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HISTORIC ROOTS
ENERGY
MODERN
CHP Business Impact Scenario
Sonesta ES Montgomery
The 92-room Sonesta ES faces several challenges, including a labor shortage in the hospitality sector, driving up labor costs. Montgomery’s vulnerability to hurricanes is a constant threat, leading to potential power outages and revenue loss. To navigate these issues, hotel owners must focus not just on increasing revenue but on reducing costs to enhance profit margins.
Implementing Combined Heat and Power (CHP) systems could provide substantial cost savings for the 62,000 square-foot hotel, helping to maintain profit margins despite rising labor expenses. Furthermore, CHP systems offer resilience against power outages caused by tropical storms, ensuring continued operations and stability.
Key Benefits*
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Energy Cost Reduction: CHP technology reduces energy costs by over 75%, translating to nearly $152,000 added to the margin.
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Ten Year Value: Total value impact is $2.7 million, including a $1.1 million increase in asset value.
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High Reliability: CHP systems offer 99.997% uptime, ensuring reliable performance even during major hurricanes.
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.