Impact of LEED and Energy Star Certifications on RevPAR

This paper examines the topline performance of a cross-section of hotels in the United States from 2009-2013 to test whether Eco-labeled (LEED or Energy Star, in particular) properties generated revenue performance premiums over non-certified hotels. In other words, does it pay to acquire these labels? Regressions included regional, class, chain scale, size, and location controls. Custom comparable clusters were also separately tested. Results show that LEED labeled hotels experience higher ADR but lower occupancy rates, resulting in a statistically insignificant difference in RevPAR. Energy Star labeled buildings consistently showed higher occupancy.