Urbanisation and Sustainable Hotels: A Glimpse into the Future

Every week, around 1.3 million individuals across the globe are drawn to urban environments. While cities undeniably offer benefits such as efficiency, convenience, and connectivity, they also paradoxically contribute significantly to global warming, accounting for approximately three-quarters of the world's greenhouse gas emissions. From my perspective, regardless of a city's sprawling expanse or its density, every urban center and its residents bear the responsibility of actively addressing climate change.

As our cities undergo transformations to accommodate the ever-expanding global population and confront the pressing challenges of climate change, businesses operating within these dynamic urban landscapes must embrace change and formulate innovative solutions. One industry situated at the intersection of urban convenience and sustainability is the hotel sector. In this newsletter, I will explore how the drive for sustainability in our cities could shape the future of hotels.

I believe that urban neighborhoods will supersede city centers as we currently recognise them. These neighborhoods will place emphasis on cultivating pedestrian-friendly areas over greater distances. For those living and working in these locales, essential amenities will be within short, walkable distances. It's conceivable that existing and new hotels might receive financial incentives or even face legal obligations to align with these evolving urban landscapes.

This shift could reduce the prominence of traditional city centers and lessen reliance on guest transportation. These strategies might lead to a notable surge in entertainment led hotel brands that seamlessly blend with their urban and community surroundings, evolving into entertainment and connectivity hubs prioritising dining and leisure experiences competing with the existing mini shopping mall format.

As the significance of sustainability continues to become front and center, I anticipate that hotels will have no choice but to move at a very fast pace towards embracing environmental friendly practices. This involves adopting energy-efficient architectural designs that incorporate advanced insulation, green roofs, increased utilisation of natural light, and widespread integration of new energy management systems and technologies. In the EU in 2021 energy renewables over took fossil fuel use . Furthermore, there is likely to be a substantial increase in efforts focused on conserving water and responsibly procuring local items from local suppliers for hotel rooms and departments, such as food and beverage. Travelers with environmental consciousness may increasingly favour these eco-conscious hotels over those slower to adopt better ecological practices.

In an era of pedestrian-oriented cities and interconnected neighborhoods, hotels could shift their focus towards curating distinctive local experiences for guests. This entails nurturing local relationships and wholeheartedly embracing the principles of the circular economy. Activities like walking tours, showcasing local cuisine, community vegetable gardens , local farm to plate experiences and organising community-centered events will most likely take center stage.

As cities champion cleaner energy and electrification, hotels could incorporate a greater number of EV charging points in their parking areas and establish stronger collaborations with electric taxi services. They will most likely introduce electric shuttle services for guests and no doubt if Elon Musk gets his way hotels may even have electric driverless cars to shuttle guests back and fourth between neighbourhood centres.

Hotels could integrate green spaces into their designs more extensively than they do now , promoting cleaner air and life balance. We could see more Rooftop gardens, indoor plants, courtyard greenery, and use of in-house urban farms that could become part of standard features, enriching the guest experience.

I firmly believe that the trend of renovating and repurposing existing structures will likely overshadow entirely new construction, aligning with future cities sustainability initiatives as more department and retail stores close.

While embracing green technologies might initially lead to cost increases for owners, as sustainable practices become standard, prices are expected to stabilise, providing value for both hoteliers and guests. The reality is that failing to implement sustainable practices in hotels could result in revenue loss, perhaps giving platforms like airbnb the opportunity to grow their market share.

I envision a future where hotels actively participate in city sustainability initiatives, from tree planting campaigns to promoting local artisans as the norm, and where this will lead too is exciting to me. For hotels this would enhance their brand image and appeal, and allow themselves to differentiate from their competitors.

City councils and governments are most likely going to introduce new regulations promoting sustainability, but they might also offer incentives for hotels to adopt and adapt into these new neighbourhoods.

In essence, as urbanisation accelerates its pace and cities worldwide strive to reshape their environmental impact, the hotel industry finds itself at a pivotal crossroads. Embracing sustainable practices is not just a passing trend; it's an essential necessity. Visionary hoteliers have a golden opportunity to align with these urban shifts, harnessing them for business growth and a greener future for all.

What practices are being adopted within your hotels currently? Do you anticipate that hotels will need to transition to even more environmentally friendly approaches in their operational models? As previously discussed in an earlier article, do you believe the concept of the triple bottom line—focusing on People, Planet, and Profit—will emerge as the new framework for managing hotel profit and loss statements?