Hotels earn more when LEED certified

August 15, 2014

A new study suggests Leadership in Energy and Environmental Design (LEED)-certified hotels can be more successful than their uncertified competitors. The Courtyard Kansas City at Briarcliff is the first LEED-certified hotel in Kansas City. Photo courtesy Marriott International
A new study suggests Leadership in Energy and Environmental Design (LEED)-certified hotels can be more successful than their uncertified competitors. The Courtyard Kansas City at Briarcliff is the first LEED-certified hotel in Kansas City. Photo courtesy Marriott International

Cornell University has released a new study reporting hotels certified under the Leadership in Energy and Environmental Design (LEED) program earn increased revenue.

“The Impact of LEED Certification on Hotel Performance”[1] was conducted by Matthew Walsman, Rohit Verma, PhD, and Suresh Muthulingam, PhD, from the university’s Center for Hospitality Research (CHR). In total, 93 LEED-certified hotels were compared to 514 competitive non-certified facilities. Performance review data over a two-year period was supplied by CHR partner, Smith Travel Research (STR), for the comparisons. Data used was the average daily rate (ADR) and revenue per available room (RevPAR).

The findings indicated the boost in revenue was found in various types of hotels, although most compared were luxury facilities in both urban and suburban locations.

“We’ll have many more hotels to study in the future,” said Walsman. “Now companies like Marriott have included LEED as part of their own design specifications for new constructions.”

The initial LEED program did not directly include hotels, but in the newest LEED v4 includes hospitality-specific categories.

According to researchers, the next data that should be considered is a cost analysis between LEED-certified and not certified hotels, in addition to this study of only profits.

Endnotes:
  1. “The Impact of LEED Certification on Hotel Performance”: https://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-18084.html

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