LEED-certified hotels and buildings stand out in today’s marketplace. They not only provide benefits for the environment and reduce operating costs gained from energy efficiencies and utility cost savings, but also attract a growing population of eco-conscious customers.

By the end of 2009 there were 27 LEED-certified hotels and 697 hotels that were in the application process. Starwood Hotels and Resorts Worldwide, is arguably the leading chain with current LEED-certified properties plus those that are pursuing certification, totaling 67 in all. Its new chain of Element “eco-hotels” are all built to pass LEED standards and 12 are expected to be open by the end of 2010. Courtyard by Marriott is offering a volume build certified prototype that if replicated will in essence be automatically certified.

Other notable properties that have seen the “green” light include Seattle’s first LEED-certified hotel, the Hyatt at Olive 8; the Avalon Hotel and Spa in Portland, Oregon; the Terra Resort Group’s Hotel Terra Jackson Hole in Teton Village outside Jackson, WY; and the Platinum LEED certified Proximity Hotel in Greensboro, N.C., the first hotel in the U.S. to acquire the highest LEED rating.

More than a mere trend, LEED-certified hotels now number approximately 50, nearly doubling in the last six months. The surge in LEED applications and successful certifications in the last few years shows LEED is becoming a competitive reality for the hospitality industry.

What is LEED?
LEED stands for Leadership in Energy and Environmental Design and is an independent, non-profit, third-party rating system established by the U.S. Green Building Council (USGBC). The LEED rating system is completely voluntary and consensus-based, incorporating both established industry principles and innovative environmental technology. LEED is the most widely recognized form of green building certification in the country.

Why LEED?
LEED-certified buildings are recognized by facilities, consumers and the media as the most energy efficient and occupant-friendly structures in the world. Businesses occupying LEED-certified buildings earn savings from lower operating costs and increased revenue from a "greener" profile. For example, the Watkins Research Group found that "green" qualities are an important factor for meeting planners when choosing venues.

There are innumerable advantages associated with LEED-certified buildings. Here are the main and obvious benefits, but this is by no means a complete list:

1. Lower operating costs
• Lower utility bills from increased energy and water efficiency
• Lower maintenance cost as a result of detailed preventative maintenance plans

2. Increased property value
• Higher market value for new & existing constructions
• Higher lease-up rate than conventional buildings

3. Healthier & safer for occupants
• Improved indoor environmental quality
• Improved lighting & views

4. Certified recognition of green practices
• Approval from a non-biased, accepted authority
• Physical proof of the values of the organization that owns & occupies the building

The LEED designation from the USGBC is currently THE standard of the green building industry. Nearly every major company has tried to market itself as "green" in response to the recent sustainability movement, but only those with LEED-certified buildings have third-party verification of their claims.

How it Works
The process begins with registration of the LEED project online along with a registration fee (usually around $1,000). After registration, the project team demonstrates the sustainability of its property through documentation of various building processes and characteristics, using the USGBC-provided forms.

LEED operates on a 100-point scoring system. A property must meet a minimum of 40 of these points to attain certification. While the project team has a good deal of freedom in selecting which points to pursue, there are also a set of mandatory prerequisites that carry no points themselves, but must be achieved before points are awarded.

The project team selects a time frame, called the "performance period," in which to demonstrate compliance. The performance period can be anywhere from three months to two years. To illustrate, existing buildings can earn points for demonstrating that a certain percentage of their cleaning product purchases are sustainable by LEED standards. The project team can choose to document the building's purchases from a three-month performance period, a six-month performance period, or longer, up to two years.

Because a national LEED representative never comes on site, the process relies heavily on the documentation of the project by a local source. The creation of documentation can be very time consuming and precise (as one would expect from documenting several months of purchases, as in the example above).

Thus one individual or firm is normally charged with managing the LEED certification process as LEED Project Manager. This individual or firm normally works alongside the property management, engineering staff and third-party contractors to ensure that proper documentation is being created. Since most lodging personnel have their hands full with their own jobs, it's often advisable to seek out assistance in the form of a LEED consultant, particularly one with creativity and an ability to manage teams of people.

