For a typical mid-to-large scale hotel, electricity accounts for approximately 60% to 70% of total utility costs. On average, hotels spend between $1.05 and $2.20 per square foot per year on electricity, though this varies significantly by climate and luxury level. For a standard 150-room hotel, this can translate to an annual electricity bill ranging from $150,000 to over $400,000. The primary "energy hogs" are the HVAC (Heating, Ventilation, and Air Conditioning) systems, which account for nearly 50% of the total usage, followed by lighting (20-25%) and water heating. In 2026, many hotels are investing heavily in "smart room" technology—such as occupancy sensors that automatically dim lights and adjust the thermostat when a guest leaves—to reduce these costs. Additionally, the shift toward LED lighting and high-efficiency laundry equipment has helped some properties reduce their electricity spend by up to 20%, though rising energy prices globally continue to make power management a top operational priority for hotel managers.