Sustainability
Energy use intensity
Also written: EUI
Energy Use Intensity measures a property's annual total energy consumption relative to its gross floor area. Expressed as energy used per square foot or square meter per year, it allows operators to benchmark energy performance across hotels regardless of physical building size.
Formula
EUI = Total Annual Energy Consumption (kBtu or kWh) / Total Gross Floor Area (sq ft or sq m)
How it is used
Asset managers and engineering directors use EUI to evaluate building efficiency, track sustainability initiatives, and prioritize capital expenditure for HVAC or lighting retrofits. Comparing EUI against brand standards or local benchmarking laws identifies underperforming properties. In regions with strict carbon emissions regulations or building performance standards, high-EUI hotels face financial penalties. Revenue managers and finance teams monitor EUI alongside occupancy fluctuations to separate operational energy demands from baseline, fixed building energy loads.
Worked example
A 150,000-square-foot full-service hotel consumes 4,500,000 kWh of electricity and 60,000 therms of natural gas annually. Converting both to thousand British thermal units (kBtu) yields 15,354,000 kBtu from electricity (4,500,000 × 3.412) and 6,000,000 kBtu from gas (60,000 × 100), totaling 21,354,000 kBtu. Dividing by 150,000 square feet gives an EUI of 142.36 kBtu/sq ft/year.
Common mistake
Failing to weather-normalize EUI figures leads to incorrect conclusions, as unadjusted data reflects seasonal climate extremes rather than actual operational efficiency improvements.