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MARKETS
CHOPPY
STRATEGY
STEADY
SMALL
SAVINGS
IMPACT
HUGE
Energy Hedging for Hotels & Portfolios
Energy hedging offers a proven, capital-free alternative for hotels to cut energy costs by 10–20% and avoid price volatility without infrastructure upgrades.
At a 400,000 square-foot hotel in Chicago using 5,640,000 Kilowatt Hours annually, the effect of a hedging strategy can be significant.
Key Performance Indicator
Base is Rate (KwH)
Electricity Cost
Impact on NOI
Impact on Asset Value @8% CapRate
Utility
$0.167
$941,880
-
Hedging
$0.150
$846,000
$95,880
$1.2 million
To qualify, a hotel or portfolio should consume at least 1.7 million kWh of electricity (typically 125,000+ SF) or 200,000 therms of natural gas annually.
NO TRICKS
ONLY
TREATS
Volatility Won’t Scare Your Budget
Energy prices can swing dramatically—up to 30% or more—making hotel operating costs unpredictable and difficult to manage. Hedging lets you lock in rates, shielding your property from these sudden spikes. By stabilizing energy expenses, hedging reduces exposure to market volatility, ensures more consistent cash flow, and allows you to plan with confidence—without major capital outlays or infrastructure changes.
At a 400,000 SF hotel in Chicago consuming 5,640,000 kWh annually, a 30% swing in energy prices could dramatically impact operating costs.
Key Performance Indicator
If Market Spikes 30% (Kwh)
Electricity Cost
Impact on NOI
Impact on Asset Value @8% CapRate
Utility
$0.217
$1,223,880
($282,000)
Hedging
$0.150
$846,000
$95,880
$4.7 million
THAN STARBUCKS
EASIER
Process Clarity with Expert Guidance
We make the process simple and transparent. From the first conversation to implementation, you’ll always know what’s happening, why it matters, and what it means for your business. Our role is to guide you step by step, so nothing feels complicated or hidden.
Our Process:
Step 1. Share Data – Customer provides 1–2 years of utility history (LOA).
Step 2. Define Goals – Fix pricing, hedge term, flexibility needs.
Step 3. Get Quotes – Real-time bids from up to 10 approved suppliers.
Step 4. Shortlist & Select – We narrow to 2–3 best-fit options; customer picks.
Step 5. Execute – Confirm pricing, sign, and new supplier begins next billing cycle.
GOALS
YOUR
OUR
GUIDANCE
Professional Advice for Every Dollar
Our Commodity Management team's primary goal is to help hotels reduce and hedge against rising electricity and gas rates. Many hotels don’t realize they have real choices in how they buy electricity and gas. With utilities dominating the market and regulations varying by region, it’s easy to feel locked into a single provider.
We change that by leveraging decades-long relationships with North America’s largest suppliers to unlock competitive options tailored to your needs.
Our platform makes energy procurement simple—offering insights, pricing transparency, and solutions that cut costs while reducing risk. Every hotel is unique, and we help you take control, optimize resources, and improve both profitability and sustainability.
FOR
TAKEOFF
READY
Let's Get Started!
Fill out the quick form below to get started—our team will guide you step by step and show exactly how much you can save. It only takes a minute, and it’s the first step toward smarter and predictable energy costs.