As sustainability continues to top the agenda at hotels around the world, RBH Hospitality Management’s Managing Director, Susan Bland, discusses the discrepancies between sustainable-focused demands and expectations of hotel guests, and hotel investors.

What are the biggest push backs from hotel guests when it comes to sustainable measures?

I don’t think there are any major pushbacks. Most guests are happy to reuse their towels if they are staying for two or three days, however, housekeeping staff still insist on replacing them. Many guests today are also happy to not have their room serviced daily but as hoteliers we don’t make it very easy for them to tell us that and having door hangers for ‘Do Not Disturb’ is only a small part of the answer.

Guests are generally happy to have bulk amenities in their bathrooms, recycling bins in their bedrooms, glass bottles instead of plastic, and paper/bamboo disposable items rather than single use plastics. They are happy with the water flow in most showers and taps even if aerators are fitted and are generally looking for locally sourced and organic / plant-based options on menus. There are always exceptions, but the vast majority of our guests are embracing these sustainable measures. It is, of course, imperative to ensure that the sustainable alternative does not detract from the guest experience e.g. if low flow showers led to a poor shower experience, or the first paper straws that were introduced which turned to mush, but most of the later introductions in fact enhance the guest experience.

The biggest push back would probably be to do with air conditioning / room temperature, as guests generally do prefer to find their room at an acceptable temperature when they walk into it, rather than having to change it themselves. This leads to staff leaving extra key cards in the rooms to ensure the aircon is switched on and running in advance of the guest arrival, however, sometimes this can be for hours. The biggest challenge in this area involves changing long established ways of working and training procedures to encompass the changes and ensure all the team are fully embracing the new solutions and the reasons behind them.

What do you perceive to be the top sustainability focuses that hotel guests are prioritising/wanting to see?

The removal of single use plastics across the full guest journey is now expected by most. This includes bathroom amenities, straws, toothbrushes and take away containers and cutlery. Having a green accreditation in place is also now becoming more widely expected. Mostly, I think guests want to know that we’re doing something about environmental matters, but don’t want it to affect their stay.

How does this differ from the back end of the business? What are investors pushing for from an ESG perspective?

Investors are predominantly interested in future-proofing their asset value and generally accept that introducing sustainability measures is a necessity in doing this. However, they are mostly interested in quick wins with a short-term payback rather than the more costly changes which will make the biggest difference but take a long time to get the ROI e.g. electrification, changing heating systems etc. Profit margins have been eroded over recent years due to the pandemic initially, and then latterly due to increasing costs in the business, so cash flows are tight and spending large amounts for the longer-term benefit is much lower down the priority list than protecting current profitability.

What are the biggest challenges RBH faces when educating investors/owners in the importance of sustainability?

The biggest challenge we face at RBH is gaining consistency in the sustainable measures we are pushing to roll out. Some owners, generally the larger investment funds, are keen to explore initiatives that will cost more initially but will protect asset value for the longer term. While they don’t want to do this at the expense of current profitability, they are certainly more keen to explore options as they have stronger cashflow situations than some of the smaller owners.

For the smaller owner, the challenge is entirely down to the struggles with current profitability and therefore lack of cashflow to be able to invest in these longer-term solutions.

How do you balance the differing demands of the consumer and investor/owner?  

The consumer is focused on their personal experience and any initiatives that enhance that are embraced whereas any that detract from it are not acceptable. They are looking for value for money from their stay and as average daily rates have increased, as a direct result of increasing costs, their expectations are becoming much higher.

The corporate consumer, however, is now looking at green credentials far more as their own companies are only able to book hotels which can demonstrate what they are doing from an ESG perspective.

The investor is entirely focused on profitability and asset value. They are looking for a return on their investment.

The balance is managed by having comprehensive sustainability plans in place and chipping away at them one step at a time and as cash flow allows.