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TEXAS-SIZE
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CHP Business Impact Scenario
Holiday Inn Express Houston
Located in a region highly vulnerable to blackouts, the 77,000-square-foot Holiday Inn Express in the Katy Freeway West submarket faces significant challenges. Utility costs surged nearly 12% from 2021 to 2022, while high-interest rates have pushed cap rates for midscale hotels in this market above 12%.
Implementing Combined Heat and Power (CHP) systems at this 303-room hotel could mitigate blackout risks and potential revenue loss while boosting Net Operating Income (NOI). Consequently, the improved NOI-to-debt-service ratio can secure more favorable financing terms and enhance the property’s overall financial stability.
Key Benefits*
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Reduces energy costs by $110,000, lowering the percentage from 4.2% to 1.0% of revenue based on market performance.
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Improves Net Operating Income (NOI), easing the process of securing financing on better terms and reducing financial risk.
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Ensures 99.997% uptime, even during hurricanes, thereby minimizing revenue loss from power outages.
How Will CHP Impact Your Business Performance?
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CHP Business Impact Scenarios use current energy data to make projections and exclude financing and incentives to estimate the Internal Rate of Return and Ten-Year Value. These figures are preliminary estimates, with more accurate projections to be determined by the Combined Heat & Power Primary Energy Accelerator.
Disclaimer: The CHP Business Impact Scenarios presented on this website are hypothetical and intended as examples of the potential benefits of Combined Heat and Power (CHP) systems. These scenarios are based on publicly available data, primarily from sources such as the U.S. Energy Information Administration (EIA), British Columbia Utilities Commission (BCUC), UK Department for Business, Energy & Industrial Strategy (BEIS), Deutsche Energie-Informationsdienst (EID), Statistics Finland (Tilastokeskus) and Greek Regulatory Authority for Energy (RAE). All findings and calculations have been independently derived without direct input or involvement from the property owners. Actual results may vary based on specific site conditions and operational factors.