Managing a hotel can be costly, with expenses such as soft goods (bedding, towels, and draperies), labor for hospitality services and property maintenance, insurance premiums, and taxes. Another significant expense is utilities.
According to a CBRE article titled “Sustainability Practices Help Control Hotel Utility Costs,” implementing energy-efficient technology can help reduce utility costs while maintaining guest comfort.
The cost of utilities is on the rise due to market disruptions, geopolitical tensions, and extreme weather events. The demand for electricity is forecasted to increase along with water and sewage prices due to strained resources and aging infrastructure.
In the hospitality industry specifically, utility costs have increased by an average of 3.5% in 2023-2024. However,this is still lower than the overall operating expenses which saw a 6.6% increase during that same period.
Utility costs vary depending on the type of property – limited-service hotels versus resorts will have different expenses. On average in 2024,the annual utility cost per available room was estimated at $2
