Ameresco Completes OUTRIGGER Kauai Beach Resort & Spa’s Energy Efficiency Renovation as Part of 15-yr EaaS Agreement

Rhea-AI Summary

Ameresco, Inc. completes a $15.5 million energy efficiency renovation at OUTRIGGER Kauai Beach Resort & Spa under a 15-year Energy as a Service agreement. The project includes upgrading guest room fan coil units, central chiller plant, hot water distribution, electrical transformers, and exterior lighting with energy-efficient solutions. Ameresco will maintain and operate the new equipment for the duration of the agreement, showcasing a commitment to environmental stewardship and sustainability.

Insights

Energy Sector Analyst

The completion of a $15.5 million energy efficiency renovation by Ameresco, Inc. at OUTRIGGER Kauai Beach Resort & Spa marks a significant investment in sustainable infrastructure within the hospitality industry. This move aligns with broader trends in the energy sector where companies are increasingly adopting Energy as a Service (EaaS) models. EaaS allows businesses to upgrade their energy systems without the need for upfront capital, instead paying for the energy services over time. For Ameresco, this project demonstrates their capability to deliver large-scale energy efficiency solutions, potentially leading to increased market confidence and future contracts.

From an investment perspective, Ameresco's successful completion of the project could signal to shareholders and potential investors their ability to manage complex installations and maintain long-term service agreements. This could have a positive impact on the company's stock, as investors often look favorably upon companies with a strong pipeline of recurring revenue. Furthermore, the emphasis on energy-efficient technologies such as smart thermostats and LED lighting is indicative of the company's commitment to innovation and sustainability, factors that are increasingly important to socially responsible investors.

Sustainability Expert

The OUTRIGGER Kauai Beach Resort & Spa's commitment to environmental stewardship through their partnership with Ameresco could serve as a case study for the hospitality industry's potential role in combating climate change. By implementing energy-efficient technologies and systems, the resort is likely to see a reduction in its carbon footprint. The use of smart thermostats, a new central chiller plant and LED lighting not only reduces energy consumption but also enhances the guest experience through improved comfort and reduced wait times for hot water.

While the environmental benefits are clear, the long-term cost savings from reduced energy consumption could also be substantial, potentially affecting the resort's profitability and competitive positioning. As the market increasingly values sustainability, the resort's modernization efforts may attract eco-conscious travelers, providing a marketing edge. The project's success could encourage other companies in the hospitality sector to pursue similar sustainability initiatives, contributing to industry-wide improvements in energy efficiency and carbon emissions reduction.

Financial Analyst

The financial structure of the EaaS agreement between Ameresco and OUTRIGGER Kauai Beach Resort & Spa is worth noting. By avoiding upfront costs, the resort can allocate capital to other areas of its business while still benefiting from modernized infrastructure. For Ameresco, the 15-year service agreement provides a stable, long-term revenue stream. This type of arrangement could become more common as businesses seek to mitigate financial risks associated with large capital expenditures.

The $15.5 million project cost and the multi-year commitment suggest confidence in the return on investment through energy savings and operational efficiencies. Investors should monitor the performance of such agreements as they can influence the company's cash flow and earnings stability. The ability to deliver and maintain energy efficiency projects over extended periods is crucial for Ameresco's reputation and can affect investor sentiment. The success of this project could lead to similar agreements with other resorts or businesses, potentially expanding Ameresco's market share and impacting its financial growth trajectory.

Cleantech company revolutionizes the energy infrastructure at the resort while enhancing the guest experience

FRAMINGHAM, Mass. & KAUAI, Hawaii--(BUSINESS WIRE)-- Ameresco, Inc., (NYSE: AMRC), a leading cleantech integrator specializing in energy efficiency and renewable energy, today announced the completion of the installation of new energy efficiency and maintenance advancements at OUTRIGGER Kauai Beach Resort & Spa as part of a 15-year Energy as a Service (EaaS) agreement. The partnership allowed the oceanfront resort to update and replace its energy-related equipment without up-front capital.

