Stef Driessen: 'Investing in sustainability pays off. Especially now.'

ABN AMRO recently presented its 'Green and hospitable' report. In it, the bank predicted that the number of hotel stays will return to pre-corona levels sooner than expected. However, costs for the industry are increasing. "Investing in sustainability therefore pays off like never before," argues Stef Driessen, sector banker Leisure at ABN AMRO. "Your appeal increases and the costs decrease."

"When I ask ChatGTP what will be the best presenting hotel type in 2040, the answer is 'the sustainable oasis'. And right she is, because sustainability and profitability go hand in hand. Hoteliers see that too. We asked them to what extent they can pass on increased costs. Of the 112 respondents, 54 per cent said they could only pass on a small part of the increased costs in hotel room rates, 40 per cent spoke of a large part or completely. This, according to respondents, mainly involves higher energy prices, higher labour costs and higher food prices. Asked what they do about this next, some 56 per cent say they would like to save on energy and gas consumption.
Another reason is that more and more companies are giving their employees a CO2 travel budget in addition to a monetary travel budget. In practice, this means that halfway through the year, for example, there are still 5,000 euros of travel budget left, but the CO2 allowances have already been used up. Hotels therefore have every interest in qualifying as low-carbon."

"But that is changing rapidly. Recent research by the NBTC (July 2023) shows that sustainability is important enough for more than 44 per cent of Dutch people to take it into account during their trip. This group considers it important to know prior to booking whether waste is collected separately, whether there is public transport and bicycle transport, and whether there are energy savings and renewable energy. Moreover, 54% of users of Booking.com that they filter for sustainability, now that opportunity is there."

"Sofitel Legend The Grand Amsterdam shows that it is possible to be an eco-friendly hotel in a monumental building, without having to give up monumental status or luxury. The monumental 1578 property has been officially certified by EarthCheck, the certification and advisory group for sustainable destinations and travel organisations. The very luxurious hotel's investments include double-glazing, an upgrade of the HVAC system, a heat pump system, a heat recovery system, sustainable water boilers and sustainable insulation of the roof. Pretty special."

"Sustainability and profitability go hand in hand these days. This is another reason banks want to encourage companies to initiate the transition to more sustainable operations. Companies that achieve measurable results on a specific sustainability target are eligible for a 0.30 per cent interest rate discount on their financing if they meet their annual target. If that is not met, however, an interest rate surcharge of 0.15 per cent applies. That, in a nutshell, is ABN AMRO's new Transition Loan."

"More and more is possible without large investments. For example, you can link the existing building management system to Jenny, a digital operator. This sees deviations and errors in the climate installation and optimises based on comfort, efficiency and the technical condition of the installation.
And what about waste? As much as half of the breakfast buffet disappears into the dustbin.

Intelligent cameras from Orbisk help professional kitchens get a grip on that unprecedented food waste. Halving waste is achievable. Furthermore, investing in modern refrigeration systems can be beneficial. There are pans that halve cooking gas consumption, while also reducing cooking time, CO2 emissions and kitchen temperature. Water pressure can also be reduced without major investment, from, say, 25 litres per minute to 10. That will give hotels a lower gas bill of 70,000 euros on average." 

"True. The Net Positive Employee Barometer, compiled under the leadership of former Unilever boss Paul Polman in June 2023, shows that as many as 50 percent even quit their jobs if the employer is not ambitious enough on climate. Of Generation Z - people born after 1997 - more than 45 per cent have already 'cancelled' a company. The same survey shows that employees' wage demands at companies without tight sustainability targets are 10 to 20 per cent higher compared to those that do."

"Yes. Saving on energy and gas consumption is a high priority sector-wide. Fortunately, there is increasing investment in employee awareness. As many as 66 per cent of hoteliers are betting on this. A good example shows hotel chain Accor. This chain offers tailor-made training for some of its 300,000 employees worldwide. It collaborates with School of Change for this purpose. A tip is to join The Green Hotel Club as a hotel. This foundation promotes knowledge sharing and cooperation on sustainability at hotels."

"I see family businesses in particular making great strides now. Hotel owners there are really doing their best to transfer their business to the next generation as sustainably as possible. Often, these companies own both the hotel operation and the hotel property and therefore no consultation with a landlord is needed. By 21 per cent of hoteliers, this is seen as a barrier to sustainability."

"At www.duurzameinvesteringstool.nl, any hotelier can quickly gain insight into sustainability options. The tool provides insight into payback periods and who usually foots the bill for a particular investment: the operator or the landlord. The latter also has every interest in concrete sustainability targets. Cushman & Wakefield even calculates a premium of 4.5% to 7.3% for hotel property owners who have ambitious sustainability targets."