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Royal Hospitality Services, Inc.

Royal Hospitality Services, Inc. Boston Green Tourism September 16 th , 2010. Overview. What do we do? Why do we do it? Comparison: Hotel On-Premise Laundry or Royal Where are the cost-savings? How do these savings impact the environment?. History. In operation since 1926

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Royal Hospitality Services, Inc.

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  1. Royal Hospitality Services, Inc. Boston Green Tourism September 16th, 2010

  2. Overview • What do we do? • Why do we do it? • Comparison: Hotel On-Premise Laundry or Royal • Where are the cost-savings? • How do these savings impact the environment?

  3. History • In operation since 1926 • Royal Institutional created in 1990 through merger – focus on Healthcare market. • Royal Hospitality created in 2005 after sale of healthcare to focus on Hotels. • Starwood is first to outsource laundry for all regional hotels after 2 year due diligence

  4. What do we do? • Linen & Terry for both Rooms and F&B • Daily Pick-up with 24 Hour Turnaround • From Somerville – Service all of New England

  5. Royal Truck Royal Truck Internal Transfer Carts Automatic Transfer Customer Carts Internal Transfer Carts

  6. 2005 2006 2007 2008 2009 2010 est.

  7. Outsourcing Laundry: Need for Viable Option • Proliferation of Outsourcing of non-core functions • Need to maximize revenue-generating space • Emphasis on cost-containment • Utility volatility post-Katrina • Rising Labor/Benefit costs

  8. What’s to love about Laundry? • Challenges: • Staffing • Machinery breakdowns • Inconsistent quality and shading • Peaks and valleys (feast or famine) • Fire concerns and safety risks • Summary: Expensive and Aggravating

  9. Example: Utility Consumption at a 400 Room Hotel • 75% Occupancy • 12lbs/Occupied Room • 1,314,000 lbs Annually • 3.5 Gallons of Water per lb of Laundry • 4.6 Million Gallons of Water! • $0.03 per pound of Laundry for Water/Sewer • $0.08 per pound of laundry for gas/electric

  10. Different Machinery at Hotels • Age and Efficiency of your Machinery • Whether Hotel operates an ironer • How full Machinery is Loaded • Cost anywhere from $0.08-$0.11 per pound for gas/electric

  11. Royal: Advanced Machinery = Green Benefits • Continuous Batch Washers (CBW) -- guarantees chemistry, temperature and water levels • 18 Min Wash Cycle • Installation of $1.4 Million Water Reuse system March 2009: • 70% Less Water • 1 Gallon > .3 gallons of water per lb. • Recycled water holds temperature, uses less gas • Wash Water remains chemically “charged”, less detergent needed

  12. Royal Machinery cont’d • Prior to washer>dryer transfer excess water “squeezed” out of Laundry under 400 lb press • Reduces amount of dryer time – 20-25 minute cycle • Linen: Not fully dried prior to ironing • Terry: Fully dried (but not over-dried!)

  13. Environmental Benefits • 39 Hotels Serviced in Boston/Cambridge • Over 38 Million lbs processed annually • We estimate .3 gallons of water used per lb • Hotel Machinery uses 2-3.5 gallons of water • Conservative Savings: 2 Gallons per/lb • 76,000,000 Gallons Annually Savings: • $2.28 Million in Water and Sewer • $1.9 Million in Gas and Electric

  14. Not Perfect…

  15. Thank YouBoston Green Tourism!!! Questions? David Noble dnoble@royalhsi.com 617.629.4103

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