By Jeff Johns
Energy management is a high priority in hospitality. After labor, energy is usually the highest operational cost and reducing consumption is as much about saving money as it is about saving the environment. While sustainability is a noble goal and drives some guest preferences, most hoteliers primarily want to reduce spending and maximize Net Operating Income (NOI) without negatively impacting the guest experience.
To meet this demand, a plethora of energy management solutions (EMS) have been offered over the last 20 years, promising big savings. But not all smart thermostats are created equal, and in fact, the underlying technology can be very different across systems. This can potentially increase the total cost of ownership, introduce risk and add complexity for managing the system for both staff and the organization.
If you’re considering an investment in EMS, here are some key questions to keep in mind as you weigh the options:
Is the system cloud-native or merely cloud-connected?
Many EMS providers market their product as a cloud solution, but still require an on-premises server to do all the heavy lifting. This is a cloud-connected setup, where the server collects data from and sends programming commands to the individual room thermostats, and the data is synced from that device to a cloud server.
That device also requires maintenance. Even if it’s just a laptop, it still needs to be managed by someone trained in administering the system, running the software and troubleshooting issues, and that software will require updates and licensing. With a tight labor market and understaffing across the industry, that could make the EMS more of a burden than a benefit. When an issue can’t be resolved quickly onsite, the guest experience suffers.
By contrast, in a cloud-native architecture, there’s no on-property equipment aside from the in-room thermostats. They communicate directly with the cloud server for data collection and programming. This eliminates the capital investment in an on-premises server and dramatically reduces the technical requirements for on-property staff.
Cloud-native solutions also provide advanced capabilities that enhance the system’s value, including above-property monitoring. These platforms offer brand-wide visibility that allows corporate operations and efficiency specialists to see real-time data down to each room, track energy performance, benchmark properties against one another and leverage machine learning and AI to create more efficient strategies to save energy, based on individual property performance.
Does it align with network standards?
Many smart thermostat systems deployed over the past 10+ years operate on RF networking or proprietary RF systems, which can limit flexibility and scalability. It also introduces additional lag time because they often connect via RF mesh networks instead of WiFi and IP networking.
Lean toward EMS solutions that are compatible with the latest IT standards, including WiFi networking, which provide greater digital security and can operate on both the 5 GHz and 2.4 GHz frequencies for greater flexibility in network deployment.
Does it adhere to cybersecurity policies?
Network security is a huge concern in hospitality. No other industry offers an environment where a potential bad actor could check in, pay cash to rent a room with a fake ID and then spend the next several days trying to hack the network from the inside. Even major brands and ultra-modern properties with the latest cybersecurity solutions are not immune to cyberattacks like ransomware or network ID spoofing.
That’s why IT and cybersecurity teams must be heavily involved in making EMS purchase decisions to ensure the solution complies with security policy standards. While the thermostat might seem innocuous, Target was the victim of a well-publicized breach that leveraged its HVAC system for access, and hackers stole a casino’s high-roller database by accessing a smart thermometer used to monitor water temperature in the lobby aquarium.
WiFi-based EMS solutions deployed atop networks with built-in security offer superior cybersecurity protection. And because the thermostats run on the existing WiFi, that means one less network protocol to secure and fewer vulnerabilities.
What is the network burden?
In the days of IoT everything, the EMS is one piece of a vast, connected landscape. From the guestroom door locks and the minibar to fitness equipment and the POS at the sundries shop, everything requires connectivity. And that doesn’t include guests’ personal devices for working, streaming, gaming and Facebook or TikTok scrolling.
That means robust WiFi, ample bandwidth and network segregation are paramount to avoid slow response time and increased latency. Otherwise, guests could be greeted upon arrival with a sweltering room that takes forever to cool down.
Cloud-native EMS solutions run on the same network infrastructure as guest WiFi, yet create a negligible amount of traffic, which reduces bandwidth demand, IT staff burden and network congestion. When firmware updates are required, they’re automatically pushed from the cloud with no hands-on work required.
Does it integrate with the existing technology?
Because some smart thermostats operate on proprietary systems, this makes integrating with existing HVAC and Property Management Systems (PMS) difficult. Some even require additional hardware and wiring to be installed, which adds substantially to the cost.
A key benefit of an advanced EMS is the ability to integrate broadly with existing technology, including HVAC and PMS. This allows hoteliers to optimize room temperature based on occupancy and anticipated guest arrival. It’s far from ideal to have guests greeted by a roaring PTAC as the system works overtime to regulate the temperature ASAP based on door activation.
EMS systems that integrate with PMS deliver a more efficient and pleasant experience. The system can begin adjusting the room temperature once the guest is assigned, allowing ample time for it to reach a comfortable level before the guest swipes their keycard at the door.
Upon checkout, the system can automatically normalize to a baseline temperature and maintain it within a reasonable range, so that when the next guest arrives, the delta isn’t so large, requiring less energy to close the gap.
Is it future-ready?
With so many choices for EMS and smart thermostats, it can be hard to decide which system will work best. And with technology evolving quickly, hotels need something that’s fast, secure and broadly compatible today and down the road.
Hoteliers should prioritize simplicity, flexibility and ease of use in making their EMS decisions to minimize labor cost, troubleshooting burden and negative guest experiences. Equally important is selecting a future-ready solution rather than systems built on legacy technology designed over a decade ago.
Cloud-native designs provide a flexible platform that can grow, evolve, and incorporate new features as technology advances, delivering superior long-term value compared to static systems. By investing in modern, adaptable energy management infrastructure, hotels position themselves to efficiently meet both current operational needs and future sustainability challenges without disruptive and costly system overhauls.
Jeff Johns is global VP, EMS business development, Nomadix, an ASSA ABLOY company. He has more than 20 years of experience in hospitality technology and providing consultative design for energy management systems for guestroom automation for hospitality, casino and other markets.
This is a contributed piece to Hotel Business, authored by an industry professional. The thoughts expressed are the perspective of the bylined individual.
