Green projects make their way further into mainstream

RANCHO MIRAGE— The issue of sustainable or ‘green’ hotels has become an increasingly popular topic for discussion in the hospitality industry, but whether or not the concept will be a larger part of future developments, particularly those of the mixed use variety, still remains unclear. During the recent HOTEL BUSINESS® Mixed Use Roundtable, participants weighed in on the future of environmentally friendly projects. “There are only four LEED certified hotels in the U.S. There are a lot of people [developers]who are looking at it and there is a perception that there is part of the demographic that would rather have green, need green and will give their business to green businesses before others. To date, the real question has been one of cost. It has been the reality or the perception that this isn’t a matter of 10% extra cost, it’s a matter of doubling or tripling costs. But that apparently is changing,” said James Butler, Jr., chairman, global hospitality group, Jeffer, Mangels, Butler & Marmaro, LLP. Ralph Newman, Jr., COO, WTS International, which is involved in developing and operating spas, isn’t totally convinced that the time is right for the concept, at least domestically. “Just from the spa perspective, I know the recent study that was done from ISpa [showed]that the green concept seems to have a pretty good market appeal in Canada, but not so much in the U.S. In other words, if it’s a green spa or environmentally conscientious, it doesn’t have much appeal. It’s not why people would go there. I don’t know if the same concept carries over for [hotel]properties as well,” he said. “It sounds good, it’s what we should be doing, but I’m not sure if it’s something that you can market.” Others participants, however, seem to have bought into the concept more completely and are convinced green projects are the way of the future. “The world is getting to be a greener place. Years from now, people will say ‘why did we put up with this,’ and the capital is going to insist on it. The consumer is getting greener and greener. We’re going to stand on sustainability. It’s so differentiating. They [industry experts]will very soon dismiss it as trendy,” said Marty Collins, president/CEO of Gatehouse Capital Corporation. Jonathan Roth, principal, Canyon Capital Realty Advisors, pointed out there is some ambiguity when it comes to building green, but also believes that going forward, it is the way to build. “From my perspective, it’s an ever-evolving standard. To what standard do you build? Obviously at the end of he day you have to be economically viable. But I do think if you’re marketing a product, if the consumer has a choice, in today’s world the green will sell,” he said. Meanwhile, Tom D’Alesandro IV, senior vp, General Growth Properties, Inc., whose firm developed a project in Texas called The Woodlands, which was built a number of years ago but incorporates many modern concepts noted, “The Woodlands was way ahead of its time. One-third of the land was built in the open space for the preservation of forests and streams,” he noted. The Woodlands project notwithstanding, he acknowledged that there needs to be a tangible benefit for green products and consumers. “People will buy into it when the benefit is clear…If it’s just a secret ingredient that no one can see, it doesn’t mean as much. People’s knowledge will increase but we need to demonstrate the benefit,” he said.