CHLA January February 2019

www.calodging.com January/February 2019 9 and see that Verdant’s energy management system has created over $192,000 in additional property resale value. Add in the three years’ worth of actual electricity cost reductions, and Verdant’s energy management system has generated over $235,000 in additional value for this hotel in just three years, while requiring a total investment of only $27,000. Hotel owners in California stand to improve their bottom line significantly given their higher than average energy costs. In some areas of the state, those served by Pacific Gas & Electric in particular, can benefit from extremely generous rebate programs that cover up to 100% of Verdant’s system cost. Numbers that Matter In any business, there’s a strong incentive to measure whatever you can—revenue, profits, costs, etc. The difference between a struggling and a successful business, however, is the difference between measuring what you can and measuring what matters. In the case of GOPPAR, it’s a matter of measuring what really matters because you’re not just measuring how much revenue a hotel property has generated. You’re also measuring how much that revenue cost you and, as a result, how much of that revenue was profit. Since energy consumption is one of a hotel’s biggest overhead costs, anything that reduces that consumption (and its corollary costs) will improve a hotel’s GOPPAR. Of course, compromising on guest experience is rarely an option when looking for ways to increase profitability. With a smart energy management system, however, hotel owners can reduce superfluous energy consumption without compromising on guest experience, allowing them to increase GOPPAR, profits, and even their resale value.  John Attala is the Director of Marketing at Verdant Environmental Technologies. Verdant is an industry leader in commercial energy management solutions. Verdant energy saving thermostats and Verdant EI™ energy management service deliver significant energy savings without compromising guest comfort. 1. PKF Hospitality Research, a CBRE Company, Trends® in the Hotel Industry.