Ticking the sustainability box means much more than staying in a serviced apartment with no plastic shampoo bottles. Felicity Cousins looks into what operators, suppliers and developers are doing to address sustainability for now and the future
The built environment is responsible for approximately 40 per cent of the UK’s carbon emissions, and the hospitality industry is currently responsible for 1 per cent of all global carbon emissions.
Todd Lundgren principal at CallisonRTKL, a global architecture, urban planning, design and creative services organisation says: “With the proliferation of global climate agreements, science-backed initiatives, and the fact that the construction industry accounts for 40 per cent of the world’s carbon emissions, minimal carbon cuts are no longer enough to make a case for ESG.”
ESG will drive much of the demand for transparency in the sector and there is no doubt the extended stay sector is ramping up its investment in sustainability. At SAN we often report on these sustainability efforts, across the world. For example, in November last year The Ascott Limited unveiled its sustainability framework after achieving the Recognised Standard by the Global Sustainable Tourism Council (GSTC), Situ was awarded a carbon neutral standard after launching its Be More Starfish ESG programme. Carbon neutral aparthotel group Beyond revealed the work behind its Sustainable Wellness room for this year.
Last month we reported The Apartment Network worked with ISAAP to produce a survey to reveal what the sector was doing about sustainability. It found that 57 per cent of serviced accommodation providers have a Sustainability or Environmental Policy in place and more than 60 per cent of respondents said they take part in practices to check their carbon impact. However, only 16 per cent currently measure their carbon footprint. SAN also broke the news that ISAAP has launched a sustainability standard just for the serviced accommodation sector… more on this later.
According to the Sustainable Hospitality Alliance, to align with targets set by the Paris Agreement the industry needs to reduce its carbon emissions by 66 per cent per room by 2030 and 90 per cent per room by 2050 to ensure that the predicted future growth does not lead to a corresponding increase in carbon emissions.
Everyone, from travel managers creating a hotel programme, to business, leisure and bleisure travellers, has a responsibility to look at sustainable options. Many operators and brands base their sustainability programmes on the UN’s Sustainable Development Goals (SDGs). This will be the first of many acronyms… To keep things clear, we’ve created a short Glossary of Sustainable Hospitality terms.
There are 17 SDGs, which are driven by three main pillars: Economic (creating jobs and investing in the local community), Environmental (reducing emissions and aiming for net zero) and Social (creating a responsible ethical business). For corporates, including a few of the UN’s SDGs from each pillar in their ESG policy is a must, and for operators and suppliers, being part of a sustainable chain and creating a positive impact is also key.
We will be looking at the whole process, from the build or renovation of a serviced apartment or aparthotel, to operations, demand, supplier choice, data reporting, and finally sustainable accreditation.
But when did we all become so interested in sustainable accommodation? When did it move from being an ideology, to taking action?
The Global Sustainable Tourism Council (GSTC) sets the global standards for sustainable travel and tourism; and acts as an international body providing assurance for sustainable tourism certification in three key sub sectors of tourism: hotels/accommodations, tour operators/agencies, and destinations.
Randy Durband, CEO, GSTC says there has been ground swell because of awareness and acceptance: “I think it’s because all of society is aware now. There was a tremendous lack of awareness and a lot of denial. Twenty years of denial, and now climate change has punched us in the face; it’s no longer being subtle.”
Claire Whitely, head of environment for the Sustainable Hospitality Alliance says she has noticed the change too. There has been a move towards certification, measurement, and data reporting over the last couple of years.
“There has definitely been a tipping point – we’ve had between 10-14 members for the first 20 years (the Alliance has been around for 30 years). Two years ago we had 13-14 members, but in the last two years we have nearly doubled the number of hotel members.”
This coincided with the Alliance becoming an independent organisation (it used to be part of Business in the Community) and this gave it the opportunity to refocus on what the industry needed, and look at the social aspect of sustainability, not just the environmental side.
Todd Lundgren principal at CallisonRTKL says: “Though the social part of ESG is currently more difficult to quantify, it doesn’t mean that it’s not a concern for hotel stakeholders. According to [property consultants] JLL hotels across the industry are implementing social agendas in response to pressure from employees and guests.”
