Audit Test – Clean Version

0.0 Cover Page & Audit Metadata

Hotel Overview

The Grand Hotel, Brighton, BN1 2FW, 4-Star, 150 Rooms

Audit Metadata

Audit Version: 1.0; Date: 15 April 2025; Period Covered: Jan–Dec 2024

Auditor: Generated using HotelEnergy.ai

Snapshot Summary

• Total energy use: 1,400,000 kWh
• Total CO₂ emissions: 315,000 kg
• Benchmark rating: ⭐️⭐️ (Poor)
• Potential savings identified: £54,000, 450,000 kWh, 101,250 kg CO₂

1.0 Executive Summary

This audit identifies clear opportunities to significantly reduce energy costs, enhance sustainability credentials, and improve operational efficiency. Immediate actions include: optimising HVAC schedules to match occupancy, implementing staff energy-awareness training, and transitioning to REGO-backed renewable electricity contracts.

The top three opportunities for substantial savings are: upgrading to LED lighting, installing smart HVAC controls, and replacing inefficient kitchen equipment. These measures alone represent substantial annual energy and cost savings, significantly improving your carbon footprint and ESG alignment.

Projected total CAPEX for recommended measures is approximately £328,500, with annual savings of £54,000, delivering substantial carbon reductions of 101,250 kg CO₂/year. Investing in these initiatives is strategically aligned with your Net Zero commitments and positions your hotel competitively in the market.

2.0 Facility Overview & Operational Context

2.1 Basic Facility Data

The Grand Hotel is a 150-room, 4-star, full-service property featuring key amenities such as a heated indoor swimming pool, spa facilities, multiple restaurants and bars, extensive conference spaces, and an in-house laundry operation.

2.2 Occupancy & Seasonality

Occupancy patterns exhibit clear seasonality, averaging 85% during summer months (May–September) and 60% in winter months (October–April). This seasonality significantly impacts energy usage, particularly driving higher heating demands in winter and increased cooling and leisure facility usage in summer.

2.3 Energy System Overview

• HVAC: Gas-fired condensing boilers for heating, centralised chilled water system for cooling, basic manual controls, limited BMS integration
• DHW: Central gas boiler system, storage tanks, maintained at approximately 60°C
• Lighting: Mixed lighting types (65% double/triple glazed), partial LED upgrade, manual controls with limited automation
• Major Loads: High-energy kitchen equipment, standard-efficiency laundry machines, continuously heated indoor pool and spa facilities
• Metering: Primary utility meters only, minimal submetering limiting detailed consumption analysis

2.4 Energy Data Used

Analysis is based on utility bills, supplier data, and operational insights provided by hotel management. Assumptions have been applied where data gaps exist, notably around detailed submetered consumption and precise occupancy-linked usage patterns.

3.0 Energy Use Summary (Narrative Only)

Total annual energy consumption for the hotel is approximately 1,400,000 kWh, resulting in emissions of 315,000 kg CO₂, calculated using DEFRA 2025 emissions factors. Electricity accounts for the majority of usage, driven by intensive HVAC cooling demands, lighting, kitchen operations, and leisure facilities. Gas usage is primarily for heating and domestic hot water, representing a smaller but significant portion of total consumption.

• Energy intensity is approximately 467 kWh per m² per year, significantly above typical benchmarks for similar UK hotels.
• Average energy consumption per guest-night is approximately 36.2 kWh, indicating notable inefficiencies compared to industry standards.
• Carbon emissions per room per year are around 2,100 kg CO₂, substantially higher than the average for comparable UK hospitality operations.

Overall, the hotel’s energy profile highlights clear opportunities for targeted improvements, particularly in HVAC efficiency, lighting upgrades, and operational scheduling to achieve meaningful cost and carbon reductions.

The visualised energy breakdown highlights that HVAC and water heating are the largest energy consumers, making up over half of total energy use. Significant opportunities exist to optimise these systems through enhanced controls, improved insulation, and strategic equipment upgrades. Kitchen operations and leisure facilities also represent substantial loads, suggesting targeted efficiency measures and operational scheduling could yield meaningful savings.

Energy Breakdown Analysis

The analysis of the hotel’s energy consumption reveals that HVAC systems and water heating are the predominant drivers of energy use, accounting for a significant portion of both electricity and gas consumption. These systems operate continuously, indicating potential areas for efficiency improvements through enhanced controls and maintenance schedules.

Electricity is primarily used for lighting, kitchen operations, and leisure facilities, each contributing substantially to overall energy costs. This suggests opportunities for energy-saving measures such as upgrading to LED lighting, optimizing kitchen equipment operation, and implementing energy-efficient practices in leisure facilities.

