Strategic Energy Management: A Three Tiered Approach

1. Strategic Energy Management: A Three Tiered Approach Randy Gaines, C.E.O.E. White Lodging Services AH&MA Annual Conference and Lodging Expo April 5, 2001

2. Portfolio • 69 Hotels in eight states (IN, IL, TX, FL, CO, MI, UT, KY) • 8,000+ Rooms • Full Service and Limited Service brands

3. Energy Management Mission Statement To increase profits, prevent pollution, and enhance the indoor environment for guests and employees through cost-effective strategic energy management.

4. Growth Since First Opening Number of Hotels Increase of 4.5 MSF to date

5. Energy Management Strategy Tier III Asset Optimization Tier II Commodity Purchasing Tier I Utility Data Management

6. Energy Management Strategy Tier I Utility Data Management

7. Utility Data Management Gas Bills TEG Process Bills Enter Usage & Cost Information Electric Bills Audit & Validate Bill TEG Database Performance Reports Resolve Billing Discrepancies

8. Utility Data Management • Perform Detailed Analysis of Each Utility Account • Analyze utility rate, implement most inexpensive option • Investigate all findings • faulty meters • missing water meters • late fees • double billing

9. Utility Data Management • Utility Errors and Faulty Equipment • Faulty natural gas meter identified - recovered overpayment of $15,482! • Faulty water meter identified - recovered overpayment of $32,540! • Hotel billed for two water accounts, one of which was neighboring hotel-recovered overpayment of $28,230!

10. Utility Data Management • Utility Errors and Faulty Equipment • Identified oversized water meter - downsized water meter and implemented lower rate resulting in annual savings of $5,600! • Identified gradual upward trend in water consumption and leak in irrigation system camouflaged by clay soil - secured utility refund of $5,200 due to sewer exemption These savings alone total over $100,000!

11. Energy Management Strategy Tier II Commodity Purchasing

12. Commodity Purchasing • Monitor State Utility Commissions • Monitor Federal Legislation • Interact With Utilities To Keep Abreast of Pilot Programs • Interact with Suppliers To Keep Abreast of Pilot Programs State Utility Commission Federal Regulators TEG Electric Utility Natural Gas Utility Suppliers

13. Commodity Purchasing Contract • Negotiate Contract Terms & Conditions • Process All Required Utility Forms & Contracts • Monitor Energy Futures Market • Leverage Purchasing Power of White Lodging and TEG

14. Energy Management Strategy Tier III Asset Optimization

15. Asset Optimization Prioritize Utility Data Management Asset Optimization Activities Data management enables the effective prioritization and validation of asset optimization activities • High Impact Items • Daily Meter Readings • Peak Control • Equipment / Technology Changes • Occupancy Sensors • Ozone Laundry • Lighting • Energy-efficient Electronics • Energy-efficient Appliances • Quarterly Reports • Property Rankings • PAR and POR Analysis • Cost per Unit of Commodity Validate

16. 2001 Performance Metrics Utility Comparison Electric Hotel X Hotel Y

17. 2001 Performance Metrics Utility Comparison Electric Natural Gas Hotel X Hotel X Hotel Y Hotel Y

18. 2001 Performance Metrics Usage and cost will be analyzed on a per available room, per occupied room, and per square foot basis. Usage

19. 2001 Performance Metrics Usage and cost will be analyzed on a per available room, per occupied room, and per square foot basis. Usage Cost

20. High Impact Items • Lighting • All lights off when unoccupied • TCP 30 watt Bulb with 36 watt Ballast • Exterior lighting, profiler system or photocell properly placed • Sport courts and storage rooms, equipped with timers for auto-shutoff • PTAC • Units off when 55 - 85 F outside • Settings for unoccupied rooms determined by Maintenance Manager daily • Filters cleaned quarterly • Power wash coils every two years • Associates do not pre-cool or pre-heat rooms

21. High Impact Items • Water Heater • Remove all deposits from tank • Burner maintained with bright blue flame • Ensure no airflow is restricted • Verify water temperature is 110 degrees at the furthest room • Laundry • Only full loads • Done in off peak hours • Keep drier lint screens clean - check after every load

22. High Impact Items • In Room Water Equipment • 2.5 gallon per minute shower heads installed • Faucet arreators installed, 1.5 gallon per minute • 1.6 gallon per flush toilets installed when replacement occurs • Dye test toilets annually to ensure no water leaks • Evening Energy Walks • Night Auditor • Self Audit • Energy Absolutes

23. Daily Meter Readings • Daily meter reading log • Maintenance manager to complete each day • Readings to be taken at same time each day • Computerized monthly meter reading spreadsheet • GM will have daily information transferred to spreadsheet • Daily occupancy column will also be updated • Monthly reporting • Monthly spread sheets forwarded to Regional Directors of Housekeeping and Maintenance • Copies will be kept at each property in the Life Safety Manual under new “Energy Usage” tab

24. Energy Committees • Line item on accountability meetings, once a month • Discuss: • Findings of investigations and reports • Successes, Projections • Opportunities for employee involvement

25. Peak Control Strategies • Peak usage is 7:00 to 9:00 a.m., 6:00 to 10:00 p.m. • Key areas to control peak • No laundry before 9:00 am • Ensure PTACS for all unoccupied rooms are shut off during peak times • Common area thermostats are set back, upgrade to electronic thermostats for auto set back capability • In kitchen area, shut off any unneeded electrical equipment during peak hours • Educate staff and get them involved in peak control

26. Demand Curve October, FFI Peak Day, Thursday October 5, 2000 determines bill for the entire month Average Weekday Average Weekend

27. Usage and Demand, FFI December 00 October 00 November 00 January 01 February 01

28. Implemented strategic energy management plan across portfolio Achieved annual savings of $100,000+ while increasing portfolio by 31% Leveraged energy performance efforts through energy alliances Involved staff in education, training, and implementation Accomplishments

29. Maintaining energy savings during growth Ensuring communication between housekeeping and engineering staff Receiving buy-in from general manager and staff Challenges