Sustainable Practices in Hotels

As Australians increasingly embrace sustainable travel and many hotels and operators sign pledges to be more environmentally friendly, experts warn to watch for signs of ‘greenwashing’. This is where companies make claims that sound eco-friendly, but lack meaningful action, write academics Rawan Nimri, Liz Simmons and Salman Majeed, PhD in The Conversation Australia + NZ. While major hotel groups including Hilton, Marriott and Accor have also set measurable sustainability targets and some 5,000 hotels worldwide have independent verification, their research shows guests often distrust vague promises. The academics advise to look for credible third‑party certifications such as Earthcheck or Green Key, detailed evidence (not slogans), visible changes such as refillable toiletries, and honesty about a hotel’s limitations. Absolute claims like '100% sustainable' without proof are red flags. “When you know what to look for, you can spot shaky green claims and choose hotels that match your values,” they write. “That pressure matters. It nudges the industry to be authentic, cuts down on greenwashing, and supports the hotels that are actually doing the work, not just putting a green label on the door.” How do you travel sustainably? What more can the travel sector do to be more eco-friendly? Join the conversation in the comments. By Cathy Anderson Image: Getty Images

In a world racing toward climate disaster, sustainability has become more than a need, it’s become a trend. And like all trends, it comes wrapped in aesthetics. Recycled kraft paper menus. Moss-green logos. Minimalist fonts. Wicker furniture. Raw wood. Off-white walls. Solar-powered hashtags. And most of all “eco-stays.” 𝐁𝐮𝐭 𝐰𝐞 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐚𝐬𝐤: When did sustainability become about how it looks, instead of what it does? It’s everywhere now. You walk into a hotel labeled as an “eco stay” and see: A bamboo toothbrush in a glass jar Filtered water in glass bottles A compost bin you’re not sure anyone empties It feels sustainable. It looks conscious. But is it? Often, not really. The aesthetic of sustainability is now a shortcut. A design language. A visual identity. But it’s being used: To greenwash hotels that still overuse energy and exploit labor To upsell “conscious” experiences to privileged travelers To create Instagram-ready moments while outsourcing the waste and water burden to local communities. If you swapped out the jute baskets and linen sheets, would the sustainability still remain? Or was it just painted on? In the tourism and hospitality space, the gap between image and impact is growing fast. 𝐌𝐚𝐧𝐲 𝐬𝐨-𝐜𝐚𝐥𝐥𝐞𝐝 𝐞𝐜𝐨-𝐬𝐭𝐚𝐲𝐬: 1.) Offer “local food” made with non-local, packaged ingredients 2.) Claim to support communities but hire no one from the region 3.) Build “nature retreats” that bulldoze the ecology they claim to protect Sustainability isn’t about switching plastic for paper. It’s about systems. About labor, circularity, governance, culture, and accountability. When the sustainable lifestyle is all aesthetic and no access, it becomes a luxury. You’re told: Sustainability means $200 linen pants That a “zero-waste” home must be made of bamboo and silence That “eco-travel” means staying in a forest resort far away from the locals This version of sustainability is exclusionary. It rewards the already privileged with the illusion of ethics. 𝐖𝐡𝐚𝐭 𝐖𝐞 𝐀𝐜𝐭𝐮𝐚𝐥𝐥𝐲 𝐍𝐞𝐞𝐝 𝐢𝐬 : Transparent sourcing, not stylish interiors Community ownership, not curated authenticity Evidence of impact, not eco buzzwords Simpler systems, not more expensive upgrades Sustainability that doesn’t just look different but operates differently Because true sustainability isn’t aesthetic. It’s infrastructural. Cultural. Lived. When sustainability becomes a style, we forget it was meant to be a system. A system that challenges how we live, consume, build, and travel not one that just looks good on Instagram. The planet doesn’t need better branding. It needs better behavior.

