How sustainability, smart energy systems and ESG requirements are transforming Greek hotels

In recent years, Greek tourism has been experiencing a period of intense transformation. For decades, the competitiveness of a hotel was determined primarily by location, quality of service and guest experience. Today, a new factor is gaining strategic importance: energy.
Rising energy costs, stricter ESG requirements, commitments to reducing CO₂ emissions and the need for greater operational resilience are fundamentally changing the way modern hospitality infrastructure is designed and operated. Hotels are no longer evaluated solely on the services they provide, but also on their energy and environmental footprint.
International studies show that energy strategy is gradually becoming a core pillar of competitiveness for the tourism industry. Companies that invest in energy efficiency, smart energy management systems and decentralised energy infrastructure are able to achieve significant reductions in operating costs, identify critical energy consumption patterns and increase the overall value of their assets [1], [2].

The Greek reality

A recent survey conducted by the Institute of Tourism Research and Forecasting (ITEP) and the Hellenic Hotel Chamber (HHC) with the participation of 896 hotel units across all categories clearly maps the level of energy maturity and sustainability in Greek hotels. While awareness, target-setting and willingness are high across all unit categories, progress is uneven, particularly in terms of technological maturity.
Given that only 13.4% of Greek hotel units hold an environmental, energy and sustainability certification, and fewer than half hold an Energy Performance Certificate, the sector appears to still be in a transitional stage [3].
The survey results also reveal a marked divide between hotel categories, with four- and five-star properties showing significantly higher maturity in energy upgrade and sustainability solutions. Nevertheless, fewer than 10% of all units have a central building control system, smart energy meters, or dedicated energy management tools and methods.
This picture confirms that the Greek market has enormous potential for energy upgrading, particularly in mid-size and smaller properties that are now being asked to meet international sustainability requirements.
Table 1 – Energy and ESG maturity of Greek hotel units [3]

Energy as one of the most significant operational cost factors

In the hospitality sector, energy is no longer a secondary operating expense. It is one of the most significant factors affecting a hotel’s profitability. The European programme Hotels4Climate, part of the European Climate Initiative (EUIK), studied major energy consumption patterns in hotel units across Europe. Results showed that HVAC systems, premium amenity services and domestic hot water account for the largest share of a hotel’s total energy use. At the same time, the seasonal nature of many properties creates a particular challenge, as major energy loads remain active even during periods of low occupancy. This drives up the energy cost per overnight stay [4].
Figure 1: HVAC systems, premium services and hot water systems account for more than 85% of a hotel’s total energy consumption [4] It is clear, then, that energy strategy is no longer about sustainability alone. It directly affects operating margins, cost stability, asset value and overall business competitiveness.

From energy consumption to energy strategy

This new energy reality is pushing more and more hotel businesses toward a more holistic approach to energy. Upgrading HVAC systems, installing photovoltaics, deploying energy storage systems, building energy management systems, automation and digital energy monitoring tools are no longer future technologies. They are the operational optimisation tools of today.
Recent research confirms that hotel units investing in distributed generation technologies gain meaningful advantages. They are able to meet their energy needs more efficiently and with a reduced environmental impact, which strengthens their market position and delivers an improved guest experience. Reduced dependence on the electricity market also leads to lower operational risk and significant financial benefits [5]-[7].

The data that changes everything

The technological possibilities are now considerable and allow for significant reductions in energy consumption. From the studies of the European neZEH programme (Nearly Zero Energy Hotels) to the most recent research by the University of Athens (NKUA) and its Building Environment Research Group, an impressive energy saving rate of over 70% is presented, reducing consumption from 430 kWh/m² to less than 120 kWh/m². Achieving this, however, requires the right combination of building envelope upgrades, more efficient HVAC systems, renewable energy sources (RES) and energy management automation [8], [9].
Table 2 – Average energy savings in hotel units through targeted interventions [2], [10]-[12]

