Sustainability
BREEAM
BREEAM (Building Research Establishment Environmental Assessment Method) is a globally recognized science-based sustainability assessment and certification framework for real estate. In hospitality, it evaluates a hotel property's environmental, social, and economic performance across its lifecycle, from initial design and construction to ongoing operations and refurbishment.
How it is used
Asset managers and developers use BREEAM ratings—ranging from Pass to Outstanding—to validate ESG compliance, lower utility overhead, and attract institutional capital. High BREEAM scores directly influence asset valuation, reduce debt costs through green financing, and future-proof assets against tightening municipal energy efficiency regulations. Revenue managers leverage certification to win corporate RFP contracts with strict sustainability mandates. Operators apply the framework to track carbon intensity, water consumption, and indoor air quality performance.
Worked example
A 200-key hotel undergoing major capital expenditure target a BREEAM 'Excellent' rating. By installing heat recovery systems, low-flow fixtures, and smart building controls, the property cuts energy usage by 28% and water consumption by 35%. This operational saving yields $140,000 in annual utility cost reductions, lifting NOI and boosting the property's overall capital value at exit.
Common mistake
Treating BREEAM purely as a design-phase exercise rather than an operational standard can cause actual energy performance to fall short of certified targets.