OUR FINANCIAL IMPACT
We believe incorporating sustainability into our business strategy is key to capturing value. Our EarthView platform not only drives lower operating expenses and higher real estate value, but is also a framework for identifying efficiencies in current practices, areas for hospitality innovation, and future market trends.
To date, EarthView’s initiatives have created
$100M in portfolio value attributed to EarthView as of 2019
1.7 YEAR average payback period for our efficiency investments
$14M in EarthView savings since inception
+60 BPS impact to EBITDA margin
EarthView has informed the way we approach business and is now wholly integrated into Hersha’s business strategy. Having a strategy informed by sustainability – in particular through operating efficient, green buildings that are centered on community – leads to hotels with higher margins, stronger net operating income (NOI), and increased long-term valuations. Every $1 of savings from reduced energy and water usage, and lower waste production flows directly to the bottom line.
Hersha is an active participant of the following
Matthew Lobach, Director of Sustainability at Hersha discusses partnerships to further the Sustainable Development Goals:
DRIVING VALUABLE, INNOVATIVE GUEST EXPERIENCE
EarthView is one of the industry’s most established hotel sustainability platforms. As leaders in this field, we are constantly searching for and capitalizing on innovative opportunities that have positive externalities, and create operational savings, long-term value, and enhanced guest experiences.
ENHANCING GUEST EXPERIENCE
Guests are increasingly seeking more from their travel experiences – and we are well poised to capture this growing interest through our approach to sustainable hospitality. Hotels that minimize their environmental footprints, provide responsibly sourced products, engage with local communities, and empower their associates are ones that demonstrate a holistic approach to hospitality.
This holistic approach extends to guests as well, providing memorable amenities and unique offerings to elevate the quality of their stays. In 2019, our portfolio-wide composite of guest satisfaction scores was 8.4 out of 10 points.
Individual guests are not the only ones seeking more sustainable travel options – corporate and group businesses are as well. Through EarthView, we are able to satisfy this need, and eventually expectation, by providing green meeting options.