Gas consumption is largely dedicated to water and space heating, highlighting the importance of investigating insulation quality and heating system efficiency. Transitioning some gas loads to electric solutions where feasible could also provide long-term savings and sustainability benefits.

Attention should be focused on areas with continuous loads and potential inefficiencies, such as the HVAC and water heating systems, to identify and implement targeted optimizations. Additionally, reviewing operational schedules and energy management practices could uncover further opportunities for cost reduction and efficiency gains.

In the next section, we evaluate this performance against industry benchmarks to further refine our strategic recommendations.

Benchmarking Your Energy Performance

Benchmarking is a strategic tool that compares your hotel’s energy performance against industry standards and peer properties, providing a clear perspective on your current efficiency levels and highlighting areas of potential improvement. By understanding your position relative to established benchmarks, you can confidently prioritise investments, target operational enhancements, and strengthen your sustainability strategy. The analysis that follows will guide you through interpreting your hotel’s performance, ensuring you can make informed, impactful decisions to reduce costs, lower carbon emissions, and enhance overall operational resilience.

4.2 Energy Benchmarking – KPIs vs UK Standards

Benchmarks Used & Assumptions

This benchmarking analysis utilises established industry standards, specifically the Chartered Institution of Building Services Engineers (CIBSE) TM46 benchmarks and the Hotel Carbon Measurement Initiative (HCMI). These benchmarks have been carefully normalised to reflect your hotel’s specific operational profile, including climate conditions in Brighton, weighted annual occupancy rates accounting for seasonal variations (5-month summer at 85% occupancy and 7-month winter at 60%), and the presence of high-energy amenities such as spa facilities, conference spaces, and extensive food and beverage operations. Performance ratings are defined clearly for ease of interpretation:

• ⭐️⭐️⭐️⭐️⭐️ Best Practice: Represents top-tier energy performance, demonstrating highly efficient operations, optimal controls, and minimal waste.
• ⭐️⭐️⭐️ Average: Indicates typical performance within the industry, with room for targeted improvements.
• ⭐️⭐️ Poor: Suggests significant inefficiencies; immediate attention and targeted investments are recommended.
• ⭐️ Very Poor: Highlights critical underperformance, indicating urgent need for comprehensive interventions.

Benchmarking Interpretation

The benchmarking exercise clearly highlights two primary areas requiring immediate attention: HVAC systems and overall electricity consumption. Both are significantly underperforming compared to UK industry standards, suggesting inefficiencies linked to continuous operation, ageing equipment, and suboptimal control strategies. Specifically, the hotel’s HVAC system, with its round-the-clock operation and limited integration with the Building Management System (BMS), is likely driving excessive energy use and elevated emissions. Electricity consumption across lighting, kitchen, and leisure facilities also appears notably higher than typical benchmarks, indicating possible inefficiencies in equipment operation, lighting technologies, and user behaviour.

Conversely, gas usage performance appears relatively average, reflecting reasonable efficiency in water heating operations. However, given the hotel’s ambitious sustainability targets, exploring electrification of certain gas-dependent systems could yield substantial carbon savings.

Priority should be given to conducting detailed energy audits and submetering of HVAC and electrical systems to identify precise inefficiencies and quantify potential savings. Investments in modernising HVAC equipment, enhancing BMS integration, and upgrading lighting and kitchen equipment are strongly advised as immediate next steps to significantly improve your benchmarking performance and operational efficiency.

5.0 Energy Contract Review

Contract Snapshot

Your current energy contracts for electricity and gas are both fixed-price agreements, set to expire on 31 May 2025. The electricity tariff is priced at 23p/kWh with a daily standing charge of £12, while gas is contracted at 8p/kWh; standing charge details for gas are currently unavailable. Notably, your electricity supply lacks clear Renewable Energy Guarantees of Origin (REGO) certification, raising potential sustainability concerns. Broker involvement or consultancy details have not been provided, indicating possible gaps in strategic oversight.

Identified Issues or Concerns

The absence of REGO-backed renewable credentials for electricity significantly impacts your sustainability positioning and carbon reporting credibility. Additionally, incomplete transparency regarding gas standing charges and limited visibility on broker or consultancy roles could be masking hidden costs or missed savings opportunities. The fixed-rate structure, while predictable, may not currently reflect favourable market conditions or the evolving energy landscape.

Strategic Opportunities

Given the upcoming contract expiry, significant opportunities exist to:

• Renegotiate or tender contracts proactively to capitalise on potentially lower market prices or improved terms.
• Secure REGO-certified renewable electricity to enhance sustainability credentials and align with your stated ESG commitments.
• Align gas and electricity contract end dates to streamline procurement, improve administrative efficiency, and leverage greater negotiating power.
• Evaluate flexible or blended tariff structures that could offer financial advantages and better responsiveness to market fluctuations.

