Dive Brief:

• Highgate released an environmental, social and governance report said to be one of the first reports of its kind by a major hotel management company. The report details efforts the company has taken since 2019 to reduce the environmental impact of its hotels. 
• Through the efforts, including upping usage of energy-efficient technologies like light-motion sensors and LED lights and installing electric vehicle charging stations at its hotels, Highgate reduced its total greenhouse gas emissions by 21.8% and cut energy use by more than 170,000 megawatt hours between 2019 and 2021. 
• To build on these results, the ESG report outlines new goals to increase Highgate’s number of carbon-neutral hotels, EV charging stations and third-party eco-certified hotels. The report follows other major hotel brands and investment companies that have updated their ESG targets this year, as consumers demand more sustainable travel options and transparent reporting of such. 

Dive Insight:

The goals outlined in Highgate’s ESG report can serve as a roadmap to “help drive hospitality management toward a net-zero future without compromising the guest experience,” Highgate CEO Arash Azarbarzin said in a company release. “We all share an urgent responsibility to reduce our impact on climate change, and this is especially true for the hospitality industry.”

Highgate’s global management portfolio spans 87,500 hotel rooms across various brands, including Marriott, Hilton and Hyatt. The environmental requirements and objectives set forth in the ESG report will impact its entire portfolio, especially as Highgate plans to continue third-party on-site audits of its properties to ensure their compliance with said requirements. 

Currently, Highgate requires its hotels to install lighting motion sensors, LED lighting and intelligent kitchen hood fans at properties with large kitchens, according to the report. The company also requires its properties to use high-efficiency and low-flow fixtures when replacing equipment to conserve water. 

Additionally, properties are required to implement recycling programs in all guest rooms and eliminate single-use plastics throughout — a practice becoming increasingly popular. 

With the goal to increase its number of carbon-neutral hotels, Highgate is evaluating on-site solar and battery storage opportunities across its entire portfolio. It plans to add to its more than 200 hotels currently powered by 100% renewable electricity, made possible by the company’s 2021 investment in Green-e certified renewable energy certificates. 

Alohilani Resort, one of Highgate’s hotels, is the first in Hawaii to operate on 100% renewable electricity. Its 280,000-gallon Oceanarium uses a variable speed control on the main pump to save energy by 30% to 40%.

Highgate also plans to install 300 EV charging stations at its hotels by 2025. At the end of 2021, the company had installed more than 50 EV charging stations at several U.S. hotels. 

This goal comes at a time when major hotel brands, including Choice Hotels, Marriott and Hilton, are installing more EV charging stations at their U.S. locations. 

In April, Choice Hotels released its own ESG report, which outlined its goals to roll out an automated utility tracking dashboard throughout its portfolio and increase women representation in leadership positions. 

Also in April, Chatham Lodging Trust created a supplement to its 2021 Corporate Responsibility Report that highlighted the company's goals to cut greenhouse gas emissions by 50% by 2030 and to be net zero by 2050.