ATLANTA — OCT. 23, 2002 — According to a PKF Consulting study released earlier this year, average occupancy fell 5.2 percentage points to 65.4 percent in 2001, helping fuel the largest decline in revenue for the typical U.S. hotel in more than 60 years. Reporting hotels, on average, reduced their overall operating expenses 5.2 percent in 2001. However, with the sharp occupancy drop and a 9.9-percent average decline in total revenue, the typical property’s operating margin fell 3.4 percentage points to 29.4 percent. Greg Plank, former president of Suburban Lodges of America and current president of Atlanta-based Worldwide Travel Marketing Inc., said hoteliers have done a good job of containing costs, but the competition and economic pressure continue. It is a time when every dollar saved is more important than ever. “According to PKF Consulting, the typical U.S. hotel’s utility expenses increased 7 percent last year — despite a decrease in energy consumption directly linked to an average occupancy drop of 5.2 percentage points. This adds up to significant wasted energy and bottom-line dollars that we can better protect and preserve at the property level,” Plank said. Dollars & Sense Plank, whose company provides operational, technology and marketing consulting services to the global hospitality industry, said Energy Management System (EMS) solutions from Onity Inc. (formerly TESA Entry Systems) offer substantial opportunities to reduce what traditionally have been considered “fixed” costs — energy expenses that today seem to be spiraling out of control. “As former president of Suburban Lodges, I saw the capital crunch that four years of consecutive energy price hikes was placing on our properties, and unfortunately I don’t to see an end to this trend in the near future. As environmental regulations become even more stringent and energy demand continues to outstrip supply, today’s energy crisis is likely to be around for many tomorrows,” Plank said. “Onity’s SensorStat EMS solutions are easy to install and provide proven guestroom energy savings of between 30 percent and 40 percent, without compromising guest comfort,” Plank said. “Rebates in more than 20 states have shortened the payback on these occupancy-based ‘smart’ EMS solutions in many markets. Even without these rebates, payback on these systems can be as short as 18 to 24 months.” Plank said hoteliers should not wait for rebate programs to sprout up. If EMS rebates currently are not offered locally in their respective markets, they likely might not be for years — if ever. But that’s OK, Plank said, because Onity’s SensorStat EMS solutions pay for themselves 10-fold or more over their lifetime. “Hotels without EMS solutions in their guestrooms are missing an easy opportunity for significant cost savings,” Plank said. “It’s not a question of ‘Should I install EMS solutions?’ but rather ‘From whom should I buy them?’ — and Onity is the leader in this technology sector. Even if a hotel can’t secure funding for the smart EMS purchase, a few financing companies offer three- to five-year lease-to-own agreements for EMS solutions that consistently provide savings that far outweigh monthly lease payments.” Proven ROI Onity has invested considerable time and resources to research available rebate programs with utility companies nationwide and has forged relationships to initiate others. One call into Onity can “turn on” properties in select markets to EMS rebates that recently helped a Hilton property in Anaheim, Calif., save $197,000 on the installation of SensorStat DDC (Direct Digital Control) programmable digital thermostats in 1,573 deluxe guestrooms, including 95 suites. “Onity helped our property shorten the payback period on our EMS investment to just two years,” said Dave Hollway, Director of Property Operations for the Hilton Anaheim and Towers. “Onity filled out all of the paperwork that gave us $97,000 from a new state rebate program promoted by the California Hotel & Lodging Association, and we received another $100,000 in rebates directly from the City of Anaheim. “SensorStat DDC is expected to save our property $150,000 a year conservatively — and these savings go directly to our bottom line,” he said. “With $197,000 in rebates and proven energy savings, Onity made it much easier for our management to decide to install the SensorStat DDC.” “Onity and Larry Gomez made it very easy to do business along every step of the way,” Hollway added. ”I conducted an in-house comparative side-by-side analysis of two leading EMS solutions in action, and in the end Onity’s SensorStat DDC delivered the best bang for the buck. Just as important, I cannot speak highly enough of the professional relationships and service and support that the good people at Onity consistently deliver.” Larry Gomez, VP of Sales for Onity’s EMS solutions, said more and more operators are looking for any avenue to cut costs, and the SensorStat DDC digital programmable thermostat is high up on their savings opportunities ‘To Do’ lists. Installed in hundreds of thousands of guestrooms, the SensorStat DDC features an occupancy sensor-based setback tied to a passive infrared motion sensor. “The bottom line is much brighter nowadays at a major Orlando resort with 1,000-plus guestrooms. Onity’s SensorStat DCC with innPULSE® centralized online control is delivering estimated annual energy savings of $115,000,” Gomez said. Laura R. Acuña, Onity Global Product Manager, said it’s critical that hotels not cut corners when researching EMS products and ROI opportunities. While standard programmable thermostats can cut energy consumption, without a tie-in to occupancy-based infrared motion sensors such as the SensorStat DDC offers, there is a greater chance of sacrificing guest comfort when trying to capture energy savings. “Guestroom energy management doesn’t have to be an overwhelming balancing act — as long as you can determine when a room is occupied and have incorporated setback technology that allows recovery to the guest’s desired room temperature in a matter of minutes,” Acuña said. “With SensorStat DDC, hotels know they can capture optimal energy savings around the clock without compromising guest comfort.” “In today’s economically challenging climate, properties are pressured
to take advantage of all cost-saving opportunities, including installing
EMS solutions. On the flip side, hotels cannot afford a rise in room-temperature
related complaints — which can decrease guest satisfaction, loyalty, and
ultimately occupancy rates,” she added.
“EMS’ time has arrived as once so-called ‘fixed’ energy costs are being scrutinized and greatly reduced with solutions providing significant savings that go directly and immediately to the bottom line,” Metivier said. “Our ongoing EMS product line expansion and new global sales and marketing strategy will expedite both our product and business development efforts.” “Today, Onity is a leader, among other things, in EMS solutions for
North American lodging properties. Tomorrow, we will be the leading global
provider of EMS solutions, as well as electronic locking systems, in-room
safes,
“Since the January 2002 acquisition of Senercomm® and its SensorStat EMS solutions, we have found tremendous value and synergies in Onity’s proven service and smart systems,” Gomez said. “We have achieved significant competitive advantages in product development, manufacturing and global sales and support that will help us and our clients thrive in any business climate.” Onity currently is consolidating EMS solutions manufacturing at the company’s world-class R&D and production facilities in Spain and Mexico. Metivier said Onity has invested millions of dollars to purchase and accommodate new EMS production lines and equip a state-of-the-art R&D lab. “Before year’s end, all Onity EMS solutions will be produced side by side with our family of smart systems, using today’s leading-edge automated manufacturing equipment,” Metivier said. “Just as Onity brings together several related smart systems under one company, we are also working hard to fully leverage our vast and expanding human and technical resources. Onity is all about high-level integration: Turning on clients to the promises of progress, and unlocking the potential of partnering the very best minds and technologies.” About Onity
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