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Eco-Efficiency icon Eco-Efficiency: KKR Hospitality Portfolio

Hospitality Goes Greener

Key Environmental Performance Area:

  • Greenhouse Gas Emissions (Facilities)

Identified cost saving and energy-reduction projects across its portfolio.

Began several lighting upgrade projects and installation of kitchen exhaust controls coupled with variable frequency drives.

Challenge

The tourism industry accounts for approximately 5 percent of global greenhouse gas (GHG) emissions, and emissions are expected to grow 135 percent by 2035 under a business-as-usual scenario. Additionally, hotels account for 21 percent of all emissions from tourism, primarily from activities such as heating and cooling, cooking, cleaning, and lighting. One way that hotels can minimize the emissions impact of these activities is through energy efficiency initiatives.i

KKR engaged Chartres Lodging Group, LLC (Chartres Lodging) on a portfolio of lodging properties across the United States. Chartres Lodging is an advisory and investment firm focused on the property management, asset management, renovation, and development of lodging assets.

Response

In 2015, Chartres Lodging began working with KKR’s Green Solutions Portfolio (GSP) team to begin evaluating potential energy efficiency projects including lighting upgrades, heating, ventilation, and air conditioning (HVAC) equipment and control solutions, and kitchen exhaust retrofits at a number of properties.

Results

In 2017, Chartres Lodging began several lighting upgrade projects and installation of kitchen exhaust controls coupled with variable frequency drives. In addition to this work, the Chartres Lodging team is in the process of implementing energy efficiency and green building practices during renovation of a number of properties.


i United Nations Environment Programme and World Tourism Organization (2012), Tourism in the Green Economy – Background Report, UNWTO, Madrid.

ii Self-reported portfolio company data is not calculated, reviewed or independently verified by KKR or KKR Capstone. For more information regarding the results methodology for companies evaluationg their own data, please see the methodology section. There is no guarantee that any GSP-related avoided costs or added efficiencies will positively impact the portfolio company’s valuation or performance.

Unless otherwise noted, portfolio company data represents 2016 results, published in October 2017. These case studies may contain forward looking statements including descriptions of planned projects and projected results and savings. These statements are subject to the risk that the projects will not develop as planned or at all or that projected results and savings are not realized.