IHG ups sustainability ante with low carbon program

INTERNATIONAL REPORT - With more guests and meeting planners seeking out sustainable travel, IHG Hotels & Resorts has launched its Low Carbon Pioneers program, which brings together energy efficient hotels that have no fossil fuels combusted on-site (except for backup generators that fall below 5% total annual energy consumption) and are backed by renewable energy.

IHG said this group of low operational carbon hotels is the first community of its kind in the industry and will help it test, learn and share findings on sustainability measures. The ambition is to inspire other properties to join the program and also help encourage wider adoption of carbon reduction practices across IHG’s portfolio. The first Low Carbon Pioneer hotels include the Holiday Inn Express Madrid Airport; Iberostar Waves Cristina, Spain; and Kimpton BEM Budapest.

IHG said additional hotels will join the Low Carbon Pioneers program across all regions, but no targets have been set.

IHG is also developing a “low-carbon ready” group of hotels in preparation for when it becomes possible to fully back all energy with renewables in countries or districts where this is not currently available. The full criteria for a Low Carbon Pioneer hotel is available here.

An IHG spokesperson told Hotel Investment Today that they wouldn’t divulge their investment in the project, adding that owners don’t have related costs to join the program.

Collectively, we believe these benefits should lead to stronger property valuations in future. In terms of specific cost saving initiatives, ROI will vary by location based on differences between electricity and gas prices in each region.

IHG spokesperson

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When asked about the expected ROI for owners who need to invest to become eligible for the program, the spokesperson said, “We believe that there are numerous benefits to owners and the Low Carbon Pioneers program can play an important role in future-proofing their businesses… With almost all IHG top global corporate accounts setting net-zero or carbon-neutral targets, these hotels will be attractive to corporate clients looking to meet their own sustainable travel commitments.

“Energy efficient, lower operational carbon hotels can provide potential future benefits such as greater alignment with environmental regulatory changes and better access to green finance for new projects. Collectively, we believe these benefits should lead to stronger property valuations in the future. In terms of specific cost saving initiatives, ROI will vary by location based on differences between electricity and gas prices in each region.”

Guests will find hotels marketed as low carbon or low carbon ready across IHG’s booking channels to make it clear which ones are energy efficient, have no fossil fuels combusted on-site and are backed by renewable energy.

Each Low Carbon Pioneer hotel will feature sustainable solutions such as high-efficiency heat pumps for heating and hot water generation, as well as fully electric kitchens. Every property will also have an operational sustainability certification recognized by the Global Sustainable Tourism Council, such as Green Key, or a sustainable building certification such as LEED, BREEAM or EDGE. New hotels will have 12 months to certify from when they open.

To track and measure their energy data, Low Carbon Pioneer hotels will use IHG’s Green Engage environmental platform.

“Accelerating change at scale for both IHG and the wider industry also requires broader support from governments ranging from greater access to renewable energy and incentives for owners, to a reduction in the cost of technology that speeds up the industry’s transition to a greener, more resilient future,” said IHG CEO Elie Maalouf. IHG is committed to working with industry bodies and governments to help achieve this, alongside encouraging more owners to adopt carbon reduction practices and become Low Carbon Pioneers.”