Despite Building Costs, Green Hotels Equal Value

PHOENIX-Although it may cost a developer more to build a green hotel, the payoff will come when the property is sold. That was the message during a panel discussion, “Going Green: Environmentally Profitable Hotels,” held Thursday during the 13th annual Lodging Conference.

As president of Atman Hospitality, Wen-I Chang built the first LEED Gold-certified hotel project in the US, the 133-room Gaia Napa Valley Hotel and Spa in American Canyon, CA. The project opened in November of last year. Chang said that constructing the Napa Valley property to LEED Gold standards added about 15% to the development costs. However, he noted that he has a second project now under construction in which the premium to build with environmentally friendly specifications will be between 6% and 8%.