ESG expectations are rising faster than hotels can adapt

Why rising guest, corporate, and financial demands are exposing sustainability gaps in high-end hospitality

There is growing pressure on luxury hotels to deliver credible sustainability practices amid rising expectations from younger travelers, corporate guests, and financial institutions. Panelists at the Inspire: Luxury Hospitality Conference stressed that while sustainability is now non-negotiable in the luxury segment, many hotels still struggle to translate rhetoric into meaningful action. The discussion highlighted operational, cultural, and financial challenges — from aligning multinational staff to navigating costly certification standards. Experts agreed that better education, data transparency, and industry collaboration are essential to driving long-term, commercially viable ESG progress.

Key takeaways

• Mandatory ESG expectations: Younger leisure travelers and corporate clients increasingly demand sustainability commitments, making ESG alignment essential in luxury hotels.
• Gap between rhetoric and practice: Many luxury properties promote sustainability in marketing but lack consistent, integrated implementation across departments.
• Financial institutions driving change: European banks now require sustainability measures for hotel projects, influencing development decisions and long-term asset value.
• Operational alignment challenges: Multinational teams, differing languages, and varying levels of ESG understanding complicate execution and reporting.
• Shared responsibility between staff, management and guests: Hotels must communicate policies clearly and lead by example to create consistent behaviors throughout the property.
• Water remains an under-prioritized resource: Experts highlighted water efficiency as a major blind spot in hotel ESG programs, likely to grow in importance as energy improvements mature.
• Rising costs and difficult trade-offs: Some certification requirements increase operational costs by up to 40%, leading hoteliers to question which standards genuinely deliver impact.
• Need for better data and transparency: Hoteliers are encouraged to benchmark sustainability metrics as openly as they share performance data like RevPAR to accelerate learning.
• Collaboration and regulatory clarity: Industry-wide efforts — supported by clear guidance from regulators — are seen as essential to scaling meaningful sustainability outcomes.
• Importance of emotional engagement: ESG communication must be sincere, emotionally resonant, and paired with technology to inspire participation from guests, staff, and partners.

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