Energy efficiency in hospitality: smart savings for small businesses

Running a small or medium-sized hospitality business, whether it’s a boutique hotel, a family-run restaurant, or a local pub, comes with its fair share of challenges. Rising energy costs are one of them. With the UK hospitality sector spending over £1.3 billion annually on energy, even small improvements in efficiency could make a big difference to your bottom line¹. The good news? You don’t need a huge budget or a full-time sustainability officer to start saving. Many energy-saving measures are simple, affordable, and easy to implement.

Smart Meters: Your Energy-Saving Ally

One of the easiest ways to get started is by upgrading to a smart meter. Unlike traditional meters, these give you near real-time insights into your energy usage, helping you spot patterns, identify waste, and make informed decisions. For small hospitality businesses, this means you can track how much energy is used during peak service hours, overnight, or in quieter periods , and adjust energy usage accordingly.

Smart meters also make budgeting easier by providing accurate readings, eliminating estimated bills, and helping you forecast future costs². They’re a simple but powerful tool for improving energy awareness across your team and encouraging more efficient habits.

Lighting: Quick Wins That Shine

Lighting is often overlooked, but it’s one of the easiest places to start. Switching to LED bulbs could cut lighting costs by up to 50%¹. Adding timers or motion sensors in areas like toilets, storage rooms, and corridors can avoid lights being left on unnecessarily, and regularly cleaning light fixtures and windows can help maximise brightness without using extra energy.

Heating: Stay Warm, Spend Less

Heating can account for over 40% of energy use in small to medium hospitality businesses¹. Servicing your boiler annually and insulating pipes and tanks could save up to 20% on heating bills¹. If your thermostat is near a heat source or draught, move it to a more accurate location. Consider installing thermostatic radiator valves (TRVs) to control temperatures room by room, especially useful in guest areas or function rooms.

For businesses with consistent heating needs, like those with swimming pools, air-to-water heat pumps offer an efficient way to produce hot water and heating.

Ventilation and Air Conditioning: Keep It Cool Without the Cost

Mechanical ventilation and air conditioning are increasingly common, but they can be expensive to run. Use natural ventilation when possible, and clean fans and ducts regularly to improve efficiency. If your business has varying occupancy patterns, consider installing a seven-day timer or a Building Energy Management System (BEMS) to automate heating and cooling based on usage.

Water: Save Drops, Save Pounds

Water is both metered and manageable. Set hot water systems to 60ºC to balance safety and efficiency¹. Install spray taps and water-efficient showerheads in guest and staff areas. Tap timers and urinal flush controls can also help reduce waste in communal spaces.

Kitchen Efficiency: Cut Costs Behind the Scenes

Kitchens are energy hotspots. Train staff to switch off equipment when not in use and label appliances with warm-up times. Use dishwashers only when full and keep fridge and freezer doors closed. Regular maintenance, like checking oven seals and cleaning burners, can prevent energy loss and extend equipment life.

Building Fabric: Insulate to Accumulate

Heat loss through walls, floors, and ceilings is a hidden drain on your energy budget. During refurbishments, consider insulating roof spaces and cavity walls. Draught-proof doors and windows, and check for damp regularly. Even simple fixes like sealing gaps or installing triple glazing on exposed sides could improve comfort and reduce costs.

Practical Progress Starts Here

Energy efficiency isn’t just for big chains, it’s a smart move for every hospitality business. By making small changes today, you could reduce your energy bills, improve guest comfort, and show your commitment to sustainability. And with customers increasingly choosing eco-conscious businesses, it’s a win-win for your business and the planet.

For more practical advice on how to reduce your emissions and save on your energy costs, download our guide created in partnership with the Carbon Trust.

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