Research from JLL shows a prevalence of “conscious consumerism” and expectations for the sector to adopt an ethical framework.
Creating these frameworks is where the Sustainable Hospitality Alliance comes in. The Alliance represents over 40,000 hotels, equating to more than seven million rooms, and has just (March 2023) launched its Pathway to Net Positive Hospitality, which provides a practical framework to enable every hotel to work towards net positive impacts, no matter their starting point. While it may be daunting to begin on that pathway, it’s something which can’t be ignored.
The Lamington Group and its room2 carbon neutral aparthotel brand recognised this a while ago. Stuart Godwin, finance director, says: “We are a small family business and we saw that there is no escaping the problems and burying our heads in the sand – things have to happen to make it change, so we made the decision to be fully net zero, even as we grow.”
The Beginning
So what happens when a serviced apartment or aparthotel is being conceived? There are a couple of choices to make here when thinking about the most sustainable approach. Take on a brownfield site and repurpose it to make sure it is energy efficient, or start from scratch and create a new energy efficient building. With 80 per cent of 2050 building stock already existing today, there is a strong argument to start decarbonising what we already have.
Architects work with software called BIM (Building Information Modeling), which has information embedded in it, so designers and architects have all the information they need to make informed decisions about how a building will operate sustainably, and what the building will hold within its very walls.
Studio Moren is a member of Architects Declare, a network of Architectural practices committed to addressing the climate and biodiversity emergency, and is also appointed by the Energy & Environment Alliance (EEA) to provide expertise on sustainable design practices for the interiors and architecture elements for the hospitality industry. Studio Moren will work with the EEA to steer the development of the new BREEAM in Use hospitality standard.
Bryan Oknyansky, AIA Studio Moren says when it comes to whether to build or repurpose, all cases are unique: “In some cases, although the retention of an existing structure preserves its embodied carbon, taking a long-term view on the next 60+ years of the same building might prove that knocking it down and rebuilding a far more future-proof structure will ultimately embody a lower carbon footprint over the life of the structure. This is a view that may sound controversial at first, which tends to make more sense as the design development of a project begins interrogating the energy performance of a building’s external fabric. Treading carefully and taking a balanced view are critical approaches in navigating this indeterminate facet of sustainability.”
Embodied carbon is the carbon dioxide released during the production and transportation of building materials, such as steel, glass, and concrete. Once up and running aparthotels and apartment operators can reduce their embodied carbon by buying sustainable materials from suppliers and engage in practices, which reduces their carbon footprint (passive solar design, energy efficient insulation and BMS, which work intelligently with energy and occupancy).
However, it takes a lot of best practice to offset or reduce the big bill of embodied carbon. The Lamington Group’s Stuart Godwin explains: “We are talking about a whole life asset being net zero – the asset is expected to last 60 years – you have to talk about the embodied carbon, which for room2 Chiswick was 2,500 tonnes of carbon, as opposed to the operational carbon, which for room2 Chiswick is 15 tonnes of carbon. Unless you are detailing the embodied carbon it doesn’t matter how much you have washed the towels – don’t tell me you are saving the planet by not washing my towel, if you haven’t looked at the embodied carbon.”
Another consideration architects, developers and owners have to take into account is how the building will be used. Studio Moren’s Oknyansky explains: “If you measure a hotel with BREEAM in Use next to a house it’s going to look like it’s a rotten asset. It makes sense to have sector-specific BREEAM in Use – so I meet with owners, operators and brands and we are all just putting it on the table to make BREEAM in Use for hospitality, to see what the challenges are across the board.”
Oknyansky is a certified Passive House designer – this is a set of standards to design low energy buildings without compromising occupant comfort. Passive House design can be applied to various building types – for example, a hospital in Germany has been recently Passive House certified – so it’s flexible to different types of buildings as not all buildings are alike.
