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AD1 Global is a leading hospitality group with 15 properties under management and six more in development in the Southeast U.S. AD1 Global growth has been fueled by its strategy of acquiring and renovating existing hotels, with an eye towards becoming the best and most profitable hotel company in the universe.
AD1 Global has been expanding and acquiring new properties, and together with ONPEAK Energy has designed a strategy to be more sustainable and help with the reduction in emissions by implementing some changes to the assets they manage.
ONPEAK Energy is a Florida-based Efficiency Consultancy Company that works with building owners to evaluate, install, and help finance investments in energy-saving equipment. For Royale Parc Suites, after assessing the property, ONPEAK proposed to update the room’s PTACs that were outdated and install smart room temperature controllers in all rooms.
Royale Parc Suites is a complex with 244 suites; each one is either one or two-bedrooms suites. The whole complex has 555 PTACs.
After assessing the property, ONPEAK and AD1 agreed to replace 115 PTACs out of the 555, selecting the oldest ones and those that were more likely to incur in maintenance expenses. The new PTACs are all covered with a 5-Year Warranty for parts and labor.
With the PTACs upgraded, the property was able to install a new smart thermostats system. Each thermostat is equipped with a high accuracy occupancy sensor, can save up to 1800 kWh per PTAC every year; moreover, they are connected to a centralized AC system that allows the property to control these units remotely.
With the solution presented by ONPEAK, Royale Parc Suites will save $5,750 per year in PTACs maintenance and $89,910 in electricity savings thanks to the room’s temperature control system.
To avoid a negative impact in the cash flow, ONPEAK offered a technology subscription model, with this structure the Hotel has no operational risk, the monthly payment is below the savings generated by the new equipment, and 100% of the payment is an operating expense.
With the new PTACs and smart room controls, Royale Parc Suites achieved over to $95,000 in annual savings. The project gets repaid by savings created, and the Hotel improved its look and 100% of the payment became OPEX instead of CAPEX. The new system provides further and valuable information regarding the room occupancy and temperature statistics, helping the property’s manager to make informed choices.
For AD1 and Royale Parc Suites, upgrading their room’s AC system with ONPEAK Energy was a safe play and risk-free project.