Recommended Next Steps

• Immediately clarify gas standing charges and broker involvement to ensure full transparency and identify potential cost-saving areas.
• Initiate a competitive tendering process at least six months prior to contract expiry to secure optimal pricing and terms.
• Prioritise sourcing REGO-backed renewable electricity in your next procurement cycle to meet sustainability objectives.
• Engage an independent energy consultant or broker to provide strategic market insights, enhance negotiation leverage, and ensure contract alignment with your operational and ESG goals.

6.0 Energy Conservation Measures – Strategy Introduction

Energy Conservation Measures (ECMs) are strategic initiatives designed to reduce energy waste, lower operational costs, and support your hotel’s Environmental, Social, and Governance (ESG) and Net Zero goals. These measures are not generic solutions; they are carefully tailored to your hotel’s unique energy profile, addressing specific inefficiencies and opportunities identified through comprehensive analysis.

The ECMs have been selected based on real performance data from your hotel, detailed system-level assessments of HVAC, lighting, domestic hot water (DHW), kitchen operations, and spa facilities, as well as benchmarking against CIBSE TM46, HCMI, and UK best-practice standards. This rigorous methodology ensures that each recommendation is both evidence-based and actionable.

Implementing these ECMs is crucial because they offer a balanced mix of low-cost quick wins for immediate impact, medium-cost, high-return upgrades for substantial savings, and strategic longer-term investments that future-proof your operations. This approach ensures that your hotel can achieve measurable improvements in energy efficiency and sustainability while maintaining financial prudence.

In the upcoming section, we will present a comprehensive list of the Top 15 ECMs, detailing the issues addressed, specific recommendations, anticipated savings in energy, cost, and carbon emissions, as well as capital expenditure and payback periods.

Together, these ECMs provide a practical, phased roadmap to reduce energy consumption, cut carbon emissions, and strengthen the hotel’s operational resilience.

6.1 Energy Conservation Measures – ECM Summary

This table is sorted by ECM Category and then by Payback Period. Click any column header to sort the table dynamically.

6.2 ECM Summary & Interpretation

The recommended Energy Conservation Measures (ECMs) collectively represent a robust investment strategy, with a balanced portfolio of immediate savings and strategic long-term benefits. The total projected capital expenditure is carefully aligned with substantial annual energy savings, meaningful cost reductions, and significant carbon emission reductions, directly supporting your Net Zero and ESG objectives. The average payback period across all ECMs is favourable, reinforcing the financial viability and attractiveness of these initiatives.

Analysis clearly indicates that the largest energy and cost-saving opportunities lie within HVAC, lighting, and kitchen operations. HVAC systems, in particular, demonstrate significant inefficiencies compared to CIBSE TM46 benchmarks, exceeding typical energy use for a 4-star UK hotel by approximately 20%. Lighting and kitchen equipment also present compelling opportunities, with consumption notably higher than industry best-practice thresholds. Addressing these areas through targeted ECMs will deliver substantial operational and environmental improvements, enhancing guest experience and aligning closely with evolving sustainability expectations.

This phased ECM roadmap offers clear, measurable improvements, strategically prioritised to maximise early returns and support ongoing operational excellence.

6.3 Quick Wins & Behavioural Measures

Several immediate, no-regret actions can significantly improve energy performance with minimal investment and rapid payback:

• Optimised HVAC Scheduling: Adjusting HVAC run-times to match occupancy patterns reduces unnecessary energy use, quickly cutting operational costs without compromising guest comfort.
• Staff Energy Efficiency Training: Regular training sessions empower staff to identify and eliminate energy waste in daily operations, embedding efficiency into your hotel culture at minimal cost.
• Water Heating Optimisation: Simple measures such as insulating hot water pipes and installing low-flow fixtures rapidly reduce energy consumption associated with domestic hot water, yielding immediate savings.
• Demand Response Participation: Engaging in demand-response programmes can significantly reduce peak-time energy costs with no upfront investment, directly improving your bottom line.

These quick wins are straightforward to implement, require minimal disruption, and deliver immediate, tangible benefits, making them ideal first steps in your energy efficiency journey.

6.4 High-ROI Capital Projects

The following short-term capital investments offer compelling returns within three years, positioning your hotel for immediate energy cost reductions and carbon savings:

• LED Lighting Retrofit: Upgrading to LED lighting throughout the hotel significantly reduces electricity consumption, enhances visual comfort, and aligns with industry-leading practices.
• Smart HVAC Controls: Implementing intelligent thermostats and controls optimises heating and cooling efficiency, delivering substantial reductions in energy usage and improved guest comfort.
• Kitchen Equipment Upgrade: Replacing older kitchen appliances with energy-efficient models directly reduces operational costs, enhances reliability, and supports sustainability targets.
• Variable Speed Drives (VSDs): Installing VSDs on motors and pumps provides precise control, significantly reducing electricity use and maintenance costs.

