← Back to Blog
Hotels & Hospitality · B2B

How Hotels Are Cutting Energy Bills by 40%

By Digitley Team
March 2026
8 min read
AI

Quick Answer

Indian hotels reduce energy costs by 35-40% using smart automation to control HVAC and lighting in unoccupied rooms. By integrating with the property management system, Digitley automatically sets ACs to standby upon checkout, eliminating waste. Additional benefits include Digitpass keyless entry, which reduces front-desk queues and improves guest satisfaction scores.

Verified by Digitley Experts
Updated March 2026

The average Indian hotel spends between 15% and 25% of its total operating costs on electricity. For a 40-room boutique property in a Tier 1 city, that can mean ₹8–15 lakh per year on power alone — before you've paid a single rupee of staff salary or food costs.

And a significant portion of that electricity is being wasted on empty rooms.

The Three Places Hotels Waste the Most Energy

1. HVAC in Unoccupied Rooms

This is, consistently, the largest source of energy waste in hospitality. Air conditioning left running in a checked-out room can consume 1.5–2 kWh per hour. Automation solution: when a room is checked out in the PMS, the AC is automatically set to an energy-saving standby mode.

2. Lighting in Common Areas

Hotel lobbies, corridors, and stairwells are typically lit at the same brightness at 2AM as they are at 2PM. Motion-sensor controlled lighting can reduce common-area lighting energy consumption by 40–60% without any compromise on guest experience.

3. Room Appliances Left On

Minibar refrigerators running in vacant rooms, geysers heating water for checkout rooms — individually small numbers that multiply across dozens of rooms into significant costs.

38%
Average energy cost reduction in first quarter
₹1.8L
First-year electricity saving for typical 40-room hotel
14 mo
Typical payback period on installation

The Check-In Queue Problem

Digitpass eliminates front-desk queues entirely. When a guest books, your system generates a Digitpass mobile key sent via SMS or WhatsApp. The guest walks directly to their room, taps the link, and the door opens. Zero front-desk interaction.

"We went from 45-minute check-in queues on weekends to a guest receiving their Digitpass while their cab is still on the way. Our Google rating went from 3.8 to 4.9."

— General Manager, The Sahara Suites, Pune

Get a custom ROI estimate for your property

Tell us your room count, current electricity bill, and occupancy rate. We'll give you a realistic projection within 24 hours.

Talk to Hospitality Team →