Urban Five-Star Luxury Hotel
Challenging shared energy charges through an audit of historical bills
- A high-end hotel occupying twelve lower floors opened in 2013 within a landmark 52-story urban skyscraper constructed in 1973.
- The hotel owner was responsible for certain shared energy costs before, during, and after construction. Property management issued monthly billing statements detailing metered and unmetered electricity costs, and fixed and variable costs for natural gas, chilled water, and hot water.
- After the hotel had been receiving guests for more than a year, the hotel owner compared current costs to historic costs and questioned the legitimacy of various past charges.
- They conducted some preliminary analysis of several years of bills and discovered some obvious mathematical errors, but they required energy consulting expertise for a more thorough investigation of potential inaccuracies.
- We were engaged to conduct a comprehensive audit of bills dated 2011 through 2014 that the hotel received from property management for shared energy costs.
- Collecting additional information about physical changes to the hotel’s space before and during construction, we reconstructed the billing formulas and recalculated all line-item charges.
- Our systematic approach uncovered a wide variety of apparent issues and inconsistencies, which we explained with detailed documentation. Disputing several hundreds of thousands of dollars in historical energy costs attributed to the hotel owner, we produced a report challenging the previous billings and requesting additional information and clarification.
- Acting as an unbiased subject matter expert, we provided several rounds of factual analysis and additional narrative to support the hotel owner’s negotiation with property management.
Service AreaEnergy Management
Hotels and Hospitality