Did you know hotels spend an average of $2,196 on average each year per room? According to Energy STAR, this accounts for approximately 6% of operating costs for the average hotel. Upgrading to energy efficient equipment and systems in your hotel can significantly reduce operating costs and increase profits. Yet, many hotels simply don’t have the budget to make these upgrades. CPACE financing is a low-cost, long-term option to fund energy efficient upgrades in your hotel.
CPACE Financing: Low-Cost Funding for Up To 100% of Energy Efficiency Upgrades
If you’ve been putting off upgrades and retrofits for energy efficiency because of budget concerns, we have good news. CPACE financing can help fund these projects so you can start saving on energy costs. In the process, you may even become more attractive to guests, as consumers are increasingly environmentally conscious and prefer brands that are as well.
PACE stands for property assessed clean energy. These loans are a low cost-option for funding projects that enhance energy efficiency. Many states have PACE legislature to provide this affordable funding option to commercial building owners.
PACE financing offers many benefits, including:
- Financing for up to 25% of property value
- No personal guarantees
- Up to 30-year fixed rates
- Loans transferable with sale of the property
- No operating covenants
- Low interest rates
- Annual or semi-annual payments through voluntary assessments
Hotels can frequently qualify for these advantageous loans, particularly when looking at ways to reduce energy costs. In most cases, your project simply needs to meet some basic energy efficiency requirements and you must also prove that the savings accomplished by the project will exceed the costs of the loan. Many upgrades meet these parameters, so hoteliers should absolutely consider PACE loans for energy efficient upgrades for their properties.
Energy Efficiency Upgrades to Consider for Your Hotel
When it comes to energy consumption in hotels, there are many projects to consider for your property. Lights and HVAC systems are common culprits of excessive energy use, so these are typically some of the first systems hoteliers target for energy efficiency. Fortunately, CPACE financing can often cover up to 100% of the costs for these projects.
It’s a common misconception in the hospitality industry that energy efficient upgrades interfere with guest comfort and convenience, but there are actually many changes you can do that guests may not notice or even enhance the experience. For instance, retrofitting your building’s lighting systems with LEDs not only can significantly reduce energy consumption, these lights are also often brighter and more comfortable for guests’ eyes. Another example of an energy efficient hotel project that actually can improve guest experience is upgrading to more efficient HVAC systems. Newer, energy efficient HVAC systems not only use less energy, they often work much better than older systems, making it easy for your guests to get the perfect temperature in their rooms. Therefore, energy efficiency is beneficial for your hotel in many ways.
Direct PACE Financing from Stonehill PACE
When you need creative financing solutions for PACE programs, our team at Stonehill PACE is here for you. We are a direct PACE lender offering financing options for all commercial asset classes. Whether you’re looking for low-cost financing to make upgrades in hotels, industrial facilities, or retail centers, our team works with you to find options that suit your needs. Call us now at (678) 823-9313 to schedule a consultation with our team.