Hotels that achieve certified sustainability requirements on average outperform in terms of rates and revenue per available room those that do not, according to a recent study from Cornell University.
The study compared 93 U.S. hotels certified by the U.S. Green Building Council's Leadership in Energy and Environmental Design ratings system—which takes into consideration such factors as water efficiency, energy use and indoor environmental quality—against 514 comparable hotels without the certification. Hotels in the study largely were upscale or luxury properties in urban and suburban locations.
Prior to certification, the LEED-certified hotels had an average daily rate that was $10 higher than the noncertified hotels. In the two years following the certification, that average premium jumped to $20, according to the study.
Occupancy trended lower at LEED-certified hotels, though the study noted that figure was skewed by new hotels in the sample or those that had been undergoing renovation related to the certification.
"Considering those challenges, it is remarkable that LEED-certified hotels match competitors' occupancy levels within a year of certification," the study reported. "The LEED hotels quickly made up the occupancy deficit recorded in the year prior to certification, and they outperformed competitors for two years following certification."
The report indicated such research, including future research over a longer performance period, is necessary as there currently is little "empirical evidence demonstrating a link between LEED certification and performance." The number of hotels earning LEED certification annually has declined since peaking in 2010 which the study attributes to the benefits of the certification not being clear to hotels.