Oknyansky adds: “A hotel will use water and energy, and create waste, on a different scale than a residential building. Comparing these two building typologies using a single assessment would be like comparing apples to oranges, since the buildings have fundamental differences in how the buildings are used. So it’s beneficial to apply an assessment method that can be tailored to the eccentricities of different types of buildings.”
There are of course many cases where assets are redeveloped or refurbished. IHG, which has several extended stay brands across its worldwide operations, released a white paper in 2021, Transforming Existing Hotels to Net Zero Carbon. The paper has been updated since it was released in line with energy increases and other variables, but the aim of the study was to reach net zero carbon – operational energy. The paper concludes in a call for action. “By developing and implementing zero carbon investment strategies, owners and operators have an opportunity to raise profit margins through energy savings, increase revenue by fulfilling customer preferences, safeguard asset value, improve operational resilience and reduce reputational and regulatory risk, whilst capitalising on government incentives.”
Operations
The sustainable operation of a serviced apartment or aparthotel is not just about removing single-use plastic (although that would also be a good thing – International research by UNESCO indicates that the hotel industry uses 150 million tons of single-use plastic a year).
Operational sustainability dives deep into the very fabric of a building. It seeps into every aspect of how the aparthotel or apartment is run, from the way laundry is washed, to the type of furniture used in the rooms, the lightbulbs in the lamps, the electricity company used, the sustainability credentials of those further down the supply chain…
James Fry, founder Beyond Aparthotels is a details person. Fry’s Beyond Aparthotel model operates as a zero waste, zero carbon stay. Even the paint on the walls is sustainable and toxin free. The laundry is done by Oxwash, a toxin-free laundry company, which uses electric vehicles to collect and deliver the loads. The toilet paper is bamboo (unbleached) and so on.
Fry says: “There is not one single thing you can do but everything is important. It’s very important in terms of the materials in a room and circularity of the material and how much energy you use – insulation makes a massive difference. The energy of the equipment you use is also important – buy a proper fridge and you can save £300 a year. And get your energy from a renewable source onsite, or from a renewable company like Green Energy UK – you can control your operational impact.”
The IHG white paper Transforming Existing Hotels to Net Zero Carbon also concludes that small changes can make significant differences to operations. The paper acknowledges that while it only covers operational carbon emissions, and that there are other considerations to consider, if operators are looking to do anything to start developing zero carbon investment strategies, it should be the following three things “which offer a combination of low or moderate levels of investment and significant carbon savings, whilst creating minimal disruption for guests and on hotel operations during implementation”. 1 Controls & monitoring, 2 LED lighting replacement, 3 Shower head replacement.
Claire Whitely says the Sustainable Hospitality Alliance has started to create partnerships with other organisations to address the supply chain issue: “We’ve expanded to look at other organisations such as MindClick, which offers responsible procurement data.”
The data behind the MindClick products can provide robust information for hotels on how to choose the best sustainable suppliers. The Alliance also joined forces with Beyond Bamboo which specialise in sourcing and advising on business products and services that support the repair and rejuvenation of the planet, making it easier for companies to choose environmentally friendly and ethical options.
The Alliance has several guides on its website to help those starting on the sustainable pathway, including its carbon measurement tool, sustainable construction and design, environmental management for hotels and the case for sustainable hotels.
Beyond’s Fry says there is no excuse now. “It’s really not that hard to find eco-friendly suppliers – you can literally Google ‘the most sustainable shampoo’ and then start a conversation with them but most hotels will just use the same ones for years.”
Demand
In a recent study conducted by MMGY Global, a leading integrated marketing company specialising in travel, tourism and hospitality industry, 32 per cent of guests said they would pay 10 per cent higher rates for a sustainable stay. Booking.com also recently released findings from one of its sustainability reports where it is said 71 per cent of travellers want to make more effort in the next year to travel more sustainably.
There is an argument that extended stays are a better choice for those looking for more environmentally-friendly accommodation and that they are “greener” than hotels because of the lack of shared spaces like lobbies or restaurants. But room2’s Stuart Godwin is quick to refute this. “Some people say staying longer is greener but that’s just a cop out. It’s like saying someone else is taking care of it as they just happen to be staying longer.”
