Can low carbon and luxury hotels coexist?  

Having attended both the Global Hospitality Talk (GHT) and Energy Environment Alliance (EEA) conferences, it was impossible to dismiss the emphasis on sustainability and ESG (environmental, social and governance), signalling a pivotal shift in industry priorities.

The EEA's, our recent collaborators, report 'How Important is ESG to Hospitality Investors' states that among ESG considerations, energy efficiency currently ranks highest for hospitality investors. Largely driven by high energy prices and the potential to boost profitability and asset value by lowering operational costs.

Furthermore, the JLL presentation at the GHT highlighted that many European countries now face escalating climate risks such as draughts, water scarcity, extreme heat and floods. Consequently, the EU has introduced stricter regulations like the Corporate Sustainability Reporting Directive (CSRD), requiring large companies to report on their ESG performance. These measures aim to enhance transparency and accountability, ultimately driving more sustainable practices and investments.

Above regulations come in addition to existing hurdles with local regulations, supply chain uncertainty, as well as skills and staff retention.

That raises a question; is the hotels and hospitality sector ready to confront its environmental impact? And is the luxury side of the sector even willing to do so?

Sustainability doesn’t need to be difficult

With an engineer’s hat on, there are substantial opportunities for reducing operational energy costs, particularly in building services. The Synchro Yards project in Montenegro exemplifies this, a five-star hotel development where heating, cooling and hot water is provided by air source heat pumps, lighting consists of high efficiency LED luminaires with presence and daylight controls, and system performance is optimised using SMART and building controls management system, without compromising guest comfort.

Similarly, in Madrid, we conducted an energy study and systems performance modelling for a five-star hotel. Our findings showed that implementing controls management system for heating, cooling, and lighting could reduce guestroom power consumption by around 15%. This allows guests to personalise their comfort, an essential part of the luxury experience, while building operators benefit from lowered operational costs.

Could UK lead the way for a sustainable hotels and hospitality sector?

As the global shift toward sustainability accelerates, the hospitality sector cannot afford to lag.

In the UK, the launch of UK Net Zero Carbon Buildings Standard last year marked a step forward, offering clear targets and framework to guide hotel assets towards low energy and carbon performance.

Contributing to the Standard as part of the sector’s working group was a valuable opportunity, enabling numerous discussions with industry peers about how a low carbon future for hotels and hospitality sector could look like. With the Standard now in pilot testing, industry input is critical for its accuracy and relevance.

And that brings me to my next point about wider sector engagement and collaboration. We can’t have a sustainable sector, especially the luxury side of it, if we are not talking and sharing our stories with each other. That’s why after the launch of the Standard’s pilot version, we hosted a panel discussion as part of our Breakfast Briefings, inviting experts to share insights on the sector’s future. One recurring theme was the challenge of energy-intensive features like pools. Luxury side, and not only, of the sector will compete in offering best product and experience to meet guest expectation, so how do we balance experience with environmental responsibility?

One effective way to tackle this challenge is to decarbonise existing hotel assets. This approach significantly reduces embodied carbon supporting the UK’s transition to net zero. To stay competitive and meet evolving guest expectation, often centred around sustainability, luxury hotels must embrace thoughtful upgrades. “Sustainability can be beautiful”, as noted by one of our panelists, it doesn’t detract from design rather enhances it. Using reclaimed materials or preserving original structures not only lowers environmental impact but also enriches storytelling, strengthening connections with guests.

Can low carbon and luxury hotels coexist?

Evidently, the hospitality industry is evolving, luxury is no longer defined solely by excess — it’s about emotional connection, meaningful experiences, and conscious choices. Today’s guests seek memorable stays that align with their values, including environmental responsibility. While the EU and UK regulations will guide the sector transition, the real momentum will come from within — through open dialogue, shared learning, and a willingness to innovate.

Of course, not every hotel will transform overnight, but as sustainability becomes a shared priority and policy expectations rise, the shift will follow.

If you ask me “Can low carbon and luxury hotels coexist?”, my answer is simple. Yes! As noted before, sustainability doesn’t compromise luxury—it enhances it. We can now deliver high-end experiences while reducing carbon impact.

A low-carbon future for luxury hospitality isn’t just possible — it’s already beginning.