EV charging stations could be exactly what the UK hotel industry needs

Challenges facing UK hospitality

Despite a stronger than expected rebound in demand in 2022, and growth following the pandemic, considerable challenges remain for the UK hospitality industry. Rising operational costs, inflation, high interest rates and energy prices, together with labour shortages and supply chain disruption, all mean that the industry’s recovery is likely to slow down in 2023.

In this financial and economic context, now might be considered the wrong time to concentrate on capital expenditure projects that do not generate an awful lot of direct profit themselves. But consumer surveys continue to highlight pockets of positivity and certain groups of people can still afford luxuries. Given the pent-up demand following the Covid-19 lockdowns, if luxuries must be prioritised, travel and leisure are at the top of the pile. By doing so, businesses can help to ensure that they stand out in the marketplace. 

How EV chargers can make a hotel stand out

There has been a gradual increase in the number of electric charging points across the country, and more hotels are looking to install EV charging devices. But relatively few are making a big noise about the infrastructure they have or are looking to install. