Sustainable hospitality: green is the new gold
How sustainable hospitality is transforming profits and perceptions…
Sustainability is redefining the rules of the hospitality industry. What was once a niche concern is now a powerful force driving reputation and revenue. Indeed, hotels are discovering that green initiatives are not simply about meeting environmental standards—they’re about boosting the bottom line.
Charles Blocker, Founder & CEO of IC Partners Limited, a private investment and advisory firm focused on real estate and hospitality, sees this shift as a smart fusion of principle and profit. And as the industry adapts, he sees sustainability becoming the new standard for success.
We’ve all seen those little signs asking us to reuse our towels, but Blocker’s approach is far more comprehensive—and lucrative.
"In our hotels, we’ve installed sensor systems in all guest rooms that automatically cut power and stabilise the room temperature at a steady 25°C when unoccupied," he explains.
The result? A significant cut in energy costs.
"Our on-site bottling plants, meanwhile, eliminate the need for plastic and reduce the logistical nightmare of transporting water," Blocker adds. "And with our highly efficient Variable Volume (VV) systems, we’ve cut energy costs by more than 30%."
The kicker is that these initiatives don’t simply save energy; they boost the bottom line.
"Our profits have increased by at least 7 to 8%," says Blocker.
That’s a decent return, and it’s not just the balance sheet that’s benefitting.
Employees are now more mindful of waste, whether it’s paper or food, further embedding sustainability into the company’s DNA, he adds.
“Young staff, with an average age of 25, really connect with this approach, and that energy is contagious”
The power of green branding
In an industry where everyone’s talking about going green, standing out requires more than talk. Blocker believes authenticity is key, and it shows in the results.
"At TRIBE, one of our major brands under Accor, guests can see our sustainability efforts without feeling pressured or pestered," Blocker says.
"It’s subtle but effective—young staff, with an average age of 25, really connect with this approach, and that energy is contagious."
Then there’s Shinta Mani, an ultra-luxury brand that takes sustainability even further.
"Sustainability is woven into the very fabric of Shinta Mani, from the design of the properties to the training and development of staff," Blocker explains.
With partners like Bill Bensley, a globally recognised designer known for his vocal stance on sustainability, it’s clear this isn’t just lip service—it’s a core part of the brand’s identity.
The payback problem
Of course, going green isn’t without its challenges.
The upfront costs can be intimidating, and changing established habits takes time and effort.
"Generally, the payback period for any capital outlay is less than four years, and the financial and environmental benefits far outweigh the costs," Blocker notes.
But the real hurdle? Changing behaviour.
"The key is top-down commitment and a thoughtful management approach. Education plays a crucial role, especially for seasoned professionals who may be set in their ways."
In other words, it’s about creating a culture of sustainability that permeates every level of the organisation.
Green or bust
Today, securing financing for new projects often hinges on sustainability.
"A green project, with at least a World Bank EDGE certification, is now essential for securing both equity and bank financing," Blocker emphasises. Without this commitment, attracting investment is becoming more difficult.
Aligning the values of the owners, hotel, and brand with sustainability makes it easier to attract and retain employees," Blocker says. And this trend is only set to grow.
The future is now
Looking ahead, Blocker sees a future where sustainability and technology are inextricably linked, driving innovation and efficiency in the hospitality industry.
"We could see tax credits and other financial incentives from local and federal governments for those committed to using technology—whether that’s in building systems, MEP, or simple software for waste management and utility use," he predicts.
The message is clear: if you’re not on board with sustainable practices and technological innovation, you risk being left behind. The future of hospitality is about offering luxury in a way that’s sustainable for the planet and for business.