Case Study: California Hotel Cuts HVAC Energy Use by 39%

Brand Overview
Courtyard by Marriott, part of Marriott International, operates more than 1,100 hotels worldwide. Like many properties in California’s competitive hospitality market, hotels must balance high operating costs with strict sustainability commitments.

Challenge
Hotels are among the most energy-intensive commercial buildings in California, with HVAC systems accounting for a large share of electricity costs. Rising utility rates and new state sustainability regulations created an urgent need to improve energy efficiency—while still meeting corporate financial requirements for strong payback on capital projects.

At this site, a set of rooftop HVAC units (RTUs) serving common areas were identified as prime candidates for upgrades.

Solution
A Smart HVAC solution was implemented to bring the hotel’s rooftop units into a networked, remotely monitored system. The upgrade included:

• Fan Variable Frequency Drives (VFDs) – Adjust fan speeds to match demand and reduce fan energy.

• Advanced Economizer with Changeover – Reduce compressor runtime by maximizing the use of outside air.

• Ventilation Pre-Cooling – Utilize cooler outside air to reduce compressor workload.

• Demand Control Ventilation (DCV) – Adjust outside air intake based on occupancy, cutting heating and cooling loads.

• Building Automation System (BAS) Integration – Enable scheduling, set point adjustments, and performance tracking.

• Remote Access Dashboard – Allow staff and service providers 24/7 access to monitor and optimize performance.

Results

• 39% Reduction in HVAC Energy Use across upgraded units.

• Payback in Under 3 Years, accelerated by California utility rebates.

  • Incentives were available from PG&E, Southern California Edison (SCE), and SDG&E, covering portions of the cost of VFDs, economizers, and DCV systems.

• Lower Operating Costs year over year, verified through the web-based platform.

• Compliance with California Title 24 ventilation and energy standards through continuous monitoring and reporting.

• Scalable Platform for future integration of water heating, kitchen exhaust fans, and other building systems.

• Reduced Carbon Footprint, supporting both Marriott’s corporate sustainability targets and California’s climate action goals.

Key Takeaway
By adopting a Smart HVAC strategy, California hotels can reduce HVAC energy use by nearly 40%, lower operating costs, stay ahead of regulatory requirements, and leverage utility rebates to achieve rapid payback.