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Hospitality groups: energy procurement across 200+ rooms

Commercial

A 240-room hotel runs 1,800,000 kWh per year. Locking 24 months at PJM low cleared $84,000 on the OPEX line. The full procurement playbook.

Harry Parker

Energy Consultant, Seenra Inc

Commercial10 min readPublished

Featured infographic

Per-room hotel kWh benchmarks

Limited-service hotel: 6,000 kWh/room/yr. Full-service: 8,500 kWh/room/yr. Resort: 12,000+ kWh/room/yr.

Open graph image · /og/commercial-bill.png

A typical 240-room hotel consumes roughly 1.8 million kWh per year. Locking a 24-month supplier rate vs utility default saves $60,000 to $100,000 annually. Multi-property hotel groups can bundle 5 to 15 properties into a single RFP for an additional 4 to 8 percent rate concession. Brand-mandated supplier requirements (some flags pre-select suppliers) can constrain the choice but rarely prevent meaningful savings.

Per-room kWh benchmarks

A limited-service hotel (Hampton Inn, Holiday Inn Express) uses roughly 6,000 kWh per room per year. A full-service hotel (Marriott, Hilton) uses 8,500 kWh. A resort uses 12,000+.

240 rooms times 7,500 kWh per room (mixed full-service) equals 1.8 million kWh per year. At a typical 11 cents per kWh supply rate, that is $198,000 in supply costs alone.

Lock savings on a 24-month contract

A clean supplier lock at 9.5 cents per kWh vs utility default 11 cents saves 13.6 percent on supply, or $27,000 a year. With 24-month term, total savings $54,000 over the contract.

Multi-property bundles (5 to 15 hotels under one operator) achieve 4 to 8 percent additional rate concession. A 10-property chain saves $80,000 to $120,000 a year vs single-site shopping.

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Common questions

Quick answers from the editorial desk

What is the per-room kWh average?
6,000 to 12,000 kWh per room per year depending on service level. Limited-service hotels are lowest; resorts with extensive amenities are highest.
Should I sub-meter rooms?
Some operators sub-meter to track guest energy usage and bill back overage. Most US hotels do not sub-meter; it is included in room rate. Sub-metering adds capex and operational overhead.
Can brand requirements limit supplier choice?
Sometimes. Some hotel flags pre-select energy suppliers as part of brand standards. The pre-selected suppliers are typically competitive but not always optimal.
What about off-season energy usage?
Resort properties with seasonal occupancy can lock for peak season only. Year-round properties lock the full contract term. Confirm season-fit before signing.

Further reading

Pillar guide, cluster siblings, and state pages cited above

Sources

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