005 provides a tax deduction of up to $1.80 per square foot as an immediate tax deduction for capital improvements that reduce energy consumption.  Building investments, including energy management systems,  that achieve specified energy cost reductions beyond ASHRAE 2001 building energy code standards are eligible. There are three subsection tax deductions that comprise the total allowable deduction.  They are:

1.  Energy management systems, Lighting & Lighting Controls -Allowing for a maximum of $.60 per square foot for lighting and lighting controls.
2.  HVAC Controls – Allowing for a maximum of $.60 per square foot for HVAC (heating ventilation and air conditioning) controls.

This amount equals a deduction of up to $ 1.20 per s.f. for upgrades such as energy management systems, even hotel energy management systems.

3.  The balance of the $ 1.80 per s.f. deduction is embodied in building envelope upgrades that improve the energy efficiency  of the envelope itself.

The incentives apply to buildings or systems placed in service or remodeled during calendar years 2006-2013.  The cost of installation of the energy management system may possibly be offset by a deduction of up to 60% based on the typical hotel room.  Hotel energy management will continue to pay off over the coming years beyond the payback.  By installing the hotel energy management system you may realize up to a total offset of the cost as a result of the allowable tax deduction.

Disclaimer: We are not tax advisors  and make no claim as to what your actual savings from tax incentives may be.  Consult a professional Tax Advisor to determine the actual impact on your property.