The cost of going Green

The cost of going Green

GOVERNMENT WATCH by Jean Gruss | Editor/Lee-Collier

Florida Gov. Charlie Crist told the lodging industry he wouldn't send them state business unless they go green. Florida hotels have little choice now but to comply with this voluntary program.

For a voluntary program, this one gets as close to mandatory as you can get.

The Florida Green Lodging Program established under the Florida Department of Environmental Protection (DEP) is another initiative in the long list of "green" manias sweeping every industry.

The state established this voluntary program in 2004 as recognition for hotels that promote conservation, but it wasn't until Florida Gov. Charlie Crist stepped in with an executive order that hotels started to participate in meaningful numbers.

At the July 2007 "Serve to Preserve" summit in Miami featuring environmental luminaries such as California Gov. Arnold Schwarzenegger, Robert F. Kennedy Jr. and venture capitalist Vinod Khosla, Crist ordered that state employees hold meetings and conferences at hotels with the state's "Green Lodging" designation.

Hotel operators agree: There's nothing like an executive order to get them to participate in a voluntary program. If you want to retain or land new state business, it would be wise to follow in the carbon footprints of the green governor.

Hotels are putting a brave face on the mandate and many are now complying. Consider the experience of three Southwest Florida hotels that recently obtained the Green Lodging certification. Their experience is instructive because numerous hotels are eager to be labeled as eco-friendly but they're leery of another mandate from the state and concerned about the cost. The program is so young that the state has not compiled any data yet on the cost of compliance.

Marketing to eco-tourists

If there's any place that should earn a Green Lodging designation, it's Ivey House in Everglades City, the gateway to this nature wonderland. But it wasn't until Crist signed his state-lodging order that this 34-room bed-and-breakfast decided to participate.

"We were all so busy with the boom, why go green?" says Teri Lamaine, regional director of Guest Services, the company that manages Ivey House and three other hotels in Southwest Florida.

Lamaine says Crist's order got everyone's attention after the program was ignored. Now it's green-itis. "You can't pick up a publication without seeing green-this and green-that," she says.

Although Ivey House gets little state business, Lamaine says she saw an opportunity to be the first hotel in Collier County to obtain the designation. Since customers stay at Ivey House for outdoor adventure, Lamaine reasoned that the designation would be a good marketing tool. "Eco-tourism is the fastest-growing sector" of the tourism industry, she says.

The state's program consists of three levels of standards. Hotels can earn from one to three 'palms' based on requirements that become progressively more rigorous. Once hotels earn one palm, they can plaster the Green Lodging logo on their Web site and marketing materials.

Getting the first palm wasn't difficult. "It's not like you have to rip out every toilet you have," Lamaine says. There's a menu of choices hotels can pick and choose from to comply with the first palm in areas of employee communication, water conservation, energy efficiency, waste reduction and clean-air practices.

Although Lamaine couldn't put an exact cost on compliance, she says it will take about a year to recoup the investment the hotel made on new air filters, low-flow shower faucets, compact fluorescent light bulbs, bio-degradable cleaning supplies and recyclable trash bags. "The way we're going to recoup the money is we're going to lower the cost of power and waste bills," she says.

To earn a second palm, hotels must document progress. "It's a continual improvement program and if you fail to move forward you can lose the designation," says Laura Comer, an environmental consultant with the DEP who leads the program in Southwest Florida.

There are no specific requirements for earning a second palm. "You pick what you want to do and it has to result in energy waster reduction," Comer says.

Urban hotels fight for state business

When Crist signed the green-lodging edict, hotels were concerned about how much money they would have to spend to comply. "Nobody was sure what it was going to take," says Jim Larkin, general manager of the Crowne Plaza in Fort Myers.

The Crowne Plaza was in jeopardy of losing state customers, which accounts for about 10% of its group business. "Nobody likes to be forced into anything," Larkin concedes.

Fortunately, the Crowne Plaza had recently undergone a $6 million renovation and much of the new big-ticket equipment such as air conditioners, washers and kitchen appliances were compliant with the program's energy conservation requirements. Still, the hotel had to spend an additional $20,000 for new recycle bags, special recycling bins and new cleaning carts. Larkin estimates it could take as long as 18 months to recoup the investment. Had it not been for the renovation, he estimates the hotel would have had to spend $500,000 to comply.

When the hotel switched to using biodegradable cleaning chemicals for its washing machines, Larkin spent nearly eight weeks making sure the new detergents were effective. "You can't compromise cleanliness," Larkin says. The washers had to be recalibrated to use the new solvents, so Larkin had to be sure they were effective before switching.

Another hurdle was finding the equipment to comply. For example, few companies manufacture wastebaskets for hotel rooms that let guests separate glass, paper and trash. Hotels won't put ugly recycling bins in rooms or common areas. "A year ago you couldn't find that anywhere," Larkin says. He's found some now, but they cost $52 each versus $16 for a conventional wastebasket.

