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					                                                                   Energy Efficiency
                                                                   Case Studies
                                                                   April 1997

                                ENERGY INNOVATORS

                                Canadian Pacific Hotels:
                                Hospitality, Tradition and
                                Good Environmental

C   anadian Pacific Hotels own and operate some of the finest hotels and
     resorts in Canada. Many Canadian Pacific properties are historic, world-class
landmarks that have become treasured symbols of hospitality and tradition.
All Canadian Pacific hotels and resorts offer a premium level of service and
comfort to their clients and are important elements in Canada’s travel and
tourism infrastructure.

        Natural Resources Ressources naturelles
        Canada              Canada                           Canada
                                                                    Energy Eficiency   Case Study-Canadian   Pacific Hotels
Several Canadian Pacific hotels date from the railway      layout and equipment‘ often vary greatly from one
era and recall the elegance and sophistication of the      complex to another, so retrofitting can be much
golden age of train travel. The newer buildings are        more expensive than fitting-out new construction.
also distinct in their settings, and they reflect the
diversity of their host cities and locations. Canadian     Energy          Efficiency           and the
Pacific Hotels owns 17 of the 26 properties it
operates and controls a total of 11 300 rooms.             Energy          Innovators             Initiative
Canadian Pacific Hotels’ interest in energy efficiency     In addition to saving money, energy efficiency is a
and good environmental stewardship dates back              means to limiting carbon dioxide emissions, which
several years. Canadian Pacific’ energy efficiency         helps Canada to meet its international obligation to
initiative across its hotels has been a useful means of    stabilize greenhouse gas emissions at 1990 levels by
promoting this endeavour. Energy performance               2000. Lower carbon dioxide emissions will contribute
contracting is a method of implementing projects:          to the abatement of greenhouse gas emissions.
it has helped to strengthen the commitment to
environmentally       sustainable operations, it has       Energy efficiency helps the environment. Canadian
assured the implementation of many energy-saving           Pacific Hotels’ pledge to promote responsible envi-
equipment upgrades and retrofits, and it has had a         ronmental practices means that energy efficiency
positive effect on the operating costs of Canadian         will play an important role in its commitment to im-
Pacific Hotels across Canada.                              prove environmental performance. Joining Natural
                                                           Resources Canada’ Energy Innovators Initiative in
                                                           1993 was a given in light of Canadian Pacific Hotels’
Employee           Support   for                           long-term decision to advance energy efficiency
Improved           Environmental                           throughout its network of properties.
Practices                                                  The EII helps Canadian organizations develop and
                                                           implement long-term and comprehensive energy-
In 1990, Canadian Pacific Hotels conducted a cross-        management strategies by providing information
company survey in which over 80 percent of respon-         and professional expertise. No financial incentives
dents expressed a willingness to commit extra              are provided as energy improvement projects are
time and effort, without compensation, to boost the        inherently economic.
environmental    performance of the company’      s
operations. Chief Executive Officer Robert DeMone          lower          Costs Coast              to Coast
echoed the sentiments of his staff when he vowed
that “our goal is to become a world leader and             Canadian Pacific Hotels have addressed a number of
pacesetter in establishing responsible   environmental     problems related to energy conservation retrofitting.
practices for the hotel industry.”                         John Pye, Regional Vice-President and General
The exceptional level of employee support for              Manager of the Royal York in Toronto, confirms
energy efficiency was formally recognized as a key         that the cost of energy efficiency investments can
element in the drive to enhance the environmental
sustainability of the company’ operations.

Exceptional   Properties,
Special Challenges
Canadian Pacific Hotels’ properties pose special             l   New, direct-drive Otis elevator systems have
challenges for the implementation of organization-               been installed, replacing equipment that dated
wide, energy-saving measures. Individual climate                 back to 1929. Total energy savings are expected
and lighting-level controls in guest rooms are essen-            to be $28,000 per annum.
tial elements of customer service and satisfaction.          l   100 vintage DC motors were replaced with
Many of its older hotels are landmark properties of              high-efficiency AC equipment, saving $125,000
historical significance and must be retrofitted in ways          per annum.
that do not detract from their period ambience. Physical
q                                                                     Energy Ejjkiency   Case Study-Canadian      Pacific Hotels

