The “real” value of green certifications for hotels

As stakeholders’ demand for sustainable travel continues to rise, green building certifications will act as a tangible indicator of ESG adoption

Dec 1, 2023

Based on JLL’s recent Hotel Operator Sentiment Survey, obtaining external sustainability rating was the key action point on the Operators’ agenda for 2024. The latest survey by also shows that 65% of guests would feel better about staying in a particular accommodation if they knew it had a sustainable certification or label.

Key takeaways

  • While the evidence of a direct impact on Average Daily Rate (ADR) in relation with green building certifications is limited, the advantages are becoming increasingly apparent in markets where jurisdictions, financial institutions and private corporations are setting ESG standards;
  • Owners and developers in such markets could directly benefit from regulatory incentives, gain access to green financing and retain corporate demand by getting their properties accredited;
  • To meet the changing demands of corporate stakeholders, global operators like Marriott, Hilton, Accor, and others are prioritizing the acquisition of green building certifications, despite it being a time consuming and potentially costly endeavour.

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