Sustainability as a driver of commercial value

Perhaps the most significant finding from a wide body of studies is that sustainability now directly affects the commercial value of hotel properties.
International travel agents, investors, booking platforms and financial institutions are integrating ESG criteria into their decisions at an accelerating pace. A hotel with high energy performance, a reduced environmental footprint and modern energy infrastructure becomes more attractive both to investors and to guests themselves.
A notable shift is also under way in guest behaviour. Travellers increasingly seek experiences that combine quality, comfort and environmental responsibility. Sustainability is thus gradually becoming part of the overall hospitality experience, not simply a marketing claim. The future belongs to hotels with smart energy systems. The next decade is expected to be defined by the integration of artificial intelligence (AI) in energy optimisation, the use of predictive maintenance through data analytics tools and sensor networks, and the development of advanced digital platforms.
The hotels of the future will not simply be energy consumers. They will operate as “smart energy ecosystems,” continuously optimising consumption, operating costs and guest experience.

Renel, drawing on its experience in energy infrastructure, photovoltaic systems, energy storage, energy efficiency and smart high-performance buildings, is already seeing this transition accelerate. Market needs are shifting from piecemeal technical interventions to integrated energy strategies that combine engineering, sustainability, digital management and long-term operational optimisation.

The Greek hospitality ecosystem is at a critical crossroads. The businesses that invest early in modern energy infrastructure and sustainable technologies will be the ones that gain a genuine competitive advantage in the new era of global tourism.

References

[1] Wahyuningsih, E., & S., D. (2024). Energy Consumption Analysis and Efficiency Improvements in the Hospitality Sector: A Case Study of Hotel A in Jakarta Tanah Abang. Ranah Research, 7(1), 642-649. https://doi.org/10.38035/rrj.v7i1.1306
[2] Menegaki, A. N. (2025). Powering Down Hospitality Through a Policy-Driven, Case-Based and Scenario Approach. Energies, 18(2), 328. https://doi.org/10.3390/en18020328
[3] ITEP & HHC, Sustainable Hospitality: Measurements and Challenges in Greek Hotels, 2024
[4] Hotels4Climate (2020). Hotel Sector: How to reduce greenhouse gas emissions – Experiences from Greece, Cyprus, Germany and the EU.
[5] Zhao, Y., Zeng, S., Ding, Y., Ma, L., Wang, Z., Liang, A., & Ren, H. (2024). Cost-Benefit analysis of distributed energy systems considering the monetization of indirect benefits. Sustainability, 16(2), 820. https://doi.org/10.3390/su16020820
[6] Abdullah, O., S.S., A., Khan, M. S., Manhas, S., Devprasad, K. D., & J.V., J. (2025). Smart Hotels, Green Future – Exploring the Role of Smart Technology in Reducing Environmental Impact in Hospitality Sector. 2025 International Conference on Technology Enabled Economic Changes (InTech), 647-652. https://doi.org/10.1109/intech64186.2025.11198480
[7] Maharjan, K., Zhang, J., Cho, H., & Chen, Y. (2023). Distributed Energy Systems: Multi-Objective Design optimization based on life cycle environmental and economic impacts. Energies, 16(21), 7312. https://doi.org/10.3390/en16217312
[8] neZEH Project, Nearly Zero Energy Hotels in Europe, European Commission Initiative.
[9] NKUA. (2025). Hotels can reduce energy consumption by up to 72% – Building Environment Research Group, NKUA. https://hub.uoa.gr/ta-xenodocheia-boroun-na-meiosoun-tin-energeiaki-katanalosi-mechri-kai-72-omada-erevnon-kthriakou-perivallontos-ekpa/
[10] Akbulut, L., et al. (2025). A Systematic Review of Building Energy Management Systems (BEMSs): sensors, IoT, and AI integration. Energies, 18(24), 6522. https://doi.org/10.3390/en18246522
[11] Xiang, Q., et al. (2019). Reducing Carbon Dioxide Emissions through Energy-saving Renovation of Existing Buildings. Aerosol and Air Quality Research, 9(12), 2732-2745. https://doi.org/10.4209/aaqr.2019.10.0503
[12] Salem, R., et al. (2018). Comparison and Evaluation of the Potential Energy, Carbon Emissions, and Financial Impacts from the Incorporation of CHP and CCHP Systems in Existing UK Hotel Buildings. Energies, 11(5), 1219. https://doi.org/10.3390/en11051219