WIT Press

An Appraisal Of Incentives For Developing Green Hotel Buildings


Free (open access)

Paper DOI






Page Range

629 - 639




2,883 kb


P. Sloan, W. Legrand, C. S. Kaufmann & M. Belz


In 2007 the UNWTO forecasted a doubling of international arrivals by the mid 2000s [1]. This coincides with ever increasing pressure from across society for the tourism and hospitality industries to present a more sustainable future. Since nearly all tourism arrivals include overnight stays, the first line of attack by the hospitality industry in the fight against excessive use of expensive fossil fuels is making buildings more energy efficient. Depending on the climate, the costs for energy on average represent 30–35% of a hotel’s operating costs [2]. This study aims to identify those incentives for German hoteliers that make building, renovating, or expanding hotels in an energy efficient manner attractive and conversely to uncover reasons that hinder this trend. According to the Building Design & Construction [3] study 65% of hoteliers have already incorporated sustainable concepts into recent hotel building or renovation work citing guests’ expectations as the major motivation factor. The result is comparable to the findings of this study where more than half of the respondents give the same reason for this type of investment. Nearly 90% of the study population regards the construction of a green hotel as more than 11% costlier than a conventional building. This is astonishing because different investigations have shown that the costs of green buildings do not exceed more than 10% of initial construction costs. Compared to conventional buildings the medium cost increase of LEED certified buildings is about 1.6% [4]. The second biggest obstacle is the lack of financial incentives and state subsidies (49.6%). In conclusion, energy efficient and environmentally friendly hotel real estate investments are only of interest to most hoteliers, at the present time, when subsidies are available. Keywords: energy efficient building, German hospitality industry, incentives and hindrances.


energy efficient building, German hospitality industry, incentives and hindrances