be recovered     quickly.   “The payback     on energy        for   heating,   ventilation      and air        conditioning.
conservationcan   be surprising. At the Royal York, we        “An automated system will keep the hotel comfortable
replaced leaky steam traps and fi:xed leaks in the pipes      while using a minimum of energy.” He estimates that
at a cost of $25,000. From this investment and the            the hotel will save about $450,000 per year once the
lowered steam consumption, we estimate that we are            new system is operational. “It is better to retrofit a
saving $200,000 per year.”                                    building  with new equipment      than to keep old
The steam pipes and light systems at the Ch%teau              equipment    past its life expectancy.   The cost of
Laurier in Ottawa have been retrofitted completely.           maintenance    outstrips replacement   costs, and the
Chief Engineer Sylvan0 Cava reports that the hotel is         whole operation becomes a money-pit.”
now saving about $100,000 per year. “Spending money           Installing a complete building management system
on energy conservation reduces operating costs, and the       is another way the Royal York and other Canadian
savings increase over time. Utility prices always rise, and   Pacific Hotels are saving energy.
every time they increase, we save a little more money.”       The system that controls the HVAC for all guest
Mr. Cava looks forward to the installation of an              rooms, restaurants, meeting rooms and convention
automated and computerized energy-control system              areas is fully programmable. It is scheduled to
                                                                               operate only when the areas are in
                                                                               use. While guest comfort is not
                                                                               affected, the system operates
                                                                               as per a flexible schedule that
                                                                               ensures proper temperatures are
                                                                               reached prior to the start of a
                                                                                   Another project the Royal York and
                                                                                   other Canadian Pacific Hotels are
                                                                                   engaging in now is energy
                                                                                   performance     contracting,   with
                                                                                   Johnson Controls       undertaking
                                                                                   energy-saving      measures     and
                                                                                   guaranteeing the savings. The
                                                                                   energy performance contract that
                                                                                   took about l-1/2 years to complete
                                                                                   now saves over a half-million
                                                                                   dollars annually in energy costs. It
                                                                                   will pay its costs in approximately
                                                                                   four years.
                                                                                   The      Hotel     Macdonald         in
                                                                                   Edmonton has also proven that
                                                                                   energy conservation can lower the
                                                                                   energy component of business
                                                                                   costs. Motion         sensors were
                                                                                   installed in all guest floor corridors
                                                                                   to reduce lighting levels when not
                                                                                   in use. Non-dimming,            incan-
                                                                                   descent bulbs were replaced by
                                                                                   compact fluorescents, and 30-W
                                                                                   exit lights have been replaced by
                                                                                   1.8-W LED fixtures. Domestic hot-
                                                                                   water tank temperature settings
                                                                                   have been lowered by 2O”C,
                                                                                   variable     speed motors         were

         q                                                                    Energy Efficiency Case Study-Canadian Pacific Hotels

         installed in HVAC systems, and measures to recover            effect has not changed. Sotie bulbs could not be changed,
         heat from the kitchen and laundry exhaust fans were           such as those in immense cast-iron lamps in our
         implemented.                                                  common areas, but incandescent lamps now make up
         Although room occupancy rates have increased by               only five percent of lighting in the hotel. It is gratifying
         six percent and the hotel’ restaurants now serve
                                     s                                 that we have had no feedback from our guests on the
         more meals than before conservation measures were             issue; it indicates that our retrofit has not changed the
         undertaken, energy costs at the Hotel Macdonald               look and feel of the hotel.” The lighting retrofit at
         have remained constant. More ambitious energy-                Banff Springs will reduce electricity consumption by
         performance contract proposals are now being                  $140,000 per year.
         considered carefully, as a way to achieve even more           Brian Staples, Chief Engineer at the Deerhurst Resort
         dramatic savings in the future.                               in Huntsville, Ontario, reports that an aggressive
         Some Canadian Pacific hotels date from the late nine-         conservation program is under consideration. “We
         teenth and early twentieth centuries. The replace-            are looking at all areas of savings, which include
         ment of incandescent lamps with high-efficiency                lighting conversions, motion detectors, fuel conversion,
         light bulbs in an application where traditional                water conservation, and guest-room occupancy sensors
         lighting quality and ambience can not be compro-              for the HVAC systems. Right now the plan indicates an
         mised might seem a daunting task. The Banff Springs            annual energy savings of $180,000 with a $700,000
         achieved remarkable success in 1995, however, when             capital investment.”
         95 percent of the hotel’ lighting was updated.                The cost of retrofitting is another challenge that
          Randy Fleet, the Chief Engineer at Banff Springs,            Canadian Pacific Hotels has addressed. While a
          reports that it is difficult to discern that fixtures have   retrofit can exceed the cost of a new installation by a
         been updated. “We installed compuctfluorescent lamps          factor of two or three, the cost of upgrading for
          in older lamps that were fitted with globes and used         energy efficiency is offset by lower operating costs.
         flame-shaped     bulbs in our chandeliers. The overall

