The Business Case for Voluntary Benchmarking

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The Business Case for Voluntary Benchmarking

• June 30, 2006
• E. J. Hilts
• Marriott Western Region

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Marriott International, Inc.

• Marriott International is a leading worldwide
  hospitality company with nearly 2,800 operating
  units in the United States and 68 other countries
  and territories
• The company is headquartered in Washington, D.C.,
  and has approximately 150,000 employees

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Marriotts Portfolio Is Diverse...
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Tiers in the Upscale Hotel Market
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Marriott Energy Management Program
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Business Strategy for Energy Energy Risk
Management

• Supply Side Management
• Integrated Resource Planning
• Environmental Planning
• Metrics and Performance
• Demand Side Energy Management

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Metrics and Performance

• Benchmarking
• Reporting Systems

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Energy Benchmarking Tracking

• Internal Metrics
• Electricity
• Natural Gas
• Water
• Energy Star
• Benchmarking

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Full Service Dashboard
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Property Report
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Energy Benchmarking

• How does it work?
• Building performance assessment
• Scale of 1-100
• Similar buildings nationwide (CBECS database)
• Assessment takes into account
• Weather
• Size
• Location
• Operating characteristics
• 75 or higher may qualify for an Energy Star
  plaque
• Why do it?
• Quick reality check for scoping
• Tracking tool for persistence

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Look for Obvious Indicators
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ENERGY STAR PROGRAM

• 100 of properties benchmarked
• 120 Properties have received labels

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Demand Side Energy Management

• Energy Champion Leadership
• Marriott Retro-Commissioning Program (MRCx)

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Energy Champion

• Renewed Emphasis
• Energy Conservation Committee
• Representatives from all departments
• Conduct monthly meetings
• Incentives for new actionable ideas

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Marriotts Retro-commissioning Program
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What is ???

• Comprehensive, systematic process of optimizing
  the existing hotel systems so they operate as
  efficiently and effectively as possible.
• (Building Tune-up)
• Focuses on energy-using equipment such as
  mechanical systems, controls and lighting.
  
• (No-cost / low-cost measures)

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Benefits

• Retro-commissioning will result in a 5-15
  improvement in building energy performance.
• California Public Utility Commission (CPUC 2004)

This represents between 4 to 11 million in
savings.
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Benefits of Energy Reduction
For Western Region Full Service Hotels A 10
Reduction in Energy Costs is Equivalent to
Increasing Flow-Through by. 5.93 /
year Increasing Occupied Rooms by 17,000 / year
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LAX Marriott Case Study

• Identified over 153,000 annually in no-cost
  low-cost saving measures.

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LAX MRCx Examples
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