David Dunn, Sales Director North Europe for Carrier RLC EMEA.
Explores the benefits hotels can experience by upgrading to Variable
Refrigerant Flow (VRF) systems and highlights how making the leap
can deliver both short- and long-term return on investment (ROI).
The hotel industry is at a crossroads in a world increasingly conscious of energy footprints and bottom lines. Familiar, traditional heating and cooling systems often struggle to deliver the dual promise of efficiency and guest satisfaction. VRF technology, however, offers outstanding potential but is frequently dismissed due to higher initial upfront costs.
The issue of focusing on capital expenditure (CAPEX) obscures a more nuanced reality. While the initial investment in VRF systems can be higher than legacy options, the short-term ROI is usually immediate, thanks to reduced energy use. Nor is the long-term ROI as prolonged as it might appear, typically unfolding over 3 to 7 years. This ROI is driven by a potent combination of optimised energy performance, improved guest experience, and enhanced comfort – and accelerated by potential government incentives.
The False Economy
It’s indisputable that VRF systems often have a steeper upfront price tag. This barrier can deter hotel decision-makers, leading them to cling to less efficient, seemingly more budget-friendly alternatives. Yet, this approach overlooks the long-term operational savings (OPEX) that VRF technology unlocks. In other words, it’s a false economy.
The Mechanics of Savings & Comfort
The key to understanding VRF cost benefits and their impact on guest comfort lies in their core technology. Unlike centralised systems that indiscriminately heat or cool entire buildings regardless of occupancy, VRF systems use variable refrigerant flow. This allows precise adaptation to changing conditions – whether a room’s temperature fluctuates or a whole floor empties. By consistently providing the exact amount of heating or cooling needed, VRF systems minimise energy waste significantly and ensure each space stays comfortable. Consequently, properly optimised VRF systems can lead to average energy cost reductions of ~20-30% or more1 (vs. variable air volume (VAV) systems).
The Value of VRF System Optimisation
Poor VRF installation is the bane of good VRF performance. That’s why thorough optimisation is crucial to reaping the significant benefits of a VRF system. This involves two key considerations:
- System Design: Proper VRF system design, tailored to the hotel’s specific layout and usage patterns, maximises efficiency from the outset. This includes load calculations, equipment sizing, piping layout, and zoning choices. These decisions maximise efficiency and ensure no capital is wasted on a system that’s too big for the space.
- Advanced Controls: Intelligent VRF system controls enable granular temperature adjustments, scheduling, and automated setback features. These controls ensure the hotel delivers the desired comfort level while minimising energy waste during unoccupied periods. They can even synchronise with room check-in and booking systems, meaning those rooms can be set to be cooled or heated automatically when required.
Correctly optimised, VRF systems often have knock-on remunerative effects.
The Power of Precise Comfort
Guest experience is the lifeblood of the hospitality industry. In hotels, where HVAC use duration was among the highest of all building types2, VRF systems excel by providing unparalleled levels of energy-efficient individual comfort. Traditional centralised systems often leave guests battling too-hot or too-cold rooms, leading to dissatisfaction and potentially harmful reviews. With VRF, each guest enjoys precise control over their environment. This allows them to tailor the temperature to their liking, significantly enhancing their comfort and stay.
These benefits don’t stop at the guest room door. VRF optimisation improves common areas, ensuring lobbies, spas, restaurants, and conference spaces – to name a few – maintain a welcoming atmosphere year-round. This consistency is crucial in attracting and retaining guests, boosting occupancy rates and positively impacting the hotel’s bottom line.
A Case in Point
A client with a 45-room hotel had long grappled with an ageing HVAC system that led to exorbitant energy bills and unhappy guests due to uneven temperatures.
Our solution was to recommend a Toshiba VRF system upgrade (outdoor3 and indoor4) that delivered tailored temperature control for each room and shared space, automatically adjusting to ensure optimal comfort.
The outcome was a remarkable 20% saving in energy costs* compared to the previous system. The improved guest experience also sparked more positive reviews and boosted the hotel’s reputation and visibility online, leading to increased bookings.
Significantly, that 20% reduction in costs compounds over the system’s lifespan, eventually paying for itself.
The Green Factor & Accelerated ROI
While energy savings and guest satisfaction are potent drivers of VRF adoption, the environmental implications cannot be ignored. The ongoing transition toward lower Global Warming Potential (GWP) refrigerants further amplifies VRF’s sustainability credentials. By replacing older, high-GWP refrigerants with cutting-edge alternatives, VRF systems minimise their contribution to climate change, helping hotels align with rising consumer – and developing regulatory – expectations for environmentally responsible practices.
VRF systems also offer significant capability for fast ROI. The higher potential for simpler installation, reduced demolition, moderated structural needs, and lower electrical draw can significantly offset initial expenses. Continuous energy savings from the outset will further accelerate ROI, freeing up funds for immediate use elsewhere – including further decarbonisation initiatives.
The true ROI picture for VRF is even brighter when considering available incentives. Nearly £5 billion in government funding5 is allocated to help businesses decarbonise, meaning rebates or grants6 for energy-efficient HVAC upgrades can significantly offset upfront costs. By leveraging these incentives, hotel owners accelerate the return period and realise even greater cost savings over the system’s lifespan.
Invest in a Future that Pays
The true ROI of VRF systems extends far beyond the initial purchase price. Hotel decision-makers must adopt a lifecycle cost perspective to grasp its potential fully. By factoring in the substantial operational savings, the positive impact on guest experience, the contribution to environmental goals, and the possibility for accelerated ROI through incentives, VRF emerges as a sound investment that pays dividends for years to come.
Learn more about Toshiba VRF systems at www.toshiba-aircon.co.uk/products
*Based on customer feedback.