Agent, Checkin London, has noticed corporates are asking more detailed questions about extended stay options, such as: Do you have an Environmental Sustainability policy/strategy/charter in place? Do you have clear Net Zero goals/targets? Does your Environmental Sustainability strategy show near-term and long-term actions the company will take to address climate change and sustainability? Is your Environmental Sustainability strategy aligned to any recognised frameworks or accreditations such as … ISO or BSI Standards 14001, 20121, PAS 2060 Voluntary certification schemes (B Corp, UN Global Compact), Building Industry schemes (BREEAM, Considerate Constructors Scheme), Recognised reporting frameworks (GHG Protocol, Global Reporting Initiative).
Gavin Pereira from Checkin London says: “We have seen an increase in demand from corporate clients for two main reasons: The corporate client is working on a project and their end client is asking them to complete a report. For example, the end client has a “Sustainable Procurement Process” and wants all suppliers in the chain to disclose their ESG standards by completing a questionnaire. Corporates have their own organisational ESG standards and expect their supply chain to adhere to (or demonstrate work in progress towards) Net Zero goals or initiatives that are reducing carbon emissions and working towards ESG best practice frameworks.”
Anshul Mehta is managing partner at Hybrid Resi, a London-based apartment provider offering sustainable hospitality. Apartments are fully electric, use energy efficient white goods, Oxwash laundry service and 100 per cent positive energy.
Mehta says he has seen a lot more people asking for specific sustainability aspects. “This has been happening for the last two to three years. Companies and agencies are asking for sustainable practices. Global warming is such an important subject and if people have that sense they want to give it back to future generations – it is the time to take those steps – embracing sustainable hospitality.”
Data Reporting
To achieve sustainability goals the most important part of the process will be for aparthotels and serviced apartment operators to be able to draw on data and benchmark their progress. This has its complexities as an aparthotel may have an owner, a brand and a management company involved, and if the management company is saying one thing about sustainability and the brand is saying another, it is difficult to align.
The Sustainable Hospitality Alliance works with all those involved to keep these issues to a minimum but Claire Whitely acknowledges there needs to be more collaboration between everyone involved. The head of environment says: “There needs to be some alignment in the industry and how we all work together. We are currently working on our five year strategy, which will come out in mid May – how we can support the industry to start to go beyond net zero or work towards that. We need to help the industry to change its mindset and it’s our job to point people in the right direction and support them on the way.”
Last year the Alliance launched an updated version of its Hotel Carbon Measurement Initiative (HCMI) which offers properties a free method on how to measure emissions. It also has a water measurement toolkit. There are plenty of companies offering similar tools, and even if you aren’t using the Alliance’s free toolkit, taking those measurements are imperative to be able to benchmark.
Hybrid Resi, which has been in operation for just over a year, is taking such measurements. For example Mehta says: “In the month of January we managed to save 4,700 litres of water. We are starting to get the carbon footprint data now.”
It’s the same for ISAAP, which has launched its SP Sustainable Standard this year. By conducting a sustainability survey with The Apartment Network, it started the conversation with its members about how they measure sustainability and what their plans are for the future.
ISAAP’s Stephen Martin says: “Now we have this survey as a benchmark we can gauge how sustainability is moving forward for those companies, whereas this time last year we were not able to do that – so we will have metrics from that data going forward. The results of our survey show that lots of very positive actions are being carried out to reduce environmental impact already but, possibly more importantly, such a large proportion of the serviced accommodation providers who participated in the survey are planning to implement a company policy by the end of the year. This suggests a definite gathering of momentum in awareness and applied activities pertaining to environmental care.”
The Lamington Group’s Stuart Godwin says: “Sustainability now will all come down to data, and accreditation is about scrutiny and improving on that.”
Certification
According to the Global Serviced Apartment Industry Report 2022, many corporates are yet to be convinced of the importance of accreditation programmes. Only 40 per cent see them as only ‘quite important’ whilst 40 per cent are neutral or worse. Although this does not specify sustainable accreditations, just accreditation as a whole.
