Hotels warned to measure energy performance before mandatory disclosure arrives
Dotz Nano CEO Nati Harpaz says hotels should establish a verified baseline, optimise existing systems and invest where evidence shows the strongest return.
Australian hotels are moving rapidly towards measured energy performance, with NABERS reporting that 140 hotels held Energy ratings in FY2025–26 and the number of rated hotels increased by 50 percent over the past year.
The number of guest rooms covered by NABERS ratings has also risen by 75 percent since 2023. NABERS says minimum standards for rated hotels are likely to be set by 2026–27, while hotels are expected to be included in the planned expansion of the Commercial Building Disclosure Program.
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NABERS-rated properties are now recognised on Google Travel, Expedia and Booking.com, and Australian Government employees are required to consider NABERS Energy ratings when booking accommodation.
Dotz Nano CEO Nati Harpaz says the shift means measured energy performance is becoming a commercial issue for hotel owners, rather than simply a sustainability initiative.
“Hotels are moving into an environment where owners, corporate customers, booking platforms and potentially regulators will expect credible evidence of energy performance,” Nati says.
“A sustainability target is not the same as a measured result. Hotels need to understand how their buildings are actually performing and where energy is being wasted before deciding which projects deserve capital.”
Measure before upgrading
Hotels are complex, always-on buildings. Heating, ventilation and air conditioning, hot-water systems, kitchens, laundries, pools, pumps, lighting and controls can operate across long hours and changing occupancy levels.
According to Nati, a hotel can invest heavily in solar, electrification or replacement equipment without addressing inefficient schedules, poorly coordinated controls or plant operating beyond actual demand.
“The first question should not be, ‘What equipment should we buy?’ It should be, ‘Where is the energy going?’” he said. “Measurement creates the baseline. Once operators can see when and where consumption occurs, they can identify avoidable waste, optimise existing systems and make better decisions about larger upgrades.”
This approach is consistent with NABERS guidance, which encourages hotels to establish a verified performance benchmark and use the results to target efficiency measures and future investment.
Commercial pressure is increasing
The growth in hotel ratings is being driven by more than environmental commitments.
A recognised energy rating can influence government procurement, corporate accommodation requests, asset performance and visibility on major booking platforms. NABERS says around 88,530 hotels and serviced apartments are expected to be considered as part of expanded mandatory energy disclosure.
Nati says operators that wait for formal disclosure requirements may lose time that could be used to improve performance and prepare their properties.
“Measurement should not begin when disclosure becomes mandatory. By then, hotel owners should already know their baseline, their largest sources of waste and which improvements can deliver the strongest operational return,” he said.
“For owners, this is ultimately about protecting margins and asset value. Every unnecessary unit of energy is a cost that does not improve the guest experience.”
Optimise first, then invest
Nati says some opportunities may be addressed through operational changes before major equipment is replaced. These can include correcting temperature set points, refining operating schedules, sequencing plant more effectively and matching equipment use to occupancy and demand.
Once a reliable baseline has been established, larger projects can be assessed against expected and verified results. “Hotels have many competing capital priorities, from refurbishments and guest amenities to maintenance and compliance,” he added.
“Energy projects need a clear business case. The practical sequence is to measure first, optimise what is already there, and then invest where the evidence shows the strongest return.”
Performance-based funding models may also help owners proceed with suitable projects by linking project economics to measured savings rather than requiring every improvement to compete for upfront capital.
Related AccomNews story: From energy drain to NABERS gain: Optimising sustainability for hotels
Nati says the rapid adoption of NABERS ratings shows the hotel sector is already moving from broad commitments towards verifiable performance. “The direction is clear. Energy performance is becoming visible, comparable and commercially relevant.
“Hotels that start measuring now will be in a stronger position to reduce costs, respond to disclosure requirements and make sustainability investment decisions with evidence.”
