Tag Archives: Costs

Hospitality Industry Technology Solutions: California Hotel To Manage Electricity Costs With Innovative Battery Storage System; 30 Percent Savings On Peak Demand Usage Seen

Intercontinental Hotels has run a trial with a 15-kilowatt Stem storage system for the past year, and though Hobbs would not discuss dollar Hotel Utility Costssavings he says he’s seen between a 17 percent and 30 percent improvement in his ability to manage demand. The hotel has 17 Stem systems on order and plans to install two 54-kilowatt battery packs at the Mark Hopkins in San Francisco, which would supply 20 percent of the hotel’s demand.

If a hotel’s energy consumption spikes—say on a hot day when guests all turn on their room air conditioners at once—the utility ratchets up the electricity rate they pay. To avoid these so-called demand charges—which can account for half of a monthly power bill—businesses can participate in programs that cut their bills if they allow their local utility take control of their air conditioners or lighting to reduce electricity use when the grid is overloaded.

Letting hotel guests who pay $300 a night sweat, however, is not an option. So Hobbs has pulled the plug on his utility by storing electricity in lithium-ion battery packs when rates are low for use when demand and prices rise. The battery and sophisticated software was built by a Silicon Valley startup called Stem and is another example of how technological innovation is upending utilities’ century-old stranglehold on power.

Patel says a 54-kilowatt system costs about $100,000, though California state incentives cover about 60 percent of that price. But thanks to a $5 million fund financed by Clean Feet Investors, Stem will offer customers no-money-down installation of battery storage in exchange for monthly fee paid out of the savings on utility bills. Such lease deals unleashed an explosion in residential solar systems and Patel expects to see a similar result in battery storage. Stem has orders for 6 megawatts’ worth of systems and Patel expects that to jump to 15 megawatts over the next year.

For more: http://www.theatlantic.com/technology/archive/2013/11/the-100-000-battery-that-could-help-hotels-save-bundles-of-money/281194/

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Filed under Liability, Maintenance, Management And Ownership, Risk Management, Technology

Hospitality Industry Health Insurance: Restaurant Industry Continues To Assess Options, Costs Of Implementing “2010 Affordable Care Act” Next January; #1 Issue For Small Businesses

“…restaurants employ roughly 10 percent of the workforce both in Georgia and nationwide. While many dining establishments have fewer than health insurance national50 employees and therefore won’t be subject to the mandate, others will be affected…the cost of health insurance has been the No. 1 issue facing small businesses, according to surveys by the National Federation of Independent Business…(margins) are so thin, there’s only X amount of dollars…(if health insurance was affordable) you’d have everybody insured.”

Steve Simon is co-founder of Fifth Group Restaurants, which operates seven restaurants and other businesses in the Atlanta area, employing more than 500 people. Currently, Fifth Group offers health insurance to its managers only.

But under the 2010 Affordable Care Act, when it is fully implemented next January, a business with 50 or more full-time workers must offer all employees working at least 30 hours a week a health plan that’s considered “affordable.” If it doesn’t, the business must pay a penalty.

Despite all the concern in the industry, some restaurant operators say the law’s impact may not be as great as originally feared. They cite the fact that to count as affordable coverage under the law –– thus escaping the penalty –– a business can charge workers up to 9.5 percent of their annual wages to pay for insurance. So if a worker is making $30,000 a year, the business can set his or her share of the premium at $2,850 annually, or $237.50 per month.

The restaurant owners say many workers will avoid such premiums by going without coverage, choosing instead to pay the ACA’s penalty of $95 for uninsured individuals.

For more:  http://chronicle.augusta.com/news/health/2013-06-24/restaurant-industry-nervously-eyes-aca-s-changes-insurance-rules?v=1372103979

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Filed under Health, Insurance, Labor Issues, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: Hotels Warned By Federal Trade Commission (FTC) For "Deceptively Low" Estimates Of Room Costs; Undisclosed "Resort Fees" May Violate Law

 “One common complaint consumers raised involved mandatory fees hotels charge for amenities such as newspapers, use of onsite exercise or pool facilities, or internet access, sometimes referred to as ‘resort fees.’  FTCThese mandatory fees can be as high as $30 per night, a sum that could certainly affect consumer purchasing decisions.”

The Federal Trade Commission has warned 22 hotel operators that their online reservation sites may violate the law by providing a deceptively low estimate of what consumers can expect to pay for their hotel rooms.

The warning letters cited consumer complaints that surfaced at a recent conference the FTC held on “drip pricing,” a pricing technique in which firms advertise only part of a product’s price and reveal other charges as the customer goes through the buying process.   The warning letters also state that consumers often did not know they would be required to pay resort fees in addition to the quoted hotel rate.

“Consumers are entitled to know in advance the total cost of their hotel stays,” said Federal Trade Commission Chairman Jon Leibowitz.  “So-called ‘drip pricing’ charges, sometimes portrayed as ‘convenience’ or ‘service’ fees, are anything but convenient, and businesses that hide them are doing a huge disservice to American consumers.”

The letters strongly encourage the companies to review their websites and ensure that their ads do not misrepresent the total price consumers can expect to pay.

For more:  http://www.ftc.gov/opa/2012/11/hotelresort.shtm

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Filed under Guest Issues, Liability, Management And Ownership, Risk Management