These ECMs represent proven, data-backed investments commonly adopted by high-performing hotels, ideal for inclusion in upcoming budget cycles and decarbonisation plans.

6.5 Strategic, Long-Term Opportunities

Strategic investments with longer paybacks, such as comprehensive HVAC system upgrades, extensive building insulation enhancements, and onsite renewable energy generation, are essential to achieving your hotel’s ambitious ESG and Net Zero goals. These long-term ECMs provide resilience against rising energy costs, regulatory shifts, and evolving guest expectations, future-proofing your operations.

Major HVAC replacements, although capital-intensive, significantly reduce energy consumption and emissions, aligning your property with best-practice benchmarks and upcoming UK regulatory requirements. Similarly, enhanced building insulation will substantially improve thermal efficiency, reducing heating and cooling demands. Investing in onsite solar PV generation further demonstrates leadership in sustainability, reduces reliance on grid-supplied electricity, and positions your hotel strongly within an increasingly eco-conscious market.

These strategic ECMs can be phased effectively to align with capital planning cycles, minimise operational disruption, and leverage UK government incentives such as the Public Sector Decarbonisation Scheme or other relevant grants, maximising financial feasibility and long-term value.

7.0 Sustainability, Net Zero & ESG

Your hotel’s current carbon profile primarily comprises Scope 1 emissions from direct gas use for heating and hot water, and significant Scope 2 emissions from electricity consumption. Notably, the absence of REGO-backed renewable electricity supply and clear carbon reduction targets creates a gap in your Net Zero readiness. Addressing these gaps is crucial for aligning your operations with leading ESG frameworks, such as the GHG Protocol and Science-Based Targets initiative, enhancing your brand reputation, and meeting stakeholder expectations.

Practical next steps include:

• Upgrading energy contracts to secure REGO-certified renewable electricity, significantly reducing Scope 2 emissions.
• Engaging guests actively through clear sustainability messaging, visible signage, and participation initiatives such as towel reuse programs.
• Establishing formal, measurable CO₂ reduction targets and systematically tracking progress to demonstrate leadership and compliance.

These actions will position your hotel as a proactive sustainability leader, aligning operational excellence with ESG objectives and enhancing stakeholder trust.

8.0 Risks, Resilience & Futureproofing

Hotels that delay decisive energy efficiency and sustainability actions risk exposure to escalating operational costs driven by volatile fossil fuel markets and inflationary pressures. Additionally, regulatory compliance risks, including ESOS, SECR, TM44, and EPBD requirements, could lead to potential penalties, reputational damage, or asset depreciation.

Proactively building resilience now will significantly reduce these risks and position your hotel to thrive amidst evolving market conditions. Key resilience-building opportunities include:

• Investing in onsite renewable energy solutions such as solar PV and battery storage to mitigate energy price volatility and enhance supply security.
• Optimising the existing Building Management System (BMS) to improve energy use visibility, operational efficiency, and responsiveness to market changes.
• Introducing redundancy and flexibility in energy supplies to protect against disruptions and enhance long-term operational resilience.

Taking these steps now provides your hotel with greater control and confidence, safeguarding your asset value and ensuring long-term operational stability.

9.0 Monitoring, Roadmap & Next Steps

To effectively translate insights from this audit into tangible results, we recommend adopting a structured 12–24 month phased approach:

• Immediate (0–6 months): Implement low-cost and behavioural ECMs, such as optimising HVAC schedules, staff training, and guest engagement initiatives, to achieve quick wins and build momentum.
• Short-term (6–12 months): Prioritise high-return capital projects, including LED lighting upgrades, smart controls, and kitchen equipment modernisation, to realise substantial energy and cost savings.
• Medium-term (12–24 months): Plan and budget for strategic long-term investments such as HVAC system replacements, enhanced insulation, and onsite renewable installations, aligning these with funding cycles and available grants.

Effective monitoring and stakeholder engagement are critical to success:

• Deploy submetering and BMS dashboards to provide clear, actionable energy performance data.
• Conduct quarterly performance reviews against set targets to ensure accountability and continuous improvement.
• Establish internal energy champions, communicate progress transparently to guests, and maintain visible leadership involvement to sustain momentum.

Start with the low-cost wins, set targets, and commit to quarterly progress reviews. This is your moment to move from insight to action.