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Hilton Worldwide - Leading Efforts in Sustainability and Energy Management

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Hilton Worldwide - Leading Efforts in Sustainability and Energy Management

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As a global company with more than 3,900 hotels in 90 countries, sustainability is a critical resource issue and Hilton strives to lead the industry with products, programs and services that......

As a global company with more than 3,900 hotels in 90 countries, sustainability is a critical resource issue and Hilton strives to lead the industry with products, programs and services that deliver great guest experiences while reducing their impact. As the first major multi-brand hospitality company to elevate sustainability to a brand standard, learn how and why Hilton made sustainability a critical performance measure of their business just like quality, service and revenue.

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  • 1. Leading Efforts in Sustainability and Energy ManagementSchneider Electric, Xperience Efficiency 2013 - Washington D.C.Thomas WebsterDirector of Strategic Sourcing - Energy
  • 2. © 2013 Hilton Worldwide Confidential and Proprietary• About Hilton Worldwide• Utility Usage Information• Sustainability with LightStay• Energy Management Services• Q&AAgenda1
  • 3. © 2013 Hilton Worldwide Confidential and ProprietaryHilton WorldwideAs of September 30, 20122Global Stats35305423888
  • 4. © 2013 Hilton Worldwide Confidential and ProprietaryPutting It All TogetherOUR VISIONTo fill the earth with the light and warmth of hospitalityOUR MISSIONWe will be the preeminent global hospitality company –the first choice of guests, team members andowners alike.OUR VALUESHOSPITALITY –We are passionate about delivering exceptional guest experiencesINTEGRITY –We do the right thing, all the timeLEADERSHIP –We are leaders in our industry and in our communitiesTEAMWORK –We are team players in everything we doOWNERSHIP –We are the owners of our actions and decisionsNOW –We operate with a sense of urgency and discipline13
  • 5. © 2013 Hilton Worldwide Confidential and Proprietary 4Utility Usage
  • 6. © 2013 Hilton Worldwide Confidential and ProprietaryGlobal Energy Usage5Commodity Units of Measure 2012 2011Elec Total: MWh 2,953,687 2,984,742Fuels Total: MMBTU 10,235,398 10,588,503Tons of total output 2,484,737 2,549,244Tons of total output 165,531 173,550CCF total consumption 19,037,649 19,729,229
  • 7. © 2013 Hilton Worldwide Confidential and Proprietary 6LightStay / Sustainability / Energy ROIs
  • 8. © 2013 Hilton Worldwide Confidential and ProprietarySustainability at Hilton Worldwide• Proprietary sustainability measurementsystem launched in 2008• Provides ability to track, analyze andreport• Spans 200 utility and operationalmetrics• In use at all properties includingfranchise• Meeting calculator7
  • 9. © 2013 Hilton Worldwide Confidential and Proprietary8-9.3%Waste Output-18.8%Waste Output-23.3%Waste Output-10.9%Carbon Output-8.5%Carbon Output-5.4%Carbon Output-4.0%Water Use-4.5%Water Use-7.5%Water Use200920102011LightStay Commitment and ResultsAcross our portfolio of owned hotels and corporate offices, we’re committed to the following reductions fromour 2008 baseline by 2014:• Reduce our energy consumption by 20%• Reduce our CO2 emissions by 20%• Reduce our waste output by 20%• Reduce our water consumption by 10%Since the introduction ofLightStay, we have savedmore than $174 million inutility costs, and allproperties have been ISO9001 and14001 certified-4.9%Energy Use-7.4%Energy Use-9.7%Energy UseEstimated saving adjusted for weather and occupancy against the 2008 baseline.
  • 10. © 2013 Hilton Worldwide Confidential and Proprietary 9LightStay Social Network
  • 11. © 2013 Hilton Worldwide Confidential and ProprietaryEnergy ROIs10Hotel Name ROI Category Project Name Project CostEBITDAImpact- FullYearCaribe Hilton Energy Relamping in public/boh, chiller retro-fit $249,800 $123,700DT Crystal City Energy VFDs, CO2 Sensors, Lighting $206,804 $114,600Hilton Chicago OHare Energy Energy Management System Upgrades $257,140 $130,000Hilton Miami Airport Energy Water reclaim system for laundry $147,000 $96,169Hilton New Orleans Energy WTC Garage Lighting $112,049 $37,900Hilton New York Energy Natural Gas Boilers Lease Agreement $150,000 $399,000Hilton New York Operating Cost Plating system/Re-therm system $750,000 $375,000Hilton San Francisco Energy FOH, BOH Lighting, VFD Drives $998,685 $404,423Hilton Salt Lake City Energy Ozone Washing Technology $44,300 $39,498Waldorf Astoria Energy Co-generation Plant PPA $250,000 $450,000Hilton Hawaiian Village Other Revenue Water park $3,000,000 $1,000,000
  • 12. © 2013 Hilton Worldwide Confidential and Proprietary• Green Roof• Cogeneration• Fuel Cell• On-siteCompostingNew York HiltonHampton InnSarasota AirportConrad CairoHilton FortLauderdaleOn-site Sustainability Projects11• Solar WaterHeater• Wind Turbines
  • 13. © 2013 Hilton Worldwide Confidential and Proprietary 12LightStay Partnerships12 on EPAs National Top 50 ListHilton Worldwide LightStay SustainabilityAward Winners
  • 14. © 2013 Hilton Worldwide Confidential and Proprietary 26Energy Management Services
  • 15. © 2013 Hilton Worldwide Confidential and ProprietaryHilton Supply Management. – EMS• $105+ Million in managed spend• 183 energy contracts• 62 third-party client sites, hospitality and office buildings• 312 utility accounts on utility bill management• $7.7 Million saved in 2012• Dedicated energy professional14
  • 16. © 2013 Hilton Worldwide Confidential and Proprietary 15Energy Management Services Overview• Deregulated Energy Procurement• RFP Creation• Price Review/Modification/Negotiation• Competitively SourcedCommodity/Delivery• Risk Management• In-Depth Market Intelligence• Regulated Services• Rate Analysis• Optimum Selected/Cost Comparison• Electric Power• Natural Gas• Water• Sewer• Steam• Chilled Water• Utility Bill Payment/Management• Energy Bill Auditing• Reduce Late Fees• Cost/Consumption/Variance Reports• Energy Audits• Demand Management/Response• Federal/State/Utility Rebate• Incentive Submissions• Regional Demand ResponsePrograms• Advise on Energy Efficiency projectsSupply-Side Demand-Side• Resource Advisor• Budgets• Contract trackingReporting• Renewable EnergyCertificates/Green Power• LEED Certification• Global Carbon ManagementSustainability (Optional)
  • 17. © 2013 Hilton Worldwide Confidential and ProprietaryBenefit Examples• A full-service, 600 room hotel in the Northeast saved 9% on natural gasresulting from a strategic sourcing process.• A focused-service, 128 room hotel in the Midwest saved 22% onelectricity resulting from a strategic sourcing process.• A full-service, 1900 room hotel in the West saved $500M on electricityresulting from a competitive bid.• Multi-hotel ownership and management company made well-informedenergy decisions resulting from full visibility of their energy spend andusage through the web-based, data management system - ResourceAdvisor.16
  • 18. © 2013 Hilton Worldwide Confidential and Proprietary 26Q&A