According to experts, energy efficiency in hotels should be a top priority. Data reveals that the heating, ventilation and air conditioning (HVAC) system can alone account for 70%-90% of total energy use and is the biggest energy guzzler. If the HVAC system isn’t properly managed, it can contribute significantly to rising energy costs.
From occupancy comfort to improved facility management, integrating IoT in hospitality can provide the level of customer pleasure required to remain competitive while simultaneously helping to cut down on energy expenses. Hence, it becomes even more necessary for hoteliers to consider implementing an energy-management system to reduce these expenses.

How can IoT help in Energy Management?

The energy management systems can not only help the facility managers achieve deep visibility into the property’s operations but also equips them with the ability to set intelligent AI/ML-based controls across multiple assets. There were multiple instances where remote asset monitoring helped the facility managers identify multiple sub-optimal operations in their properties, such as:

  • Assets like HVAC systems running out of operation hours or in vacant spaces for hours, leading to a significant energy wastage
  • Poorly optimized AHUs leading to over-cooling. Over-cooling not only leads to energy wastage but also is a major reason for poor guest comfort

Experts suggest that investing in any new technology or integration involving HVAC is going to provide the largest return on its investment because it’s the second-largest cost in operating a property. Further, IoT-based energy management systems have significantly reduced this return-on-investment time to just 12-14 months.

Is IoT all about Energy Management?

No, Energy management isn’t the only goal that hoteliers are seeking. There are numerous hidden operational challenges as well that only a handful of hoteliers are able to identify, and are constantly seeking optimal solutions to resolve them. These challenges may include:

  • Lack of centralized visibility into operations of assets at multiple distributed properties
  • Lack of visibility into comfort compliances such as temperature, humidity, indoor air quality, etc.
  • Lack of visibility into asset health & predictive maintenance leading to unpredictable breakdowns and lower asset life
  • Lack of visibility into low power factors and current imbalances, leading to bill penalties and safety hazards

How can IoT help resolve these issues?

Integrating IoT in a hotel can prove to be a revolutionary step to counter all the mentioned challenges along with ensuring significant energy savings. IoT based solutions bring a bundle of benefits other than energy efficiency such as:

  • Real-time & centralized visibility of operations across multiple properties
  • Intelligent automation of assets like HVAC systems to ensure comfortable ambience
  • Prevent energy hazards by providing automated alerts of low power factors or current imbalances
  • Provide centralized visibility into asset health, avoiding unforeseen breakdowns and ensuring optimal safety


Energy Consumption

Fig: Benchmark Energy Consumption Per Room Night


Use Case#2 Benchmark temperatures in lobbies across all your properties

Fig: Benchmark temperatures in lobbies across all your properties


Use Case#3 Beyond automation, tickets for asset management

Fig: Beyond automation, tickets for asset management

To sum it up, there’s no doubt saying that the Internet of Things (IoT) definitely has the potential to transform the hospitality industry by increasing operational efficiency, improving consumer experiences, and saving on energy costs.