Hotel Performance Is No Longer Measured by Occupancy Alone Many hotel owners still focus primarily on occupancy and top-line revenue. However, in today’s hospitality market, strong occupancy does not automatically mean strong profitability. The real question is: How much of your revenue actually turns into sustainable profit and healthy cash flow? That is why modern hotel performance management must evaluate KPIs together — not separately. Metrics such as RevPAR, GOP, GOP Margin, NOI, Flow Through, Labor Cost, Direct Booking Ratio, and Net Cash Flow provide a far more accurate picture of a hotel’s operational efficiency, pricing power, commercial strategy, and long-term asset value. A hotel can increase revenue while simultaneously losing profitability due to: Weak cost control Excessive OTA dependency Inefficient labor structure Poor cash flow management Low operational leverage The strongest hotel assets are not simply the busiest hotels. They are the hotels that consistently convert revenue into: Strong operating profit Healthy cash flow Sustainable long-term value In hospitality, data without analysis has little value — and analysis without action creates no results.

After years of travelling, I’ve noticed a growing trend in hospitality: hotels remove complimentary bottled water, leave an empty reusable bottle in the room, and ask guests to walk down the corridor to refill it from a shared dispenser. While it is often presented as a sustainability initiative, many times it feels more like cost-cutting wrapped in green messaging (Greenwashing). Honestly, most guests have no idea how often those shared dispensers are maintained or how properly the reusable bottles are cleaned between stays. That’s why I genuinely appreciated what I found at Mercure Hotels (Langkawi). Instead of shifting the inconvenience to guests and calling it sustainability, they partnered with 3M to install a filtered drinking water system directly inside the room. Clean drinking water, available instantly, without single-use plastic and without compromising the guest experience. I was initially sceptical until I checked the filter itself and noticed the replacement date was less than a month old. That small detail made a big difference because it showed actual operational commitment, not just greenwashing. This is what sustainability should look like: better user experience, reduced waste, and real investment behind the promise. Well done to Mercure Langkawi for getting the balance right. 3M Mercure Hotels #sustainability #greenwashing #UX #userjourney

🔟 KPIs Every General Manager Must Master Because hotels don’t fail from lack of effort — they fail from lack of visibility. ⸻ 1️⃣ GOP – Gross Operating Profit Why it matters: This is the GM’s real report card. GOP = Total Revenue – Operating Expenses It reveals how efficiently the hotel converts revenue into actual profit, not vanity turnover. ⸻ 2️⃣ RevPAR – Revenue Per Available Room Why it matters: The ultimate balance of pricing power and demand. RevPAR = ADR × Occupancy % Every strategic decision eventually shows up here — for better or worse. ⸻ 3️⃣ Occupancy % Why it matters: Shows market pull and demand strength. Occupancy = Rooms Sold ÷ Rooms Available × 100 High occupancy with weak rates isn’t success — it’s missed opportunity. ⸻ 4️⃣ ADR – Average Daily Rate Why it matters: Reflects brand positioning and rate discipline. ADR = Room Revenue ÷ Rooms Sold Uncontrolled discounting erodes value faster than any competitor. ⸻ 5️⃣ Payroll Cost % (Labor Cost %) Why it matters: Labor is the largest controllable expense in hospitality. Payroll % = Payroll Cost ÷ Total Revenue × 100 Smart rostering protects margins without hurting service. ⸻ 6️⃣ F&B Cost % Why it matters: Directly determines profitability, especially in city and resort hotels. Key controls include: • Food Cost % • Beverage Cost % • Wastage & pilferage ⸻ 7️⃣ Guest Satisfaction & Online Reputation Why it matters: Revenue follows reputation — always. Key indicators: • Google & OTA ratings • Review sentiment trends • Repeat guest ratio ⸻ 8️⃣ EBITDA Why it matters: The number owners, investors, and asset managers trust most. Shows true operational strength before finance, tax, and accounting effects. ⸻ 9️⃣ Revenue Mix Ratio Why it matters: Reveals dependency and risk. Tracks contribution from: • Rooms • F&B • Banquets • Ancillary outlets A balanced mix creates stability in uncertain markets. ⸻ 🔟 CPOR – Cost per Occupied Room Why it matters: Shows the true cost of servicing one guest room. Helps uncover: • Energy inefficiencies • Overstaffing • Vendor leakages ⸻ 💡 GM-Level Insight Great GMs don’t review KPIs monthly — they respond to them daily. Every KPI should answer three questions: Where is money leaking? Where can profit grow without adding cost? What must the team focus on today?

