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Hotel Operations

10 Ways to run a successful sustainable hotel business

Discover the top 10 sustainable practices for hotels to reduce costs, enhance guest experience, and minimize environmental impact.

2/15/2025
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Hotel Operations

10 Ways to run a successful sustainable hotel business

Discover the top 10 sustainable practices for hotels to reduce costs, enhance guest experience, and minimize environmental impact.

2/15/2025

The hospitality industry has a significant role to play in combating climate change. Imagine a boutique seaside resort that once struggled with high energy costs and wasteful operations. After switching to solar panels, reducing water waste, and partnering with local organic farms, the hotel not only cut expenses but also became a top choice for eco-conscious travelers. Stories like these highlight the power of sustainability in reshaping hospitality businesses.

With real estate being one of the largest contributors to greenhouse gas emissions, hotels have a unique opportunity to adopt sustainable practices that reduce their environmental impact while enhancing guest experiences. As climate change laws and regulations become stricter worldwide, hotels that embrace sustainability are not just making an ethical choice but also ensuring long-term profitability.

Modern travelers are increasingly seeking eco-friendly accommodations, making sustainability a key differentiator. From reducing energy consumption with smart systems to offering locally sourced food, hotels that integrate green initiatives into their operations can appeal to this growing demographic while also cutting costs. In this blog, we explore the most effective strategies for running a sustainable hotel business.

What are sustainable practices in hotels?

Sustainable hotels, also known as eco-lodges or green hotels, integrate environmentally friendly practices into their operations. They emphasize energy efficiency, waste reduction, water conservation, and locally sourced materials to minimize their ecological footprint. Many sustainable hotels are located in natural environments, such as forests or coastal areas, making eco-tourism a fundamental aspect of their identity.

By adopting sustainability, hotels can align themselves with responsible tourism while appealing to travelers who prioritize ethical and eco-conscious accommodations.

Benefits of running a sustainable hotel

  • Cost Savings – Energy-efficient appliances, solar panels, and water-saving fixtures help hotels lower utility bills.
  • Enhanced Guest Experience – Guests appreciate eco-friendly initiatives, such as organic toiletries and sustainable dining options. For example, hotels that use refillable shampoo and soap dispensers instead of single-use plastics not only reduce waste but also create a modern, high-end feel for guests.
  • Brand Reputation & Loyalty – Sustainability initiatives boost a hotel's reputation, making it more attractive to eco-conscious travelers. For example, partnering with sustainable brands for amenities and offering eco-friendly experiences, such as farm-to-table dining, can create a loyal customer base that values ethical travel choices.
  • Regulatory Compliance – Many governments offer incentives and tax breaks to businesses that meet sustainability criteria.
  • Community Support – Sustainable hotels contribute to the local economy by sourcing food and materials from nearby businesses, fostering positive relationships with local communities.

10 ways how you can run a sustainable hotel

1. Implement an energy management system (EMS) 

Consider the case of the Svart hotel in Norway, which has set a new standard by aiming to operate on 100% renewable energy, reducing its energy consumption by approximately 85% compared to traditional hotels. The hotel incorporates an advanced Energy Management System (EMS) to track and optimize energy usage, ensuring minimal waste while maintaining guest comfort. 

By adopting an EMS, hotels can monitor energy consumption in real time, automate HVAC and lighting controls, and identify inefficiencies, leading to significant cost savings and a reduced carbon footprint. Hotels can also integrate smart grids and AI-powered analytics to enhance energy conservation further.

2. Adopt renewable energy sources

The Sokos Hotel Pier 4 in Helsinki exemplifies the shift towards renewable energy by utilizing carbon-storing timber construction and sustainable energy solutions. The hotel's design significantly reduces embodied carbon emissions while integrating renewable energy sources such as solar panels and geothermal heating. Hotels can follow suit by installing solar panels, wind turbines, and heat recovery systems to decrease reliance on non-renewable energy sources. Implementing these renewable energy solutions not only lowers greenhouse gas emissions but also appeals to eco-conscious travelers who prioritize sustainability in their accommodation choices.

