Hotels average 25–75 kWh per room per month depending on property type and amenities

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Hotels & Hospitality Energy Use Profile

Hotels & Hospitality operations typically use 500,000–10,000,000 kWh/year (depending on property size and type) per month. HVAC — the dominant cost in nearly all hotel types accounts for the majority of consumption. Summer (resort/leisure) or winter (urban business travel) peaks depending on market

Full-service hotels with pools, fitness centers, and kitchens use significantly more than select-service

Natural gas: Laundry, domestic hot water, kitchen — significant gas cost in full-service properties

Most Hotels & Hospitality accounts are served under a Large commercial or hospitality-specific rate schedules for larger properties. Demand charges apply in most commercial markets and can represent 30–50% of total electricity cost, independent of the supply rate.

Common Energy Challenges for Hotels & Hospitality Operators

Flag brand properties may have procurement restrictions or mandates from franchisor

Seasonal occupancy makes load profiling more complex

HVAC represents ~35% of hotel energy costs — the largest single category

Load factor of Varies significantly by occupancy rate; full-service properties have higher load factor means Hotels & Hospitality facilities have consistent demand profiles. High load factor accounts get more competitive supplier pricing because suppliers can model them predictably.

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How We Procure Energy for Hotels & Hospitality Accounts

Our process for Hotels & Hospitality clients:

  1. Load analysis: We pull 12–24 months of interval data and build your demand profile. For Hotels & Hospitality accounts, we pay particular attention to peak demand events driven by Check-in hours (4–7pm) with simultaneous HVAC, lighting, kitchen, and elevator use.
  2. Competitive bid: We submit your load profile to 30+ suppliers simultaneously. They compete on the same data. You get multiple offers with our plain-English translation.
  3. Contract review: We read every contract before recommending it — checking demand charge treatment, auto-renewal terms, ETF structure, and any pass-through mechanisms.
  4. Execution and monitoring: We handle contract paperwork and flag your renewal window 6–9 months before expiration.

Flag franchise agreements may affect supplier choice — independent properties have more flexibility

Contract Strategy for Hotels & Hospitality Energy Buyers

For Hotels & Hospitality accounts, we typically evaluate fixed-rate contracts (12–36 months) for budget certainty. For larger or more sophisticated accounts, indexed structures that track wholesale markets may offer better economics if managed actively.

Multi-site Hotels & Hospitality portfolios can aggregate load across locations for more supplier competition and often better rates per site than single-location procurement.

Hotels & Hospitality Energy by State

We've built resources for Hotels & Hospitality energy procurement in each major deregulated state:

Frequently Asked Questions

What do Hotels & Hospitality businesses typically pay for electricity?

Hotels & Hospitality facilities typically use 500,000–10,000,000 kWh/year (depending on property size and type) per month. Rates vary by state, market conditions, and contract structure — generally 6–12 cents/kWh all-in in competitive markets.

What drives electricity costs for Hotels & Hospitality operations?

HVAC — the dominant cost in nearly all hotel types is the primary electricity consumer in most Hotels & Hospitality facilities. Flag brand properties may have procurement restrictions or mandates from franchisor

What contract type is best for Hotels & Hospitality energy buyers?

Flag franchise agreements may affect supplier choice — independent properties have more flexibility Most Hotels & Hospitality operators benefit from fixed-rate contracts for budget stability.

How do demand charges affect Hotels & Hospitality facilities?

Demand charges — based on peak 15-minute interval demand — can represent 30–50% of a Hotels & Hospitality electricity bill. Peak demand is typically driven by Check-in hours (4–7pm) with simultaneous HVAC, lighting, kitchen, and elevator use.

Can a broker help with multi-state Hotels & Hospitality energy procurement?

Yes. We aggregate load across multiple locations and run unified quote processes. Multi-site procurement creates more supplier competition and often produces better rates than procuring each location separately.