This procurement choice made me unpopular. But I’d do it again in a heartbeat. We were sourcing branded merchandise from a factory in China. The quote ticked all the right ESG boxes: recycled materials FSC packaging ethical practices But it didn’t hold up. The FSC code they listed registered their logistics provider. They claimed “100% recycled” but it turned out to mean the product could be recycled, not that it was. And when I asked for proper audit reports they sent me a glossy PDF full of "stock images". So I suggested we walk away. Yes it delayed the project. It also annoyed a few stakeholders. But I wasn’t willing to back a claim I couldn’t verify. And I’m not alone. A recent EU review found 42% of green claims were exaggerated, false or deceptive. In the supply chain space, 70% of ESG statements go unverified. And big brands get caught in this all the effin time. Here are 3 real signs of greenwashing I’ve seen in supplier deals and what to do about them: 1️⃣ Borrowed credentials Suppliers list certifications they don’t actually hold. One factory used another company’s FSC code to look compliant. ♻️What to do: Cross-check certificates on official registers. If the name doesn’t match the supplier’s legal entity it's a huge red flag. 2️⃣ Buzzwords over substance "Eco-friendly”, “green-certified”, “sustainable packaging” but no hard data. A Changing Markets Foundation report found 60%+ of fashion brands rely on vague ESG language without evidence. ♻️ What to do: Ask for LCAs or raw material breakdowns. If it’s just buzzwords, assume it’s fluff. 3️⃣ PowerPoint proof When asked for ESG evidence, some suppliers send marketing decks. One even shared a “sustainability video” instead of an audit. ♻️What to do: Ask for third-party audit results. If they avoid it twice, move on. Greenwashing is getting smarter. Procurement needs to get bolder. We’re canot forget that we must protecting brands, values, and compliance. Would you have also walked away too? Or tried to make it work?

hospitality 2026 (4/7): behind the green curtain. sustainability vs. theater. ________ If you have to tell me how much sustainable and great you are… are you sure you are? ________ This week I’m breaking down the 7 forces shaping hospitality in 2026. What actually matters. What quietly backfires. No slogans. Post 4 of 7: Sustainability & Greenwashing. Let’s address this directly: Sustainability is no longer optional - but pretending is more dangerous than doing nothing. Guests today don’t just ask if you’re eco-friendly. They ask how, where, and at what cost. And many brands are stuck in the middle: • Energy prices rising • Sustainable sourcing costing more • Waste regulations tightening • Margins already under pressure So what happens? A linen reuse card. A vague line about “local products.” A website paragraph written by marketing. That’s not sustainability. And guests feel it. ________ In 2026, the accusation of greenwashing doesn’t come from activists. It comes from your core customers. They Google. They compare. They ask staff questions your team can’t answer. The real tension isn’t eco vs profit. It’s honesty vs performance. The brands doing this right aren’t louder. They’re clearer. They pick fewer initiatives - and measure them. They accept trade-offs instead of hiding them. They explain why something isn’t perfect yet. Transparency beats perfection every time. Certifications help - but only if they’re lived, not framed. Storytelling matters - but only if it’s backed by operations. Sustainability isn’t a campaign. It’s a sequence of decisions guests can trace. Are you willing to be judged on facts instead of intentions? Because in 2026, sustainability isn’t about being “green.” It’s about being credible. ________ This is 4/7 of the series. Next: the guest themselves - and why loyalty doesn’t work the way it used to. Follow me Norbert Jacniak if you want clarity instead of comfort. You know where to find me - if you need culinary support.

