Mandarin Oriental Brings Sustainability into Hotel Investment Decisions

Mandarin Oriental unveiled MO.RE on 20 October, a platform intended to bring environmental and social considerations into the way it invests in, designs and operates hotels. The group is focusing on three areas: helping hotels and destinations prepare for a changing climate, strengthening connections with local nature and culture, and supporting the regeneration of communities and ecosystems. What matters to the industry is when those questions enter the process: before an investment is approved and throughout the life of the property.

The investment decision comes long before check-in

A hotel can change its amenities or reduce waste from a service. It is much harder to fix a building that needs too much cooling, relies on equipment that is difficult to maintain, or has little room to adapt when water becomes scarce. That is why the analysis belongs at the design stage. A climate-risk profile gives teams a basis for discussing local exposure and any work that might be needed before they sign off on a budget or a management agreement.

Purchasing changes too. To reduce impact across the supply chain, a hotel needs to know where its food, textiles and materials come from and what evidence suppliers can provide. Purchasing criteria have to be clear enough to put in a contract and practical enough to audit. Management needs to know who measures the outcome, what it costs to maintain and what it means for service.

Distinguishing results from ambitions

Mandarin Oriental reports a 33% reduction in Scope 1 and 2 emissions over the past fifteen years. These are, respectively, direct emissions from operations and emissions associated with purchased energy. Scope 3 covers other value-chain emissions, and one aim of the platform is to improve visibility of those emissions. The reduction already reported and the future aim are different kinds of information.

An existing hotel can test the approach when planning its next refurbishment: put the upfront cost, expected maintenance and operating risks on the same page. That makes it easier to see when an apparently cheaper investment could cost more over the life of the asset.

For owners and operators, a property review can start with three questions: which risk could cost the building most, which measure tracks it, and what investment decision would change if that measure moved? The programme will be useful to the industry if those answers can be compared over time. A luxury experience also depends on what a hotel can sustain as the destination around it changes.

Sources: Mandarin Oriental’s MO.RE announcement. Illustrative photograph: Pexels.