Ozone Laundry – 95 Room Hotel Payback Study

Ozone laundry systems are a well-known option for hotel operators seeking to reduce costs and/or implement a stronger environmental program.  Ozone laundry is a key component of both efforts.  An additional attraction of these cost saving programs is that ozone laundry can be installed in an on premise laundry with no disruption to either the operation’s outputs or its workers.

However, the details of these ozone laundry systems are often missing from the marketing materials, leaving managers to make risky and unguided decisions about the investment.  This report summarizes the analysis of an on premise ozone laundry installed in an upscale 95-room chain hotel in a resort location. The investment and operational costs, as well as the energy savings, are based on the historical data of this operation to give reliable estimates of actual costs. 

Background Research and Analysis

The supplier of this system, DEL Ozone, evaluated the hotel laundry operation to show managers the cost and energy savings they could expect with the DEL ozone laundry system.  The results of this analysis are summarized below.  You can see the full evaluation report by filling out the brief form here and we will provide you a copy.

The crucial outcome variable in this research, hot water consumption, is measured using meter readings that are verified by hotel employees, third party engineers, or local utility company employees.  In this hotel, the laundry operation used two 6 horsepower Unimac washers with 60-pound capacity, each running 9 to 10 loads per day. The input unit cost data included water and sewer, fuel, linen replacement, electricity, and fabric softener costs (ozone eliminates the need for fabric softener).  These unit costs were analyzed for total cost breakdowns using historical data for occupancy, average laundry per room, water purchased, boiler operation, electricity usage, and direct costs for fabric softener and linens.

Then, each portion of the analysis was re-run based on the changed cost and energy requirements of the ozone laundry system.  The before and after projections are summarized below.

Ozone Laundry Advantages

The most important operational outcome discovered in this analysis is that the ozone laundry system saved over 47% of fuel costs for boiler and dryer operation, with a 74% savings for the boilers (hot water) alone.  In addition, the system eliminated softener costs, reduced electrical costs for the washers and dryers by about 13%, and reduced linen replacement costs by 10%.  In total, the system saved almost $780 per month for this hotel.

The primary source of savings is fuel costs for the washers and dryers.  The main reason is that ozone works even more effectively than chlorine bleach, but in cold water.  The conservation of energy in this equation also prevents the emission of a significant amount of carbon dioxide.  A complete summary of the system operation on an annual basis includes: 

Hotel:                                                              95 rooms

Annual linen processed:                      348,075 pounds

Annual savings:                                   $9,331

1^st year return on investment:             79%

Investment recapture period:              15.2 months

Utility cash incentive:*^*                     $4,717

Carbon footprint reduction:                35 tons 

The Savings Fund the Investment

The cumulative projected savings for this ozone laundry system are significant:

            1^st Year            2^nd Year           3^rd Year           4^th Year            5^th Year

            $9,331             $18,661           $27,992           $37,322           $46,653

Reduced cost of this magnitude means that the capital investment is recaptured very quickly. In this case study, investment recapture was estimated at 15.2 months, meaning that the laundry operation would be sending added cash to the bottom line in less than 1 and ½ years. 

Detailed Analysis Verifies Ozone Laundry Savings

Operators of hotel on premise laundries do not have to evaluate the ozone laundry system investment based only on assumptions and generalities.  Each laundry operation generates a track record of the relevant cost sources and consumption rates that can be used in a laundry-specific analysis to project actual cost savings very accurately.

A credible ozone company will always provide a predictive analysis. Based on this research, operators can confidently project costs and arrange financing on the most favorable terms.  Further, in those locations where utility energy incentives are available, project costs can be reduced with substantial cash payments.  Ozone provides should provide technical assistance to acquire utility cash incentives on behalf of its clients.

Ozone laundry linen quality and cost savings are easily available for almost every hotel operator. EcoGreenHotel assists hotel operators identify the appropriate solutions and vendors to support hospitality sustainability. For questions, rebate support or additional detailed case studies contact info@ecogreenhotel.com.

 

About EcoGreenHotel

EcoGreenHotel LLC (Knoxville, TN) is a privately held company dedicated to helping lodging facilities addresses a broad spectrum of sustainability issues. EcoGreenHotel provides customized consulting services tailored to the needs of the hospitality industry in the areas of energy efficiency and certifications, including LEED, Green Seal and Energy Star, For further information, email info@EcoGreenHotel.com or call 888-229-0213.

 


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