FINANCIAL IMPACT2019-05-06T19:57:48-05:00

Financial Impact

We have demonstrated that being active stewards of our environment and our communities makes good business sense. Through EarthView’s many initiatives, we have been able to drive reductions in operating expenses and increase the value of our real estate.

To date, EarthView’s initiatives have created for Hersha:

$65 million increase in portfolio value attributed to EarthView

50 bps impact to EBITDA margin as utilities are one of the highest controllable operating expenses in our portfolio

2.5 year average payback period for our efficiency investments

$11 million in EarthView savings since inception

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4-time winner

of NAREIT’s Leader in the Light Award for Sustainable Real Estate Practices

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Top 10%

Ranking out of 874 participants for the Global Real Estate Sustainability Benchmark (GRESB)

Bennett Thomas, SVP of Finance & Sustainability at Hersha discusses EarthView’s value

EARTHVIEW’S STRATEGY

EarthView is wholly integrated into Hersha’s business strategy.

Executives and senior leadership across departments are actively involved in ensuring we continue driving financial value, environmental stewardship, and social impact as a whole, cohesive organization. Measures that increase energy and water efficiency in particular lead to those hotels having higher margins, stronger net operating income (NOI), and ultimately increased long-term valuations.

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To learn more about how EarthView is structured and managed, please refer to our
“Environmental Management System” document on our Hersha website.

Nareit ESG Forum logo

We attended NAREIT’s most recent ESG Forum 2019 in Bonita Springs, Florida to discuss industry trends, pressing issues, and ideas for how to act on these opportunities.

DRIVING VALUE & EXPERIENCES THROUGH INNOVATION

We have a history of going above and beyond, of capitalizing on innovative opportunities that create both operational savings and long-term value.

EarthView initiatives alleviate the pressure of increasing labor costs, taxes, and insurance by contributing directly to margins. Every $1 of savings from reduced energy and water usage, and lower waste production flows directly to the bottom line.

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Our initiatives also enhance our guest experience offerings – experiences that guests appreciate and seek.

For example, hotels that embrace sustainability also ensure they provide responsibly-sourced products that are better for a guest’s health. Hotels that engage with local communities and empower their associates are also ones that provide memorable amenities to elevate a guest’s stay. In short, hotels that participate in EarthView demonstrate to guests that they take a holistic approach to all aspects of the hotel experience. As guest sentiments continue to trend towards favoring experiences and businesses that reflect their own values of doing good, our hotels are uniquely differentiated to capture this growing demographic.

Our initiatives also enhance our guest experience offerings – experiences that guests appreciate and seek.

For example, hotels that embrace sustainability also ensure they provide responsibly-sourced products that are better for a guest’s health. Hotels that engage with local communities and empower their associates are also ones that provide memorable amenities to elevate a guest’s stay. In short, hotels that participate in EarthView demonstrate to guests that they take a holistic approach to all aspects of the hotel experience. As guest sentiments continue to trend towards favoring experiences and businesses that reflect their own values of doing good, our hotels are uniquely differentiated to capture this growing demographic.

Amenities we provide at many of our hotels that improve our guests’ experiences include:

Energy-efficient lighting and thermostat technology

In-room recycling programs

Locally sourced food items

Complimentary bike rentals

Complimentary high-tech fitness equipment

Furthermore, through EarthView, we provide environmental information to the increasing number of corporate and group guests looking to reduce their environmental footprints while travelling to, staying at, or holding meetings at our hotels. For instance, for meeting events, we provide tap water in glass bottles, when we can, rather than bottled water to reduce the amount of plastic used.