A fine choice: in March of 2004, Starwood Hotels was looking for ways to mitigate the penalties imposed by the Southern California Air Quality Management Division for a boiler at its Westin hotel in Long Beach that failed to meet rigorous state standards. This is the story of facing three retrofit choices and choosing the high road to lower NOx

Engineered Systems, May, 2006 by William L. Rodenberg

In many cases, decisionmakers approach their mechanical systems as an isolated component of the facility. Mechanical issues are resolved with no consideration for the impact on energy expenditures; energy management issues are considered with no regard to their positive impact on the rest of the facility. In reality, guests do not make a distinction between satisfaction with their hotel stay and the availability of a hot shower in the morning.

William L. Rodenberg, CEM

FIGURE I. Cost benefit analysis used to determine
the course of action for the Long Beach Westin.

ENERGY CONSERVATION MEASURE COST BENEFIT ANALYSIS
presented by

Energy Management Strategies, Inc.
Project Development and Construction Management

Project                         Savings      Annual         IRR:
Development:                Uncertainty:    Savings:

William Rodenberg, CEM                10%    $36,643          32%

IRR Calculations

                              Investment     Savings     Balance

Year 1                          -$298,000    $186,643   -$111,357
Year 2                                        $36,643    -$74,714
Year 3                                        $36,643    -$38,072
Year 4                                        $36,643     -$1,429
Year 5                                        $36,643     $35,213
Year 6                                        $36,643     $71,856
Year 7                                        $36,643    $108,498
Year 8                                        $36,643    $145,141
Year 9                                        $36,643    $181,783
Year 10                                       $36,643    $218,426
Year 11                                       $36,643    $255,068
Year 12                                       $36,643    $291,711
Year 13                                       $36,643    $328,353
Year 14                                       $36,643    $364,996
Year 15                                       $36,643    $401,638

Note: The first year's savings figure includes $150,000 in
avoided capital costs.

Implementation Costs

Construction Costs                262,000
Project Development &
Construction Management            36,000
Total Project Cost                298,000

Note: Cost Uncertainty                 0%

Savings Summary

Current Annual Gas Cost        $63,176.74
Efficiency Improvement                58%
Projected Annual Gas Cost         $26,534
Savings                           $36,643

Feasibility

ECM Feasibility                      100%