Once the forms have been completed and all additional documentation has been collected, the LEED application is submitted online to the USGBC along with a second fee, which ranges from $2,000-$30,000 depending on the size and complexity of the project.

Explaining LEED Standards
While the majority of LEED applicants seek to certify new construction, LEED standards are now available for existing buildings, commercial interiors, schools, and core/shell. Buildings can qualify for four levels of certification, based on the number of points achieved in the 100-point scale:

Certified: 40-49 points
Silver: 50-59 points
Gold: 60-79 points
Platinum: 80 points or higher

These 100 possible points come from exceeding standards in seven different categories:
Sustainable Sites – Where is the building located? Points here can be achieved for being in a developed urban area with access to public transportation, for reducing light pollution & storm water run-off, for reducing the urban "heat island" effect by having covered parking, large landscaped areas or a living green roof.

Water Efficiency – What is the efficiency rating of the water fixtures? Points can some from super low-flow fixtures that use less water than the industry standard, for a low-water irrigation system or creative gray water reuse system.

Energy & Atmosphere – How does the building's energy use compare to the rest? Points for being more energy efficient than similar buildings in the same size and use category, per Energy Star standards; for solar panel systems or green power purchases. Points are also awarded for commissioning the building to ensure it is running at its most optimal level.

Materials & Resources – What materials is the building made from? Points for rapidly renewable, recycled and regional materials; for diverting waste from the landfill by recycling or composting; for an existing building, points for purchasing rapidly renewable, recycled and regional materials needed for daily operations.

Indoor Environmental Quality – How comfortable is the building for its occupants? Points for exceeding the minimum outside air or minimum filter requirements; for selecting paints and cleaning products that do not emit harmful chemicals; for providing daylight and views to the majority of the interior spaces, and points for providing heating and cooling systems that can be easily adjusted by occupants.

Innovation in Operations – This category allows each project team the flexibility to address a green-building feature not found in any of the above categories.

Regional Bonus Points – Some environmental issues are highly regional in nature, such as the greater need to conserve water in the dryer Western states. LEED recognizes the importance of these issues and awards bonus points for addressing credits sensitive to the region where the building is located.

Properties in the hospitality industry have a wide range of functions, including food and beverage operations, laundry operations and maintaining HVAC conditions for guest comfort, which can make the LEED-application process somewhat complex, but at the same time these nuances offer many opportunities for improvement and for gaining LEED points.

Hotels, then, are well-suited for LEED certification in many ways.
1. Waste reduction: Environment-friendly and cost-savings options can include providing reusable cloth towels in public restrooms, which significantly reduces the number of paper towels used; purchasing recycled-content toilet paper and tissues for guestrooms; switching to a paperless check-in system; replacing paper cups with reusable plastic ones; replacing bottled water with coolers of water.

2. Energy savings: Reconfiguring lighting and HVAC schedules can save tens of thousands of dollars yearly; switching to an ozone laundry system reduces water usage, uses only cold water and shortens the washing cycle; upgrading all applicable guestroom lighting to energy efficient CFL bulbs.

While LEED certification can be a lengthy and detailed process, it is well worth the effort. In the past two years, survey after survey shows that the LEED designation carries considerable weight with a burgeoning population of environmentally conscious travelers. Most notably, the Trip Advisors 2010 Travel Trends Survey reports that fully one-third of travelers now consider green policies when making hotel choices.

The bottom line is this: The compensations for befriending planet Earth and meeting LEED standards can be enormous cost savings from waste, energy and water use reduction, savings resulting from improved procurement policies, and a “green” identity and public relations value resulting naturally from LEED certification which so often leads to an increase in sustainability driven conferences and guestroom sales. It’s no wonder that LEED certification is fast becoming the norm in the hospitality industry!

As Director of Business Consulting for UHG Consulting, Darren Johnston advises hospitality firms on how to reduce their operating costs through sustainability programs. Boulder, Colorado-based UHG Consulting is a full service sustainability consulting firm specializing in design, administration and support of sustainability initiatives ranging from waste reduction to LEED certification. Johnston can be reached at djohnston@uhgconsulting.com.

Patty Breech is a LEED Accredited Professional with experience in sustainability projects serving the hospitality, customer service and non-profit industries.