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No Room for Inefficiency at Hilton Hotels

Hilton Hotels Corporation recently announced a five-year sustainability plan centering on four key issues: a 20 percent reduction in CO2 emissions, waste output and energy consumption from direct operations, as well as a 10 percent water consumption reduction. Hilton’s sustainability initiative, which begins in January, 2009, will take place throughout its 3,000 hotels in 74 countries that attract more than a quarter billion guests annually.

Wolfgang Neumann, area president for Hilton Europe, noted that the hospitality industry -- including Hilton's properties -- has been "over-indulgent" in how it uses resources. Hilton’s European properties began to change those habits two years ago, laying the groundwork for similar sustainability efforts recently introduced in the company’s U.S. operations. The European effort resulted in a 10 percent decrease in energy and water consumption.

To develop its five-year plan, Hilton hired Blu Skye Sustainability Consulting to analyze the company’s operating procedures from a cross-section of its hotels. "We learned the importance of involving executives at multiple levels of our organization for the most impactful program," says Christopher Corpuel, Hilton's vice president of global sustainability. 

Augmenting Hilton’s five-year plan are long-term goals, such as the advancement of sustainable design and construction, operations, chemical management and purchasing. Hilton is evaluating and implementing additional alternative energy options, including solar power, co-generation, and increasing the adoption of fuel cells.

Checking In With Franchise Owners

The primary challenge in instituting the sustainability measures is that the majority of Hilton hotels are franchised, according to Corpuel. Therefore, the company established a step-by-step communications process that framed the goals so that they could be achievable by franchise owners. "Fortunately, our franchise owners recognize the strong need for a sustainability policy and are highly supportive," says Corpuel.

"Another challenge is that our hotels are located all over the world, and there are varying degrees of environmental awareness, with some geographic areas being highly engaged and others not even offering recycling programs," Corpuel says. "So we need to take a leadership role to encourage helpful legislation in these areas as well as partner with entities that can help us realize our goals..." 

Staff training and education programs in the U.S. are still in their infancy, but Corpuel says they will be closely modeled after Hilton’s "We Care" program that debuted in 2006 in the United Kingdom, Europe and Africa. The company kicked off the program with a "green box" sent to all hotels offering detailed instructions on how to set up the program and conduct staff training.

The program is based on five pillars: environmental policy; guidelines for sustainable siting, design and construction; an environmental training program; environmental reporting, and the company's internal HiWay Intranet tool.
 
Hilton has scored a number of "firsts" in green lodging recognition:

  • The Hilton Vancouver, Washington became the first hotel worldwide to earn both Leadership in Energy and Environmental Design (LEED) and Green Seal certifications.  
  • Hilton was the first hospitality industry company to receive the Energy Star award from the Environmental Protection Agency and U.S. Department of Energy.
  • Hilton installed a fuel cell power system at its 1,980-room Hilton New York property. The system is three times more energy-efficient than the electric grid when used in combined heat and power applications as well as to heat water.


Travelers Not Booking Green

But will these policies attract more guests?

"Very likely only a very small percentage of guests seek out hotels that offer sustainable design and services," says Corpuel. While websites listing green hotels are making it easier to search for sustainable facilities, it is more common that travelers seek locations based on business or leisure goals, he adds.

However, groups seeking green properties to book meetings are adding to a "rapidly-growing" market segment, Corpuel says. "Clearly, a growing number of group meetings are predicated on sustainable products and services being offered on property. More groups include questions about our sustainable commitments in the Request For Proposal (RFP) process," he adds.

Hilton’s efforts are being conducted against the backdrop of a growing green trend in the U.S. hospitality industry. While U.S. green lodging initiatives are typically state-based (whereby states rank lodging facilities according to their environmentally-friendly practices), Hilton’s national environmental initiatives operate beyond the scope of state programs.

Glenn Hasek, publisher of Green Lodging News, says it’s difficult to assess how many hotels have instituted sustainability measures because "there’s no one out there counting." He estimates there are more than 4,000 lodging facilities listed on green websites or certified as green – representing less than 10 percent of the lodging market. But many other hotels that are not receiving publicity may also be engaging in sustainability efforts, he adds.

With increased demand for world travel impacting water and energy resources, a move toward sustainability positions Hilton to make a difference "environmentally, socially, culturally, and economically," according to Christopher J. Nassetta, Hilton president and CEO. "Around the world, demand for energy continues to grow and fresh water scarcity is becoming a global reality," Nassetta says.

"We must operate our business in ways that provide for current needs while allowing future generations to meet their own needs. This is the essence of sustainability and the path we must follow. Not only is it the right thing to do as responsible global citizens, it's the right thing to do for our business."

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Image courtesy Hilton Hotel Vancouver Washington

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