In addition to the equipment, hotels have to train their staff to sort out the recycling in each room. At the Crowne Plaza, that adds two minutes to every room the staff has to clean. Although two minutes sounds like little time, it adds up over the hotel's 226 rooms.

The time spent complying hasn't been limited to the cleaning staff. Larkin estimates he's spent 500 hours on the program. "I've had a very good education in the last six months," he chuckles. Tellingly, Larkin says he had a harder time persuading top managers to buy into the program than the front-line staff because of the added responsibility.

But Larkin is confident the money the Crowne Plaza saves on energy bills and trash collection will pay for the added cost. "Our power bill dropped $9,000 despite increasing energy costs," Larkin says.

Utility bills blunt program's cost

The increase in the cost of water, sewer and energy makes the Green Lodging program easier. "Everything we've done has an upside to it," says Clark Hill, general manager of the Hilton in Naples.

Before it started recycling, the 200-room Hilton was sending 16 to 20 tons of garbage to the dump. Now, it sends 14 tons and reduced its garbage collection to once a month from three during the tourist season. It pays $47 a ton to haul the trash and $150 a month for recycling, reducing its total monthly garbage collection by about $200.

The recycling company that the Hilton uses doesn't require the staff to separate materials. Hill says he was relieved by that because there's no need for his staff to spend valuable time sorting out paper, glass and aluminum into separate containers.

That's critical because the Hilton found that guests aren't as good at conservation as some might believe. Hill estimates that only 25% of guests comply with the hotel's request they put recycling materials in a separate bag provided in each room.

The Hilton in Naples invested $25,000 to comply with the Green Lodging program and Hill estimates it will take about 18 months to recover that cost. Most of that comes from lower costs of trash hauling and energy reduction.

Utility costs aren't going to go down, Hill believes. "Water and sewer will be a major expense if we don't find ways to conserve," he says.

For example, the hotel's restaurant saved thousands of dollars by switching to organic grease-eating enzymes. Previously, it had to hire a company to pump out its six 750-gallon grease tanks. Each one cost $1,200 to clean out once a month. Now, it pays a company about $400 a month to replenish the enzymes that turn the grease into water.

Like the other hotels that have earned the Green Lodging designation, the Hilton sees marketing value in being the first hotel to earn it in Naples. It received recognition with stories in the local newspaper and chamber of commerce publications, publicity that would otherwise have cost thousands of dollars in advertising. "The feedback has been immediate for our salespeople," Hill says, though the amount of additional business has been hard to quantify in dollar terms.

In the end, Hill believes the marketing benefits of the program have outweighed the cost. He says the local tourism board is encouraging all the hotels in Collier County to participate. Hill hopes the area's lodging will get regional and even national press. "It would be a real marketing advantage."

The Green checklist

Here's what it takes to become a Designated Florida Green Lodge by the Florida Department of Environmental Protection:

Communication

The following are required:

• Make available the hotel's environmental self-assessment and planning checklist to the public upon request.

• Ensure hotel staff is familiar with the hotel's environmental policy and their role in it.

• Discuss green practices at staff meetings (agendas and minutes are required documentation).

• Communicate environmental initiatives to guests and staff using newsletters and placards in guest rooms.

• Provide a formal process for guests and staff to give feedback on green practices (suggestion boxes, surveys).

Water conservation

Three of the following conservation efforts must be implemented:

• Offer towel reuse program in guest rooms.

• Offer linen reuse program in guest rooms.

• Use low-flow faucets.

• Use low-flow showerheads.

• Use low-flow toilets.

• Use automatic faucets or toilets in the public restrooms.

• Use water-efficient washers.

Energy efficiency

Two of the following energy efficiency efforts must be implemented:

• Use Energy Star-rated equipment.

• Use programmable thermostats.

• Use senor lighting indoors and outdoors.

• Use high-energy efficient lighting.

• Use a computerized energy management system.

• Support green power by installing renewable energy generating equipment, purchase at least 5% green power through the local utility or purchase renewable energy certificates from a green-power generation source in Florida.

Waster reduction

All four waste-reduction categories must be implemented:

• Recycle at least one material, one of which must be offered to guests (office paper, newspaper, aluminum cans, magazines, steel cans and corrugated cardboard).

• Purchase minimum 30% post-consumer recycled content for one of the following products: office paper, toilet tissue, paper towels or paper napkins.

• Institute one of the following reduction activities: bulk purchasing, reduced packaging or manufacturer take-back.

• Recycle ink and toner cartridges.

Clean air practices

All the following clean-air practices must be implemented:

• Use environmentally preferable cleaners.

• Use environmentally preferable High Efficiency Particulate Air (HEPA) filters.

• Clean all air-handler units and coils at least annually; follow a preventive maintenance schedule and keep a record of activities.

REVIEW SUMMARY

Industry. Hospitality

Trend. "Green-friendly" state designation

Key. The cost of complying with energy saving requirements may be offset by the marketing benefits.