How Smart Hotels Leverage IoT Tech to Optimize Energy Consumption, Reduce Waste and Boost Guest Loyalty

By embedding sensors, software, and connectivity into physical devices, IoT technology transforms hotels into smart properties capable of balancing energy efficiency, regulatory compliance, and exceptional guest experiences.
By Fabio Zaniboni, Founder and Chief Vision Officer of BubblyNet - 12.9.2024

As sustainability becomes a key metric for customers and governments alike, the hospitality industry is entering a transformative period. Increasing regulatory demands from cities and states, focused on reducing energy consumption and carbon emissions, have put added pressure on hotels and similar establishments to adapt quickly. According to a survey conducted by the American Hotel & Lodging Association (AHLA), over 90% of hotels reported feeling increased pressure to focus on sustainability initiatives, with customers driving 75% of that demand.

For the hospitality industry, the pressing question is whether these mounting challenges can be harnessed as opportunities for positive change, cost savings, and guest loyalty. The integration of Internet of Things (IoT) technology offers a powerful pathway to achieving these goals. By embedding sensors, software, and connectivity into physical devices, IoT technology transforms hotels into smart properties capable of balancing energy efficiency, regulatory compliance, and exceptional guest experiences.

Feasibility and Property Conditions

Successfully integrating IoT technology into hotel infrastructure starts with selecting the right solutions tailored to specific operational goals. IoT systems that leverage edge computing— where data is processed locally at the device level—minimize network traffic and reduce reliance on cloud services. This approach prevents bottlenecks and unexpected costs associated with Wi- Fi infrastructure upgrades, ensuring that the network remains robust without straining resources.

Conversely, a poorly planned IoT rollout can lead to ballooning costs that extend beyond the initial project scope. Hotels must ensure that IoT devices are compatible with their existing network capabilities and that any potential adjustments are well understood before implementation begins.

Adopting IoT solutions often requires physical modifications to existing infrastructure. Particularly for wired systems, this may involve the installation of additional cabling, network switches, and servers, potentially necessitating dedicated control cabinet space. Assessing the building’s current capacity and available space is critical to avoid unanticipated renovations and disruptions to hotel operations. This makes pre-installation assessments essential to avoid budget overruns and prolonged installation timelines.

Retrofitting an older hotel building for modern IoT technology presents its own set of obstacles, ranging from structural limitations to health and safety concerns.

Older structures may contain hazardous materials such as asbestos and lead paint or fall under strict historical preservation regulations. Making invasive changes to walls may be impossible, requiring innovative solutions. For these scenarios, battery-powered switches, wireless receptacles, and plug-in controllers offer energy-saving capabilities without altering the building’s physical integrity.

Hotels with concrete slab ceilings face specific challenges when running new wiring. Wireless, battery-powered motion sensors provide an effective alternative, requiring minimal installation and avoiding costly structural alterations.

Implementation

Wireless IoT solutions are typically more scalable than their wired counterparts, making it easier to adapt to evolving energy standards and customer needs. Wireless systems also have the advantage of faster and less disruptive installations, reducing costs and downtime.

Seamless integration with existing Property Management Systems (PMS) is another essential consideration. A comprehensive IoT platform should offer Application Programming Interfaces (APIs) for both local and cloud-based PMS systems, ensuring streamlined operations and a cohesive guest experience.

Protecting guest data and hotel operations is paramount when deploying IoT solutions. Hotels should prioritize systems that offer robust security measures. IoT systems based on the latest Bluetooth® MESH standard provide higher levels of security compared to older Bluetooth® BLE systems. Limiting external network access and keeping most information local also enhances security.

For systems requiring remote access, hotels should consider solutions that enable quick disconnection from the internet when remote service is unnecessary, offering an added layer of protection against cyber threats.

Balancing Comfort with Efficiency

Compliance with energy regulations—such as time-switch controls, occupancy sensors, and automatic shutoff systems—is a must. However, this compliance should not come at the expense of guest satisfaction.

While basic motion sensors can conserve energy by turning off lights and adjusting temperatures in unoccupied rooms, they can inadvertently disrupt guest comfort. Advanced motion sensors with sleep mode recognition provide a solution, ensuring lights and HVAC systems operate optimally without disturbing guests.

Guest awareness and education on hotel sustainability programs are essential and play a key role in creating a sustainable guest experience. Guests can leave their rooms with lights and appliances on, knowing that the room control system will automatically turn them off, conserving energy. Additionally, they can rest assured that they will not be disturbed during their stay, as hotel staff are automatically informed of the room’s occupancy status.

Installation Costs and ROI

Installation costs for IoT systems can be substantial, particularly in existing buildings. Selecting the right technology is key to managing these expenses while preserving guest satisfaction.

Wireless systems are generally more cost-effective and less labor-intensive than wired ones, as they do not require extensive cabling or significant structural changes. Wireless mesh networks, which eliminate the need for central hubs, further reduce complexity and installation costs. Pre- configured IoT devices can also drive cost efficiencies. These systems are ready to install upon delivery, reducing the need for costly on-site programming, shortening installation timelines, and minimizing the risk of errors.

With typical energy and operational savings ranging between 15% and 35%, the Return of Investment (ROI) of many wireless IoT implementations is 18 months or less.

In conclusion, the right IoT solution not only ensures compliance with energy regulations and reduces environmental impact but also enhances guest comfort and experience. By embracing these technological advances thoughtfully, hoteliers can transform new sustainability mandates into opportunities for innovation, guest loyalty, and long-term cost savings. With smart planning, sustainability becomes more than a regulatory obligation—it becomes a driver for enhanced guest satisfaction and operational efficiency.

Fabio Zaniboni, Founder and Chief Vision Officer at BubblyNet, is a technology leader with over two decades of experience in sustainable innovation, digital transformation, and the Internet of Things (IoT), particularly in the lighting industry. His career, including key roles at Emerson Electric and Comau Robotics, has provided him with a global perspective and deep market insights. Leading an R&D team, Fabio focuses on integrating advanced technologies to drive energy efficiency and sustainability in buildings. His research on how factors like light, sound, and air affect well-being is driving smarter, more sustainable building solutions. Known for transforming complex technologies into scalable applications, Fabio partners with global organizations to foster digital innovation and sustainability in the built environment. 

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