Rising costs associated with inflation has reignited sustainability efforts. News in this morning that citizenM has secured a €480 million sustainability-linked loan, which incentivises the company to achieve low interest rates by hitting ESG targets, is a prime example.
Given citizenM’s reputation within the industry, it marks a significant step towards pushing sustainability to the top of hoteliers’ priority list. Despite cashflow issues arising from the cost of living crisis – particularly hikes in labour wages, utility bills, and consumer spend withdrawing – hotels must explore new routes to protect bottom line.
The journey to net zero involves investment in the right infrastructure and technologies to reduce CO2 emissions amongst other environmental considerations. And if HSBC, Aareal and ABN AMRO – the heavyweight consortium behind citizenM’s funding – are committed to supporting the cause, it will prompt other hotel groups to seek out and adopt similar partnerships.
Economic pressures may render it unfeasible for independent hotels to progress with sustainability plans, but I suspect citizenM’s announcement will encourage hoteliers to think differently about future proofing their business.