3. Reduce water consumption

In regions like California, USA, where water scarcity is a pressing issue, hotels have implemented water-saving measures such as low-flow fixtures and greywater recycling systems. These initiatives not only conserve water but also resonate with guests who value environmental responsibility.

4. Use eco-friendly products

The Populus Hotel in Denver exemplifies how hotels can integrate eco-friendly practices into their operations without relying on carbon credits. The hotel sources organic toiletries, biodegradable cleaning products, and sustainably produced linens, ensuring a non-toxic environment for guests and staff. Additionally, it prioritizes locally sourced and ethically manufactured materials, reducing supply chain emissions. These efforts not only improve indoor air quality but also contribute to long-term sustainability by eliminating harmful chemicals and reducing overall environmental impact. Hotels looking to follow this model can switch to refillable dispensers, non-toxic furniture coatings, and plant-based amenities, reinforcing their commitment to sustainability.

5. Support local businesses

El Nido Resorts in the Philippines is a prime example of how hotels can support local economies while maintaining sustainable operations. The resort collaborates with local artisans, farmers, and fishers, ensuring that the majority of its food ingredients and materials are sourced locally. This practice not only boosts the local economy but also reduces the environmental impact associated with long-distance transportation. By investing in community-driven initiatives, El Nido Resorts promotes responsible tourism while providing guests with an authentic cultural experience. Hotels can adopt similar practices by forming partnerships with local businesses, sourcing seasonal produce, and showcasing traditional crafts and cuisine, fostering both economic growth and cultural preservation.

6. Reduce food waste

Food waste is a significant challenge in the hospitality sector. Implementing portion control, composting organic waste, and donating surplus food to local charities can drastically cut waste levels. Leveraging AI-powered inventory systems can also help optimize procurement, ensuring minimal food wastage while maintaining high-quality service.

7. Encourage sustainable practices in hospitality industry

Hotels can contribute to the wider community's efforts to protect the environment by educating guests about sustainable practices and encouraging them to adopt them during their stay. This can include promoting the use of reusable water bottles and avoiding single-use plastics.

8. Create a sustainable landscape

Incorporating native and drought-resistant plants into hotel landscaping can reduce water and maintenance needs. Sustainable gardening practices, such as composting organic waste and using natural fertilizers, further support an eco-friendly environment. Green roofs and vertical gardens can also contribute to better insulation and energy savings.

9. Promote sustainable transportation

Encouraging guests to use sustainable transportation options reduces carbon emissions. Hotels can offer bike rentals, electric vehicle (EV) charging stations, and partnerships with eco-friendly car rental services. Providing shuttle services to public transit hubs can further minimize environmental impact while enhancing guest convenience.

10. Incorporate sustainable building practices

Using eco-friendly construction materials, such as recycled wood, bamboo flooring, and energy-efficient insulation, can lower a hotel’s environmental footprint. Sustainable architecture, including passive cooling and natural lighting designs, helps reduce reliance on artificial heating and cooling systems, leading to long-term cost savings.

Myths and misconceptions about sustainable hotels

Transitioning to a sustainable hotel operation is not just a passing trend; it is an essential step toward mitigating the impact of climate change and environmental degradation. The hospitality industry plays a critical role in driving sustainability efforts, but despite increasing awareness, misconceptions still persist. Many hotels hesitate to adopt eco-friendly practices due to myths about high costs, compromised luxury, or limited guest appeal. However, the reality is quite different, as sustainable hotels can be both profitable and desirable. Below, we address some of the most common myths and misconceptions surrounding sustainability in the hospitality sector:

Myth 1: Making a hotel eco-friendly is expensive

One of the biggest misconceptions about making a hotel eco-friendly is that it is expensive. While some initiatives may require initial investment, the long-term benefits far outweigh the costs. Energy-efficient appliances, a linen and towel reuse program, and waste reduction efforts lead to substantial savings while benefiting the environment.

