ESG expectations are rising faster than hotels can adapt

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Why rising guest, corporate, and financial demands are exposing sustainability gaps in high-end hospitality

Nov 28, 2025

There is growing pressure on luxury hotels to deliver credible sustainability practices amid rising expectations from younger travelers, corporate guests, and financial institutions. Panelists at the Inspire: Luxury Hospitality Conference stressed that while sustainability is now non-negotiable in the luxury segment, many hotels still struggle to translate rhetoric into meaningful action. The discussion highlighted operational, cultural, and financial challenges — from aligning multinational staff to navigating costly certification standards. Experts agreed that better education, data transparency, and industry collaboration are essential to driving long-term, commercially viable ESG progress.

Key takeaways

Mandatory ESG expectations: Younger leisure travelers and corporate clients increasingly demand sustainability commitments, making ESG alignment essential in luxury hotels.
Gap between rhetoric and practice: Many luxury properties promote sustainability in marketing but lack consistent, integrated implementation across departments.
Financial institutions driving change: European banks now require sustainability measures for hotel projects, influencing development decisions and long-term asset value.
Operational alignment challenges: Multinational teams, differing languages, and varying levels of ESG understanding complicate execution and reporting.
Shared responsibility between staff, management and guests: Hotels must communicate policies clearly and lead by example to create consistent behaviors throughout the property.
Water remains an under-prioritized resource: Experts highlighted water efficiency as a major blind spot in hotel ESG programs, likely to grow in importance as energy improvements mature.
Rising costs and difficult trade-offs: Some certification requirements increase operational costs by up to 40%, leading hoteliers to question which standards genuinely deliver impact.
Need for better data and transparency: Hoteliers are encouraged to benchmark sustainability metrics as openly as they share performance data like RevPAR to accelerate learning.
Collaboration and regulatory clarity: Industry-wide efforts — supported by clear guidance from regulators — are seen as essential to scaling meaningful sustainability outcomes.
Importance of emotional engagement: ESG communication must be sincere, emotionally resonant, and paired with technology to inspire participation from guests, staff, and partners.