For one of the UK’s largest multi-site hospitality estates, the challenge was not simply finding ways to save energy. With more than 1,400 locations of different sizes, formats and operating patterns, the organisation first needed to understand which sites were using the most energy, why their performance differed and where investment could deliver the greatest benefit.
Uniform approach not ideal
Large multi-site property portfolios naturally evolve over time. Buildings can vary considerably in age, size, operating hours, equipment and energy demand, so similar locations may perform very differently. Without a clear view of these differences, organisations can struggle to prioritise investment and may take the same approach across every site, regardless of its actual performance or potential for improvement.
That was the challenge facing this organisation when it commissioned Mitie to carry out an ESOS assessment across its UK operations. The initial objective was to meet its compliance obligations, but the scale and depth of the analysis created a wider opportunity. It provided the evidence needed to understand:
- Where energy was being consumed
- Which locations were underperforming
- Where targeted investment could deliver the greatest return
The organisation’s property portfolio comprised more than 1,400 locations across several operational formats. The analysis showed that energy consumption was not evenly distributed across the portfolio, with a small number of site types accounting for much of the overall demand. It also identified individual locations using significantly more energy than comparable sites, helping the organisation distinguish between expected variations and potential underperformance.
First understand where opportunities exist
As a result, rather than attempting to improve every location simultaneously, the organisation focussed on the sites with the greatest potential to reduce costs and improve performance. For estate leaders, this is an important lesson. The most effective energy strategies begin by understanding where the biggest opportunities exist, not by applying blanket improvement programmes across an entire estate.
Detailed site audits reinforced this point. While more than 100 individual energy-saving opportunities were identified, most of the potential benefit came from a relatively small number of repeatable interventions. Mostly this involved operational optimisation rather than major capital investment, including improvements to:
- Controls
- Monitoring
- Equipment performance
- Energy management practices
These measures offered attractive payback periods while reducing electricity demand, which was the estate’s largest operational energy cost.
The findings supported a simple but often overlooked investment sequence:
Optimise first. Retrofit second. Decarbonise third.
Too often, organisations look for a quick fix through new or innovative technologies, such as heat pumps, solar panels or smart building systems, without first addressing the root causes of unnecessary energy consumption. Improving the way existing assets are controlled, monitored and operated can deliver earlier savings while creating a stronger foundation for future investment in low-carbon technologies.
The project highlighted this particularly clearly when considering electrification. Technologies such as heat pumps will play an important role in decarbonising commercial estates. However, switching from fossil fuels isn’t as simple as replacing one heating system with another. Organisations first need to understand how their buildings perform, whether they have enough electrical capacity and how energy is used across the site. Electrification works best when it forms part of a wider estate strategy rather than a standalone technology programme.
Multi-million-pound saving potential
When the recommendations were modelled across the wider estate, the commercial opportunity became clear. The assessment identified the potential to reduce overall energy consumption by more than 20%, delivering multi-million-pound annual cost savings while providing a clear roadmap for future investment. More importantly, it gave decision-makers confidence that investment was being directed towards the areas where it would generate the greatest return.
Perhaps the most valuable outcome, however, was the shift in mindset. What began as a compliance exercise became the foundation for a long-term estate improvement strategy.
Portfolio insight is not a nice-to-have
For leaders responsible for multi-site portfolios, the challenge is usually deciding where to begin. A practical first step is to benchmark similar locations, identify sites using more energy than expected and investigate the operational reasons behind that difference. This allows investment to be focused on the locations and measures with the greatest potential to reduce costs and improve performance. Organisations face an environment of:
- Rising energy costs
- Increasing compliance requirements
- Growing pressure to decarbonise
These factors mean that understanding how different parts of a property portfolio perform is no longer a nice-to-have.
The hidden energy problem is the variation between apparently similar locations: inefficient sites can remain unnoticed when performance is viewed only at portfolio level. Benchmarking individual sites and identifying operational outliers gives organisations the evidence to target investment, improve resilience and build a credible roadmap towards net zero.
ENERGY & RESILIENCE HEALTH CHECK
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