Myth 2: Going green means sacrificing comfort and luxury 

Another common myth is that eco-friendly hotels are less comfortable and luxurious than traditional hotels. However, sustainable hotels can offer the same level of comfort and luxury while incorporating eco-conscious practices, such as organic bedding, sustainably sourced food, and energy-efficient lighting, without compromising guest experience.

Myth 3: Eco-friendly hotels attract only environmentally conscious guests 

While sustainable hotels are increasingly popular among eco-conscious travelers, they appeal to a broader audience, including those interested in wellness, unique experiences, and high-quality services. Guests value sustainability, but they also appreciate exceptional hospitality and modern amenities that come with it.

How Guestara supports sustainable hotel operations

Guestara, an AI-powered Guest Management Platform, plays a crucial role in helping hotels enhance sustainability without compromising efficiency. Here’s how:

  • Contactless Check-In: Utilizing advanced hotel check-in software, this feature eliminates paper-based registration, reducing waste and streamlining the guest experience while enhancing operational efficiency.
  • Digital Upselling: Utilizing advanced hotel upselling software, this feature promotes hotel services through digital channels, reducing the need for printed materials while maximizing revenue opportunities and enhancing guest experience.
  • Operational Efficiency: Automates guest communication, guest engagement, and housekeeping requests, optimizing resource usage and minimizing unnecessary consumption.

By integrating Guestara into hotel operations, businesses can significantly reduce environmental impact while enhancing guest satisfaction and boosting revenue.

Take action towards sustainability

Sustainable hospitality is not just an industry trend—it’s the future. By implementing these practices, hotels can lower operational costs, attract eco-conscious travelers, and contribute to a greener planet. Start by assessing current operations, setting sustainability goals, and leveraging technology like Guestara to accelerate your journey toward a more sustainable and profitable hotel business.

Kajal Makhija
Chief Marketing Officer @ Guestara
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Hotel Operations

10 Ways to run a successful sustainable hotel business

Discover the top 10 sustainable practices for hotels to reduce costs, enhance guest experience, and minimize environmental impact.

2/15/2025

The hospitality industry has a significant role to play in combating climate change. Imagine a boutique seaside resort that once struggled with high energy costs and wasteful operations. After switching to solar panels, reducing water waste, and partnering with local organic farms, the hotel not only cut expenses but also became a top choice for eco-conscious travelers. Stories like these highlight the power of sustainability in reshaping hospitality businesses.

With real estate being one of the largest contributors to greenhouse gas emissions, hotels have a unique opportunity to adopt sustainable practices that reduce their environmental impact while enhancing guest experiences. As climate change laws and regulations become stricter worldwide, hotels that embrace sustainability are not just making an ethical choice but also ensuring long-term profitability.

Modern travelers are increasingly seeking eco-friendly accommodations, making sustainability a key differentiator. From reducing energy consumption with smart systems to offering locally sourced food, hotels that integrate green initiatives into their operations can appeal to this growing demographic while also cutting costs. In this blog, we explore the most effective strategies for running a sustainable hotel business.

What are sustainable practices in hotels?

Sustainable hotels, also known as eco-lodges or green hotels, integrate environmentally friendly practices into their operations. They emphasize energy efficiency, waste reduction, water conservation, and locally sourced materials to minimize their ecological footprint. Many sustainable hotels are located in natural environments, such as forests or coastal areas, making eco-tourism a fundamental aspect of their identity.

By adopting sustainability, hotels can align themselves with responsible tourism while appealing to travelers who prioritize ethical and eco-conscious accommodations.

