Why sustainability makes financial sense for hotels (no, really)
Words by Liam Aran Barnes | Eco Stay Awards Co-founder
“Green is too expensive”—or is it?
At the GSTC Conference in Singapore, leaders challenged this long-held misconception, revealing how sustainability not only cuts costs but also attracts premium-paying guests and secures long-term profitability.
The message was clear: sustainability isn’t a luxury—it’s an essential strategy for business survival.
Cutting costs where it counts
Hotel kitchens have long been a quiet drain on profitability, with food waste at the centre of the problem.
Marc Zornes, founder of Winnow, has been working with hotels to tackle this inefficiency head-on, showing that smarter waste management can deliver measurable financial returns.
“Our clients see savings of 1–8% on food costs when they adopt waste-reduction technologies,” Zornes explained. “The ROI is clear. Reducing waste doesn’t only benefit the planet—it’s a direct boost to profitability.”
The secret lies in shifting mindsets as much as implementing new technologies.
By reevaluating procurement practices and menu design, hotels are uncovering efficiencies that were hiding in plain sight.
Future-proofing through long-term investment
A reluctance to prioritise sustainability often stems from focusing too much on upfront costs. But Jeffery Smith, Vice President of Sustainability at Six Senses, argues that this perspective overlooks the bigger picture.
“When you evaluate the life cycle of a property—20 or 30 years—the savings from sustainable infrastructure investments become undeniable,” Smith said.
For Six Senses, energy upgrades such as HVAC improvements are strategic investments, equipping the brand to tackle escalating energy costs, tighter regulations, and attract sustainability-minded guests.
For Smith, the maths is simple: long-term investments in green infrastructure aren’t a luxury—they’re a necessity for survival in an evolving industry landscape.
Read more insights from GSTC2024: Carbon tracking for corporate travel. Accountability, but at what cost?
Efficiency without compromise
Sustainability is often framed as a trade-off between operational savings and guest experience.
At Mandarin Oriental, however, it’s proving to be the opposite: an enhancer of both.
Through regular energy audits and sustainability-driven CAPEX decisions, the brand has maintained its luxury credentials while also cutting costs.
“Guests expect high standards, and rightly so,” said Iris Lam. “We’ve shown that you can enhance the guest experience while improving operational efficiency.”
Mandarin Oriental demonstrates that sustainability doesn’t have to mean compromise.
By embedding eco-practices into long-term planning, the brand proves green initiatives can enhance both financial and experiential value.
Sustainability at any scale
Smaller operators often see sustainability as a challenge reserved for big players. But Jeff Yeo of Big Tiny is flipping that narrative. His properties combine thoughtful design with resource-efficient operations, proving that sustainability can be an advantage, not a burden.
“We’re not just saving money,” Yeo explained. “We’re showing guests how sustainability can enhance their experience in creative and unexpected ways.”
By finding cost-effective solutions and prioritising smart investments, Big Tiny demonstrates that sustainability can thrive even on modest budgets—an inspiring model for independent operators.
Tuu takeaway
Here’s the truth: ignoring sustainability is far more expensive in the long run.
The financial argument for sustainability is crystal clear, whether it’s reducing kitchen waste or slashing energy costs. It’s no longer a nice-to-have; it’s a competitive necessity.
For operators of all sizes, going green now is an investment in long-term profitability.