OUTRIGGER Kauai Beach Resort & Spa (Photo: Business Wire)

The $15.5 million energy efficiency renovation was designed and constructed by Ameresco in several phases over the last two years. Key upgrades included replacing 350 guest room fan coil units with new smart thermostats, a new central chiller plant with added redundancy for air conditioning, new hot water return distribution for reduced hot water wait times, and new electrical transformers. It also included adding a new building automation system to monitor and control temperatures in guest rooms, kitchens and ballrooms complete with variable speed capabilities for utility savings during periods of partial occupancy. Additionally, the exterior lighting throughout the resort has been comprehensively modernized with energy-efficient LEDs. Continuous monitoring provides up-to-date information of the condition of all building components, for comprehensive asset management software. The new equipment will continue to be maintained and operated by Ameresco for the life of the EaaS agreement.

“By integrating cutting-edge technology at OUTRIGGER Kauai Beach Resort & Spa, this partnership exemplifies our dedication to staying at the forefront of the industry while also revitalizing our resort’s pledge to environmental stewardship,” said Mike Shaff, Senior Vice President Operations - Americas for OUTRIGGER Hospitality Group. “Over the past three years, the property’s commitment to 'Caring for our Place' has manifested in substantial reductions in electricity, propane, and water consumption. This partnership has evolved into a dynamic collaboration, and we look forward to the forthcoming 15 years with enthusiasm and optimism."

“The Energy as a Service agreement with OUTRIGGER Kauai Beach Resort & Spa exemplifies our dedication to finding individualized, cost-effective solutions for our partners to achieve their sustainability goals that will bring them long-term benefits,” said Nicole Bulgarino, Executive Vice President, Ameresco. “We are proud to have played a pivotal role in enhancing the energy efficiency of this remarkable oceanfront resort."

Construction and the installation of new efficiency upgrades at OUTRIGGER Kauai Beach Resort & Spa began in October 2021 and reached full completion in December 2023.

To learn more about the energy efficiency solutions offered by Ameresco, visit www.ameresco.com/energy-efficiency/.

About Ameresco, Inc.

Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading cleantech integrator and renewable energy asset developer, owner and operator. Our comprehensive portfolio includes solutions that help customers decarbonize to net zero and build energy resiliency while leveraging smart, connected technologies. From implementing energy efficiency and infrastructure upgrades to developing, constructing, and operating distributed energy resources – we are a trusted sustainability partner. Ameresco has successfully completed energy saving, environmentally responsible projects with Federal, state and local governments, healthcare and educational institutions, housing authorities, and commercial and industrial customers. With its corporate headquarters in Framingham, MA, Ameresco has more than 1,300 employees providing local expertise in North America and Europe. For more information, visit www.ameresco.com.

About OUTRIGGER Kauai Beach Resort & Spa

Nestled on the enchanting 'Garden Island' of Kauai, the plantation-style OUTRIGGER Kauai Beach Resort & Spa spans an expansive 25 acres of beachfront paradise just minutes from Lihue Airport. The property boasts 350 guestrooms, all with extraordinary ocean views for a relaxing seaside escape. The lush resort boasts four alluring pools, including a whimsical waterslide. Guests can enjoy three distinctive dining options, alongside nightly live music and a rich tapestry of complimentary cultural offerings. A versatile canvas for business meetings, weddings and other celebrations – the property has more than 13,000 sq. feet of outdoor event space and 11,500 sq. feet of indoor venues. For more information, visit www.OUTRIGGER.com or @KauaiBeachResort.

The announcement of Ameresco’s completion of an energy asset project is not necessarily indicative of the timing or amount of revenue from such arrangement, of the company’s overall revenue for any particular period or of trends in the company’s overall total assets in development. This project was included in our previously reported assets in development as of September 30, 2023.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240214519642/en/

Media:

Ameresco: Leila Dillon, 508-661-2264, news@ameresco.com

Source: Ameresco, Inc.

FAQ

What company completed the $15.5 million energy efficiency renovation at OUTRIGGER Kauai Beach Resort & Spa?

Ameresco, Inc. completed the renovation.

What type of agreement was in place for the energy efficiency project at OUTRIGGER Kauai Beach Resort & Spa?

It was a 15-year Energy as a Service (EaaS) agreement.

What were some key upgrades included in the renovation project at OUTRIGGER Kauai Beach Resort & Spa?

Key upgrades included replacing guest room fan coil units, central chiller plant, hot water distribution, electrical transformers, and exterior lighting.

Who will maintain and operate the new equipment at OUTRIGGER Kauai Beach Resort & Spa?

Ameresco will maintain and operate the new equipment for the duration of the agreement.

When did the construction and installation of new efficiency upgrades at OUTRIGGER Kauai Beach Resort & Spa begin?

Construction began in October 2021 and reached full completion in December 2023.