Benefits of running a sustainable hotel

  • Cost Savings – Energy-efficient appliances, solar panels, and water-saving fixtures help hotels lower utility bills.
  • Enhanced Guest Experience – Guests appreciate eco-friendly initiatives, such as organic toiletries and sustainable dining options. For example, hotels that use refillable shampoo and soap dispensers instead of single-use plastics not only reduce waste but also create a modern, high-end feel for guests.
  • Brand Reputation & Loyalty – Sustainability initiatives boost a hotel's reputation, making it more attractive to eco-conscious travelers. For example, partnering with sustainable brands for amenities and offering eco-friendly experiences, such as farm-to-table dining, can create a loyal customer base that values ethical travel choices.
  • Regulatory Compliance – Many governments offer incentives and tax breaks to businesses that meet sustainability criteria.
  • Community Support – Sustainable hotels contribute to the local economy by sourcing food and materials from nearby businesses, fostering positive relationships with local communities.

10 ways how you can run a sustainable hotel

1. Implement an energy management system (EMS) 

Consider the case of the Svart hotel in Norway, which has set a new standard by aiming to operate on 100% renewable energy, reducing its energy consumption by approximately 85% compared to traditional hotels. The hotel incorporates an advanced Energy Management System (EMS) to track and optimize energy usage, ensuring minimal waste while maintaining guest comfort. 

By adopting an EMS, hotels can monitor energy consumption in real time, automate HVAC and lighting controls, and identify inefficiencies, leading to significant cost savings and a reduced carbon footprint. Hotels can also integrate smart grids and AI-powered analytics to enhance energy conservation further.

2. Adopt renewable energy sources

The Sokos Hotel Pier 4 in Helsinki exemplifies the shift towards renewable energy by utilizing carbon-storing timber construction and sustainable energy solutions. The hotel's design significantly reduces embodied carbon emissions while integrating renewable energy sources such as solar panels and geothermal heating. Hotels can follow suit by installing solar panels, wind turbines, and heat recovery systems to decrease reliance on non-renewable energy sources. Implementing these renewable energy solutions not only lowers greenhouse gas emissions but also appeals to eco-conscious travelers who prioritize sustainability in their accommodation choices.

3. Reduce water consumption

In regions like California, USA, where water scarcity is a pressing issue, hotels have implemented water-saving measures such as low-flow fixtures and greywater recycling systems. These initiatives not only conserve water but also resonate with guests who value environmental responsibility.

4. Use eco-friendly products

The Populus Hotel in Denver exemplifies how hotels can integrate eco-friendly practices into their operations without relying on carbon credits. The hotel sources organic toiletries, biodegradable cleaning products, and sustainably produced linens, ensuring a non-toxic environment for guests and staff. Additionally, it prioritizes locally sourced and ethically manufactured materials, reducing supply chain emissions. These efforts not only improve indoor air quality but also contribute to long-term sustainability by eliminating harmful chemicals and reducing overall environmental impact. Hotels looking to follow this model can switch to refillable dispensers, non-toxic furniture coatings, and plant-based amenities, reinforcing their commitment to sustainability.

5. Support local businesses

El Nido Resorts in the Philippines is a prime example of how hotels can support local economies while maintaining sustainable operations. The resort collaborates with local artisans, farmers, and fishers, ensuring that the majority of its food ingredients and materials are sourced locally. This practice not only boosts the local economy but also reduces the environmental impact associated with long-distance transportation. By investing in community-driven initiatives, El Nido Resorts promotes responsible tourism while providing guests with an authentic cultural experience. Hotels can adopt similar practices by forming partnerships with local businesses, sourcing seasonal produce, and showcasing traditional crafts and cuisine, fostering both economic growth and cultural preservation.

6. Reduce food waste

Food waste is a significant challenge in the hospitality sector. Implementing portion control, composting organic waste, and donating surplus food to local charities can drastically cut waste levels. Leveraging AI-powered inventory systems can also help optimize procurement, ensuring minimal food wastage while maintaining high-quality service.

7. Encourage sustainable practices in hospitality industry

Hotels can contribute to the wider community's efforts to protect the environment by educating guests about sustainable practices and encouraging them to adopt them during their stay. This can include promoting the use of reusable water bottles and avoiding single-use plastics.

