The cost savings of sustainability are well appreciated in the hospitality industry, and oftentimes these can be achieved by internal programs that drive staff practices, procurement strategies, and building renovations that improve energy and water efficiency and reduce waste. Obtaining a certification that validates the property’s sustainability is an added challenge, since the criteria of an external organization will now have to be satisfied. But many hoteliers find that stringent process quite worthwhile.
“Certified sustainability provides a robust framework that not only yields operational cost savings but also enhances marketability, reduces risk, and potentially opens up new revenue streams,” observed Stefan Mühle, vice president, regional managing director, Noble House Hotels & Resorts. “Internal sustainability programs can achieve some similar goals but may lack external validation, which affects brand perception, consistency in operational improvements, and access to certain markets or incentives.” Marianne Balfe, vice president, sustainability, Highgate, confirmed the business advantages of certification: “Certified properties see positive impacts on reputation and brand preference, translating to increased guest loyalty and often higher booking rates.”
Bruce Becker, owner, architect + developer, Hotel Marcel in New Haven, Connecticut—a LEED Platinum-certified, 100 percent electric hotel—added that certification has a “strong marketing benefit … particularly in booking additional group business with the increasing number of organizations that are measuring and reporting their progress in meeting sustainability goals.” Balfe also observed that “corporate RFPs increasingly ask whether each respective hotel has achieved a globally recognized third-party green certification.”
Choosing a Certification
With those business-driving advantages in mind, it’s important to select a sustainability certification that is well known and respected in the travel industry—by both eco-conscious guests and hotel brands. Crescent Hotels & Resorts had this criterion in mind when it selected Green Key Global, which is jointly operated by the AHLA and the Hotel Association of Canada. “This certification is recognized internationally and focuses on various aspects of sustainability, making it a comprehensive choice for our properties. As Crescent Hotels & Resorts manages properties of many different brands, it was crucial to determine which certification programs were accepted by these brands,” explained Abdi Mohamed, regional director, sales and marketing, Crescent Hotels & Resorts. Noble House Hotels & Resorts also selected Green Key Global “after doing extensive research into the certification process, requirements, and reputation within the hospitality industry. Green Key Global was chosen as it is the hotel and lodging industry’s sustainability certification program of choice,” said Mühle.
Among certifications for green buildings, LEED has the most cachet, which was a factor in the Hotel Marcel team’s decision to pursue it. “As the most widely respected green building standard, LEED conveys the greatest benefit in terms of marketing and substance—there are many meaningless certifications and standards, some of which can be earned without any verification in as little as 48 hours,” Becker noted. “The general public is increasingly aware of and skeptical about ‘green-washing,’ and less rigorous green building certifications can do more harm than good, in the same way that offsets are now been viewed as undermining substantive sustainability progress.”
In addition to the certification’s pedigree, alignment with the vision and goals of the certifying organization is a key consideration for hoteliers. For example, Noble House has “committed to being 100 percent enrolled in Green Key Global’s Eco-Rating Program” in part because the program “supports education and awareness of sustainable practices for hotel staff and guests, creating a culture of responsibility and respect for the planet,” said Mühle. The company has also chosen to embark on Green Seal, certifying several of its hotels and resorts with Green Seal’s Standard for Hotel and Lodging Properties (GS-33). “Green Seal is a nonprofit organization whose mission is to use science-based programs to empower consumers, purchasers, and companies to create a more sustainable world. Green Seal sets leadership standards that aim to reduce, to the extent technologically and economically feasible, the environmental, health, and social impacts throughout the lifecycle of products, services, and companies. This was of particular interest to Noble House,” he explained.
Highgate, whose North American properties are primarily certified through Green Key Global, has found that the standards align with Highgate’s sustainability priorities, while providing thorough support and tools while still being budget-conscious, said Balfe. “We value GKG’s alignment to the 17 UN Sustainable Development Goals and sourced input from WSHA, Travalyst, and ISO, providing a comprehensive framework that covers critical areas such as decarbonization, energy and water conservation, waste reduction, and community engagement.”
