Green Hotel Lawyer: Green Hotel economics 202 B. New study finds 31% price premium for green buildings.
By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
26 April 2009
Hotel Lawyers with a serious new study documenting pricing premiums for GREEN hotels. At least for new construction, properly planned from the outset, there is little or no additional cost for building to LEED certification standards (for example, see my Cornell Hospitality Quarterly article entitled "The Compelling Hard Case for Green Hotel Development.").
Even the myth that luxury hotels cannot be sustainable has been shattered with beautiful luxury hotels gaining LEED certification, like Montage Beverly Hills recent award of LEED Gold certification.
And just a few days ago, my friend Meng Li, a LEED AP whom I met through JMBM's 2008 Hotel Developers Conference, sent me a copy of a new study published by two professors at the University of Reading, documenting a very strong economic premium in both rental income and asset prices (sales price) for green buildings based upon data from 553 green projects. The numbers may even amaze you (more than a 31% value premium).