8. Create a sustainable landscape

Incorporating native and drought-resistant plants into hotel landscaping can reduce water and maintenance needs. Sustainable gardening practices, such as composting organic waste and using natural fertilizers, further support an eco-friendly environment. Green roofs and vertical gardens can also contribute to better insulation and energy savings.

9. Promote sustainable transportation

Encouraging guests to use sustainable transportation options reduces carbon emissions. Hotels can offer bike rentals, electric vehicle (EV) charging stations, and partnerships with eco-friendly car rental services. Providing shuttle services to public transit hubs can further minimize environmental impact while enhancing guest convenience.

10. Incorporate sustainable building practices

Using eco-friendly construction materials, such as recycled wood, bamboo flooring, and energy-efficient insulation, can lower a hotel’s environmental footprint. Sustainable architecture, including passive cooling and natural lighting designs, helps reduce reliance on artificial heating and cooling systems, leading to long-term cost savings.

Myths and misconceptions about sustainable hotels

Transitioning to a sustainable hotel operation is not just a passing trend; it is an essential step toward mitigating the impact of climate change and environmental degradation. The hospitality industry plays a critical role in driving sustainability efforts, but despite increasing awareness, misconceptions still persist. Many hotels hesitate to adopt eco-friendly practices due to myths about high costs, compromised luxury, or limited guest appeal. However, the reality is quite different, as sustainable hotels can be both profitable and desirable. Below, we address some of the most common myths and misconceptions surrounding sustainability in the hospitality sector:

Myth 1: Making a hotel eco-friendly is expensive

One of the biggest misconceptions about making a hotel eco-friendly is that it is expensive. While some initiatives may require initial investment, the long-term benefits far outweigh the costs. Energy-efficient appliances, a linen and towel reuse program, and waste reduction efforts lead to substantial savings while benefiting the environment.

Myth 2: Going green means sacrificing comfort and luxury 

Another common myth is that eco-friendly hotels are less comfortable and luxurious than traditional hotels. However, sustainable hotels can offer the same level of comfort and luxury while incorporating eco-conscious practices, such as organic bedding, sustainably sourced food, and energy-efficient lighting, without compromising guest experience.

Myth 3: Eco-friendly hotels attract only environmentally conscious guests 

While sustainable hotels are increasingly popular among eco-conscious travelers, they appeal to a broader audience, including those interested in wellness, unique experiences, and high-quality services. Guests value sustainability, but they also appreciate exceptional hospitality and modern amenities that come with it.

How Guestara supports sustainable hotel operations

Guestara, an AI-powered Guest Management Platform, plays a crucial role in helping hotels enhance sustainability without compromising efficiency. Here’s how:

  • Contactless Check-In: Utilizing advanced hotel check-in software, this feature eliminates paper-based registration, reducing waste and streamlining the guest experience while enhancing operational efficiency.
  • Digital Upselling: Utilizing advanced hotel upselling software, this feature promotes hotel services through digital channels, reducing the need for printed materials while maximizing revenue opportunities and enhancing guest experience.
  • Operational Efficiency: Automates guest communication, guest engagement, and housekeeping requests, optimizing resource usage and minimizing unnecessary consumption.

By integrating Guestara into hotel operations, businesses can significantly reduce environmental impact while enhancing guest satisfaction and boosting revenue.

Take action towards sustainability

Sustainable hospitality is not just an industry trend—it’s the future. By implementing these practices, hotels can lower operational costs, attract eco-conscious travelers, and contribute to a greener planet. Start by assessing current operations, setting sustainability goals, and leveraging technology like Guestara to accelerate your journey toward a more sustainable and profitable hotel business.

Kajal Makhija
Chief Marketing Officer @ Guestara
Subscribe to our newsletter
Read about our privacy policy.
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Oops! Something went wrong while submitting the form.

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