The hidden cost that quietly eats into hotel margins

You’ve cut where you can. Tightened rotas. Reviewed supplier contracts. Balanced rate pressure against guest experience.

But one area keeps creeping up, almost silently and it’s draining more than you realise.

Energy use.

Not because you’ve ignored it. But because in hospitality, it rarely shouts. It hums quietly in the background, unchecked and rarely questioned. That’s why it keeps overspending and why the fix is more within reach than most general managers are led to believe.

You're not imaging it: energy costs are higher than ever

RSM’s hotel tracker confirms what hotel GMs have felt for months: energy costs have more than doubled in the past four years. For many, it’s now 5% or more of total revenue. That’s a tough line to stomach when other costs, e.g. staffing, supplies and maintenance are also climbing.

And unlike other suppliers, energy rarely comes with a clear breakdown. Many GMs don’t have the time to scrutinise it. Or the data access. Or the right partner to explain what’s going on behind the meter.

The quiet ways hotels overspend on energy

This isn’t about waste in the traditional sense. There’s no burst pipe. No glowing red warning light.
But hotels, even well run ones, tend to bleed energy through things like:

• Overvoltage that causes equipment to draw more power than needed
• Heating and cooling systems working against each other
• Mismatched capacity allowances that lead to penalty charges
• Old controls or poorly programmed BMS settings
• Rooms, kitchens and laundries using more than they should during off-peak

None of these things look like a crisis. But they add up. And they do so quietly.

It's not just about chasing a better rate

Plenty of hotels review their contracts each year. But even if the rate looks reasonable, the shape of your deal might not suit your usage.

Are you paying reactive power charges? Is your site set up to match your actual operating profile? Are third-party charges inflated because of a contract mismatch?

These aren’t questions most GMs have the time, or in-house resource, to answer. But they can mean thousands lost, even when your headline rate seems “fine.”

Why this gets missed

Hotels are energy intensive. You’re open around the clock. Guest comfort is non-negotiable. Kitchens, pools, spas and laundries all add complexity.

Even comparing usage year on year isn’t straightforward when occupancy fluctuates and rate seasons shift.

You’re probably already doing a lot right. That’s the frustrating part. Most energy overspend in hotels happens not because of neglect but because nobody’s had time to look closer.

You don't need to overhaul everything

You don’t need new kit or capital projects just to make a difference. For most hotels we support, the first step is simply clarity:

• Understanding how your usage compares to other similar-sized sites
• Knowing what you're actually being charged for and why
• Spotting mismatches between your setup and your contract
• Getting a view of which areas are worth addressing now and which can wait

Think of it as a health check for a part of your business that’s often taken for granted.

What we do at Troo

We support UK hotels to get control over their energy. From the fine print in your supply contract to the technical quirks in your back of house systems, we help you understand where you are now and what you can do differently.

We’re not a supplier, and we don’t disappear after the contract’s signed. Our team becomes part of yours, helping you turn energy from a silent drain into something manageable, steady, and less expensive over time.

Get a clear view of where your hotel might be overspending and what you can do about it.

Request your no-obligation energy health check.