𝗣&𝗟 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁: 𝗧𝗵𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗖𝗼𝗺𝗽𝗮𝘀𝘀 𝗳𝗼𝗿 𝗛𝗼𝘁𝗲𝗹𝘀, 𝗥𝗲𝘀𝘁𝗮𝘂𝗿𝗮𝗻𝘁𝘀, 𝗟𝗼𝘂𝗻𝗴𝗲𝘀, 𝗖𝗹𝗼𝘂𝗱 𝗞𝗶𝘁𝗰𝗵𝗲𝗻𝘀 & 𝗖𝗮𝘁𝗲𝗿𝗶𝗻𝗴 In hospitality, revenue gets attention, but profit determines sustainability. A Profit & Loss (P&L) Statement is not just a finance report—it is a strategic tool that reveals the true health of a business and answers one critical question: "After all expenses, how much money did the business earn?" A hospitality P&L typically follows: Revenue → Cost of Sales → Gross Profit → Payroll Cost → Operating Expenses → EBITDA → Net Profit Revenue Sources 🏨 Hotels: Rooms, F&B, Banquets, Spa, Laundry 🍽 Restaurants & Lounges: Food, Beverages, Deliveries, Events ☁ Cloud Kitchens: Online, Aggregator, Direct, Corporate Orders 🎉 Catering: Corporate, Industrial, Institutional, Event Catering Cost of Sales (Food & Beverage Cost) Includes raw materials, ingredients, packaging and consumables. Industry Benchmarks • Hotels F&B: 28–35% • Restaurants: 28–38% • Lounges: 20–35% • Cloud Kitchens: 25–35% • Catering: 30–40% Payroll Cost Includes salaries, wages, incentives, overtime and contract labor. Benchmarks • Hotels: 20–30% • Restaurants: 15–25% • Lounges: 18–28% • Cloud Kitchens: 10–18% • Catering: 12–20% Operating Expenses Key cost drivers include: ✔ Rent & Occupancy Costs ✔ Utilities ✔ Maintenance ✔ Marketing ✔ Technology ✔ Licenses & Insurance EBITDA Targets • Luxury Hotels: 20–35% • Restaurants: 12–20% • Lounges: 15–25% • Cloud Kitchens: 15–30% • Catering: 10–20% Critical Ratios Every Leader Must Monitor ✅ Prime Cost (Food Cost + Payroll Cost) Target Levels: • Restaurants: <60% • Cloud Kitchens: <55% • Lounges: <58% • Catering: <65% ✅ Revenue Per Employee ✅ Average Transaction Value (ATV) ✅ Revenue Per Available Seat (RevPAS) Why Businesses Lose Money Despite Strong Sales ❌ Poor Menu Engineering ❌ Food Waste ❌ Overstaffing ❌ Inventory Leakages ❌ Discount Dependency ❌ High Occupancy Costs ❌ Reviewing Sales Daily but P&L Monthly Monthly P&L Review Checklist ✔ Revenue Trends ✔ Food Cost Variance ✔ Payroll Review ✔ Vendor Cost Analysis ✔ Menu Profitability ✔ Utility Review ✔ Waste Analysis ✔ EBITDA Performance ✔ Cash Flow Assessment The Future of Hospitality Finance Leading operators are using: • Real-Time P&L Dashboards • AI-Based Forecasting • Predictive Labor Scheduling • Automated Inventory Systems • Menu Profitability Analytics • Integrated ERP Platforms The future belongs to operators who manage profitability with the same focus they manage sales. Revenue Creates Visibility. Gross Profit Creates Strength. EBITDA Reflects Efficiency. Cash Flow Ensures Survival. Profit Creates Sustainability. The most successful hospitality leaders do not wait for month-end surprises. They monitor their P&L continuously and make data-driven decisions every day. #Hospitality #Hotels #Restaurants #CloudKitchen #Catering #Profitability #PandL #Finance #CostControl #BusinessGrowth #HospitalityLeadership

