Bellevue Hotel Reduces Energy Costs After Major Renovation with Updated Utility Modeling and Contract Strategy

Client Overview: Bellevue Hotel

The Bellevue Hotel, part of The Unbound Collection by Hyatt, is a landmark hospitality property located in Philadelphia, Pennsylvania. Following a major renovation, the hotel’s mechanical systems, equipment, and operating profile changed significantly, creating new electricity and natural gas requirements.

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As a large hospitality property, the Bellevue’s energy costs are directly influenced by its heating, cooling, hot water, mechanical systems, and year-round guest operations. With the renovation changing the building’s energy profile, historical utility usage was no longer an accurate representation of the hotel’s future needs.

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The Bellevue needed a new energy strategy that reflected its post-renovation operations while addressing an expiring electric supply contract, new natural gas requirements, and PECO Energy demand levels that no longer matched the property’s actual usage.

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Challenge: Post-Renovation Energy Usage & Outdated Utility Contracts

The Bellevue Hotel faced several energy-related challenges following its major renovation:

• An expiring electricity supply contract that needed to be reevaluated using the hotel's new post-renovation load profile.

• A newly installed natural gas boiler that created additional natural gas procurement requirements and the need to evaluate third-party supply options against the standard PGW rate.

• PECO Energy contract demand levels that were based on pre-renovation assumptions and were significantly higher than the hotel's actual post-renovation demand.

• Historical electricity and natural gas consumption that no longer accurately reflected the property's new mechanical systems and operating conditions.

• The need for a forward-looking energy strategy that incorporated the hotel's renovated equipment, seasonal usage patterns, and expected future operations.

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Without updating its energy strategy, the Bellevue risked entering new utility contracts based on outdated consumption patterns and continuing to pay unnecessary demand charges.

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Solution: Post-Renovation Energy Modeling & Contract Optimization​

Our energy consulting firm partnered with the Bellevue Hotel to develop a new utility strategy based on the property's renovated systems and expected future operations.

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Rather than relying solely on historical consumption data, we reviewed the hotel's updated mechanical drawings and modeled projected electricity and natural gas usage. This allowed the procurement strategy and utility contract recommendations to reflect the hotel's new equipment, operating requirements, and seasonal load patterns.

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1. Post-Renovation Energy Modeling

• Reviewed updated mechanical drawings from the renovation.

• Modeled projected electricity and natural gas usage based on the hotel's renovated systems.

• Evaluated expected operating conditions and seasonal load requirements.

• Developed a more accurate picture of the hotel's future energy needs.

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2. Electric Supply Procurement Strategy

• Evaluated electricity supply options ahead of the expiration of the hotel's existing contract.

• Structured a seasonal electricity supply contract designed around the hotel's updated load profile.

• Replaced a legacy procurement approach with a strategy based on the property's post-renovation operations.

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3. Natural Gas Procurement for New Boiler Load

• Evaluated the natural gas requirements associated with the hotel's newly installed boiler.

• Sourced and compared third-party natural gas supply options.

• Secured a natural gas contract at a rate below the applicable PGW rate.

• Incorporated the new boiler load into the hotel's overall natural gas procurement strategy.

4. PECO Contract Demand Review

• Analyzed the hotel's actual and projected demand following the renovation.

• Identified that PECO minimum contract demand levels were materially higher than the hotel's updated operating requirements.

• Evaluated the potential impact of maintaining outdated demand commitments.

 

5. PECO Contract Level Reduction

• Worked to reduce the hotel's PECO contract demand levels to better align with post-renovation operations.

• Helped eliminate unnecessary demand commitments that no longer reflected the hotel's actual energy requirements.

• Created a utility structure better aligned with the property's renovated operating profile.

 

Results: A New Energy Strategy Built Around the Renovated Property

The Bellevue Hotel's energy strategy was updated to reflect the way the property would actually operate following its major renovation.​​​​​