Certifications can constitute a credible and demonstrable commitment to sustainability, which can be communicated to customers, business partners and investors. Beyond communication, they set standards which can, in turn, create more consistent conventions for the industry and official certifications can also open the door to Green investment. The IFC’s 2019 Green Buildings report estimates a USD$1.5 trillion opportunity for investors to build sustainable hotels and restaurants in emerging markets between now and 2030.
But the problem with sustainable certification in hospitality is that there is so much choice, from well established third party certifications such as LEED (LEED has been around since the turn of the century offering properties a sustainable and measurable way to operate) and there is BREEAM, which became the first sustainable building rating system in the world in 1990, and B Corp, and now a sector-specific standard SP Sustain offered by ISAAP.
There are also around 200 other companies worldwide offering a range of certifications and accreditations, carbon emission measurements and so on, for a broad range of prices and involvement. And it’s this fragmentation of the market, which makes it difficult for operators to choose.
James Fry, Founder of Beyond Aparthotels has not yet been convinced by the process. “We were looking at accreditation about eight years ago. We contacted a few and sat down and went through them and every single one was a form to fill in. You fill it in and then pay them and then get a stamp…and we thought we are not doing this. However, I do like the B Corp accreditation as you have to jump through hoops and you have to keep doing it and keep up with what you have said.”
The Lamington Group’s Stuart Godwin also rates B Corp. “You need third party accreditation otherwise you are marking your own homework. As a consumer if I see a B Corp stamp on a company, I see it as a brand I want to support.”
There is nothing wrong with a bit of competition but in this flooded market how does an aparthotel, serviced apartment company or extended stay hotel group know where to start.
Randy Durband, CEO, GSTC says: “The industry is remiss to let this happen. General managers of hotels all over the world are confused. And people talk about the big players – who are the big players? There are too many of them to be big. They are all suffering from lack of scale.”
One of the issues with many of the certifications on the market is that it involves coaching a property to get the certification. This is what riles Durband. He says it’s rather like an ice skater being marked at the end of a competition by their coach, rather than by a judge.
The GSTC’s CEO says: “Certification is defined by ISO 17021. It is a judgement – not coaching. If you allow those to coach a business to improvement and then give an award at the end – other sectors wouldn’t allow that. Somehow hospitality does.”
The GSTC was created by the UN to set up a board of standards, and create and revise those standards across the world. Its framework applies to “all built accommodations” including serviced apartments, hotels, or hostels.
Claire Whitely head of environment, Sustainable Hospitality Alliance says: “GSTC are the certifiers of certifiers – they set the standards for what a robust certification should be and they cover all of sustainability and make sure the certification recognised by them lives up to it.”
Unity
It’s clear everyone in the sector is onboard to march on with their sustainable targets, to take sustainability seriously and be able to offer reports and metrics to keep improving.
The Alliance’s Claire Whitely says: “Every hotel is so embedded in the community and they have the amazing ability to help that community with employment, human rights etc. If we say we want the industry to get to net positive we have to help them.”
The Lamington Group’s Stuart Godwin says: “The challenge in the industry is it needs to be a commitment – it’s not a trend, it’s something people are working out that needs to be part of a business ethos.”
Beyond’s Fry believes offering a sustainable place to stay appeals to those looking for a lifestyle and wellness choice. To wake up and breathe clean air is what we should all be striving for, whether at home or away.
“For me the drivers have to be ‘what are the buttons to push that will make people change?’ – that is going to be about what benefits the person making the decision – whether it be financial or where to stay – so if there is an economic benefit and a health benefit (today…not a carbon saving, which will benefit them and others in the future), you will drive faster change to the benefit of all.”
And it’s true. The sector has to embrace the sustainable path, and no matter when each operator or group begins on that journey, it will entail collecting data, showing improvement, having a clear target and sticking to those goals. The future success of any sustainability engagement will be about alignment, conversation, collaboration. It will be about unity, keeping it real. Gen Z won’t, and shouldn’t, let us get away with anything less. Now more than ever is the time to act.