In Hospitality, Revenue is Not Enough. These 5 Ratios Reveal the Truth. Over 90% of startups fail within five years — and most were growing revenue. I’ve seen the same in hospitality. Hotels celebrating high occupancy, packed banquet halls, and growing top lines — but beneath the surface: losses, debt, delayed payments, and thin margins. At GRT Hotels, I’ve learned this firsthand: Revenue tells you how fast you’re driving. But financial ratios tell you if you’re about to hit a wall. Here are 5 ratios every Indian hotelier must understand if they want to build a business that lasts: 🔹 1. Gross Margin What it means: How much money you keep after covering the cost of your services (rooms, food, etc.). Why it matters: A healthy gross margin (ideally 40%+) gives you power to reinvest in quality, innovation, and people. At GRT hotels , reengineering our menus to local recipes with a strong story in Radisson city center Bengaluru and streamlining purchasing helped increase F&B gross margins significantly by 14% 📌 More margin = more muscle. 🔹 2. Burn Rate What it means: How much cash you spend monthly to run your business. Why it matters: If you’re burning cash faster than you’re earning or raising it, you’re in trouble — no matter how great your revenue looks. During COVID, we cut our burn at Grand Chennai and other GRT hotels through smart ops and launching cloud kitchens — without compromising guest care. 📌 Control your burn, or your burn will control you. 🔹 3. Cash Conversion Cycle (CCC) What it means: How fast you turn your investment (in inventory, services) into cash from customers. Why it matters: A long CCC means your money is stuck — even if your sales are high. At Radisson Blu GRT Hotels and suites Chennai a we moved to upfront wedding payments , tight controls on credit and renegotiated vendor terms, improving cash flow. 📌 Revenue without cash is like bookings without check-ins. 🔹 4. Debt-to-Equity Ratio What it means: How much debt your company uses compared to its own capital. Why it matters: Too much debt makes your business fragile during downturns. Our expansions like Great Trails Kodaikanal and Radisson Pondy Bay and other GRT hotels were built with strategic capital, not over-leveraged loans. 📌 Debt must power growth — not pressure survival. 🔹 5. CAC to LTV Ratio (Customer Acquisition Cost vs. Lifetime Value) What it means: How much you spend to get a guest vs. how much that guest brings over time. Why it matters: Sustainable brands spend wisely to earn deeply loyal customers. With our Great Foodie loyalty programs and direct booking incentives we drive 3–4x the value of one-time OTA bookings. 📌 Loyalty is not a program. It’s a profit engine. 💡 Want to build a hotel that thrives, not just survives? Know your numbers. Respect your ratios. Lead with clarity. Because applause fades. But fundamentals last. #HospitalityLeadership #FinancialAcumen #GRTHotels #IndianHospitality #HotelProfitability #BuiltToLast

There are some serious weaknesses with certification: It is opaque – the consumer does not know how well the accommodation is doing in tackling the issues that the consumer cares about. The traveller may book a certified business only to find that it has poor labour conditions or uses water profligately. There is no remedy for the traveller when the hotel fails to live up to the “promise” implied by certification. This may be because: > the accommodation provider does not care about the sustainability issues that the particular consumer cares about; > the management is not managing the accommodation in compliance with its certification. If you book a certified hotel and find that as you enter the room, the lights are on, the TV is telling you who you are, and the temperature is set at 15°, there is little you can effectively do. Without clear statements of sustainability practice and performance, the consumer cannot seek compensation for misselling. Each time a consumer experiences a failure to manage the accommodation in compliance with their expectations based on the certificate awarded by the unaccountable certification agency, faith in certification declines further. As I have argued here before, “Certification may be the safest form of greenwashing. It certainly denies consumers information about what sustainability measures the business delivers and any means of holding the business to account for misselling.” I welcome the EU Green Claims Directive. It could allow consumers to hold businesses and destinations accountable for misselling, but that requires explicit claims against which the business or destinations can be tested. Certification does not provide that, and there is no mechanism for ensuring that hotels manage their property in compliance with their certificate. https://lnkd.in/dNzvPfju