             An ambitious energy-efficiency program is paying big dividends in the Hotel Vancouver. Eighty percent of
             the hotel’ equipment is now operated centrally through an integrated computer system that monitors
             HVAC functions in hotel rooms and water flows in the swimming pool.
             Existing lighting has been updated, and energy-saving motors have replaced older machinery.
             Steam Guard@ steam traps force steam through a small opening, increasing the temperature of the steam
             significantly and reducing condensation loss. The installation of steam traps in the laundry and heating
             systems has yielded dramatic savings. Steam consumption in the hotel laundry system has dropped over
             70 percent, saving $5,000 per month, and radiator efficiency in hotel rooms has increased 75 percent.
                                                                    Energy Efficiency Case Study-Canadian Pacific Hotels

Guaranteed Savings                                          would pay. Third, contractors can draw upon previous

with Energy Performance
                                                            experience, offer expert advice, and will train hotel staff
                                                            on the operation of the new equipment. Boilers and
Contracting                                                 other complex machinery must be adjusted to work
                                                            with control systems; this must be done by experts.”
There is an innovative solution to implementing
building retrofits where no up-front capital is             Sylvano Cava agrees. “If we draw up an EPC, we know
required and energy savings are guaranteed.                 that the contractor will do a good job and that our
Canadian Pacific Hotels and many other Energy               people will be trained on the new equipment. If the job
Innovators have launched their energy improvement           is not done right, the ESCo will absorb the loss from
projects by using energy performance contracting            savings that did not materialize. Not only does the
(EPC). Under EPC, an energy service company                 EPC approach guarantee savings, it ensures that the
(ESCo) is paid from the savings that are generated          contractor will do a top-notch job. ”
from reduced energy consumption. The client
realizes direct savings once the ESCo has been paid
for its work, and the savings stream is directed
back to the client. Most ESCos will guarantee energy
savings, so if the project yields no savings, the
ESCo will not be paid.
 Chris Whitten is Branch Manager, Home Buildings
 Group, for Honeywell in Atlantic Canada. Honeywell
was the ESCo for a $1 million contract to retrofit
 the Hotel Halifax, the Hotel Newfoundland in
St. John’s, and the Prince Edward in Charlottetown.
 The project will reduce operating costs by an
 estimated $264,000 per annum. Whitten sees several
advantages to EPC. “First, the savings are guaranteed.
. . if the savings are lower than what the contractor
promised, the contractor will pay the difference. Second,
 the contractor can purchase equipment and fittings
from suppliers in bulk, at lower prices than a hotel
                                                                             Energy Efficiency Case Study-Canadian Pacific Hotels

Leadership By Example                                                   Future Plans
A corporate commitment to energy efficiency has                         Initial energy-efficiency upgrades at most of
enhanced the performance of Canadian Pacific                            Canadian Pacific Hotels’ older properties are now
Hotels. The enthusiasm and support of employees                         complete, and opportunities for additional savings
has helped lower the company’s energy costs and                         are being investigated. Proposals for comprehensive
has reduced carbon dioxide emissions. Thanks to                         retrofits of the Palliser Hotel in Calgary, the Empress
a vigorous, c a n - d o a p p r o a c h t o c u t t i n g e n e r g y   Hotel in Victoria, and further work at the Hotel
waste, Canadian Pacific Hotels has emerged as an                        Vancouver are under consideration.
acknowledged leader in the field of conservation.
Many advocacy groups and organizations have
endorsed the company’s commitment to the
environment and have honoured it with awards.

                                                                                                       Cat. no.: M27-0l-769E
                                                                                                       (Aussi disponible en français)

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