Operational Benefits
As Mühle pointed out, meeting external sustainability standards can lead to more “consistency in operational improvements” than an internal program, and that rigorous guidance can translate to better results. The operational impact on Crescent’s hotels is an example. “The certification process primarily helped us with continuing our teams’ focus on their sustainability efforts. Green Key Global provides a current rating and a clear plan for improvement,” Mohamed related. “This plan helps our hotels prioritize actions for both short- and long-term success. As a result, many of our hotels have improved their ratings from 3 Keys to 4 Keys, and a few have even achieved the highest rating of 5 Keys.”
Mühle detailed several enhancements to the sustainability of Noble House’s properties that resulted from complying with Green Key Global and Green Seal in areas such as energy efficiency, water conservation, waste reduction, ethical sourcing, and indoor environmental quality. Examples include:
- Significant reductions in energy consumption, leading to lower operational costs and reduced carbon footprint;
- Reduced water usage, especially in landscaping and guestroom operations, which is crucial for regions facing water scarcity or high utility costs;
- Lower waste disposal costs, improved recycling rates, and a reduced environmental footprint through circular economy initiatives;
- Better alignment with the expectations of eco-conscious guests; and
- Enhanced guest satisfaction due to better air quality and comfort, as well as improved employee health and productivity.
A prime example of the energy cost savings that can result from implementing a certification program comes from Hotel Marcel, the nation’s first Passive House-certified hotel and the largest Passive House-certified hotel in the world. “We committed to meeting Passive House standards based on the underlying building science of the Passive House system, which allows one to build a building that uses less than half the energy as a conventional code compliant building,” Becker explained. “We did this out of self-interest since it cut our energy bill by 75 percent. A typical hotel in the Northeast spends over $15 per occupied room per night on energy. Hotel Marcel spends less than $3, saving us over $300,000 each year.”
Support Along the Way
Ideally, a certifying organization does not leave its enrollees in a vacuum during the process of preparing the property for assessment. But it should be noted that “processes vary,” said Mühle. “While certifications with some organizations are based on initial self-audits that will be verified at a later point, organizations such as Green Seal follow a very defined path to eventual certification, which has been super helpful for our properties. While a very detailed step-by-step approach can take months to complete, it serves as an incredible training tool along the way.” Green Key Global offered robust support along the path to certification. “We wanted a partner that would assist our teams throughout the assessment process. Green Key Global stood out because they offer more than just certification; they act as a sustainability partner,” said Mohamed. “They understand our sustainability and certification goals and have assigned an account manager to help us achieve them. Additionally, we are organizing a call series to keep certification efforts top of mind for our hotels in 2025, ensuring continuous progress and engagement.”
Becker noted that the U.S. Green Building Council (the certifying organization for LEED) offers “excellent support and education, such as at the annual GreenBuild conference,” while the Passive House Institute, Passive House Network, and Passive House Accelerator “provide excellent online resources and training.” By taking advantage of these resources, hoteliers can set themselves up for success in meeting extensive certification criteria.
However, Becker still recommends hoteliers partner with a third-party consultant to “coordinate the design requirements with the project team at the outset and throughout the design and construction process. It is the consultant hired to oversee the certification process that an owner would work with most closely, and for Hotel Marcel we engaged Steven Winter Associates for both certifications and had a great working relationship with both certification teams.” Balfe confirmed that “for green building certifications like LEED and BREEAM, third-party consultants are often essential for meeting certification standards. The complex scoring methodologies for rating determination need to be considered throughout the design-build process for every aspect of the project.” Additionally, a third-party consultant can conduct a mock audit, which “allows teams to identify any gaps or weak areas before the formal audit,” she added (see the sidebar on page 19 for more tips on the certification process).
A Calculated Decision
While there are several great certification programs that are widely respected and offer well-supported pathways to a new level of sustainability, whether to embark on such a process should still be carefully weighed in light of several factors. “The choice between certification and internal sustainability should be based on long-term goals, the desire for external validation, and how much your market values certified green practices,” Mühle advised. “Certification often delivers higher ROI in terms of reputation and business development, whereas an internal program might focus more on cost efficiency without external benchmarking.”
