Working on a 85-hotel portfolio and it's like every location is on a completely different rate structure. Chicago properties on ComEd have totally different demand charge calculations than the Florida locations on FPL. Anyone have experience with hospitality audits where the rate schedules vary this much?
Hotel chain audit - different demand charges everywhere
Hotels are tricky because they often get put on whatever rate the utility recommends during construction, which isn't always optimal. We found several Hampton Inns in Texas that were on industrial rates when they should've been on commercial. Saved them about $800/month per location once we got them switched.
Ed's right about the rate classifications. Also watch for seasonal patterns - hotels in tourist areas often have weird billing cycles that don't match typical business usage. We caught a Marriott property in Orlando that was being billed for peak summer rates in January.
Great points both of you. I'm seeing similar issues with rate classifications. Going to focus on that angle first before diving into the demand charge calculations. Thanks for the direction!