InterContinental CEO Sees up to $200M in Energy Savings at 4,000 Hotels

LONDON—InterContinental Hotels Group PLC, which calls itself the world’s largest hotel company based on its 4,000 global properties, is betting it can save up to $200 million in energy costs beginning this year with a new online system called Green Engage.

The system includes various savings tools from insulating a hotel’s hot water pipes to introducing a recycling program and switching to organic cleaning materials to appointing one of the employees as a green champion.

IHG CEO Andrew Cosslett (top right photo) says early trials show potential savings of up to 25%.

Developed by IHG, the system will be rolled out across the company’s seven brands following final trials which started last week in 650 hotels. Among the brands are Holiday Inn, Crowne Plaza and InterContinental.

Cosslett expects the system will be offered as an option to all of InterContinental’s 4,000 hotels from mid 2009.

The IHG ‘Green Engage’ software works by hotels directly recording data on site. The system automatically compares hotels of a similar nature across the world and lists a series of actions that each hotel can take to reduce waste and the consumption of energy and water.

“This is an important initiative for IHG, our hotel owners and our guests,” says Cosslett.

“Green Engage is a practical tool designed to help improve environmental performance, reduce costs and respond to our guests increasing awareness of this issue.

“Across our estate, we estimate Green Engage has the potential to drive up to $200 million of savings for our hotel owners and significantly reduce energy consumption.”

(Crowne Plaza Hotel, Downtown Washington, D.C., middle right photo)

Thomas J. Corcoran Jr., (top left photo) chairman of the Owners’ Association of InterContinental Hotels Group (IAHI) and owner of a number of hotels taking part in the Green Engage pilot, says, “Green Engage is not only good for the environment, but is also good for business.

“In the current economic climate and with rising energy bills, this tool will help us to identify significant cost savings. At the same time it delivers what our guests want – a greater sense of well-being and less impact on our planet when traveling.”

Corcoran says Green Engage “responds to growing levels of interest from guests who are looking for sustainable hotels that manage their environmental impact. As well as location, price and amenities, guests are now factoring in a hotel’s environmental credentials when booking a place to stay.”

(Holiday Inn Express & Suites, Branson, MO, bottom left photo)

IHG’s Cosslett says that “by utilizing ‘Green Engage’, hotels will now have for the first time, a comprehensive on-line system which gives them the means to:

“Measure their usage of energy and water, waste produced and their carbon emissions. They can then benchmark themselves against other hotels and set demanding, but achievable reduction targets.

“Manage the elements of their hotel that most impact the environment.

“Report on progress to date both internally and to guests and corporate clients.”
In 2008, IHG launched Innovation Hotel, an online example of what a future hotel might look like if it used new green technologies.

“Guests can provide feedback on which of these they feel are important, allowing IHG to consider how they can be implemented as part of the Green Engage program,” adds Cosslett. #

For more information about corporate responsibility at IHG, visit: www.ihg.com/responsibility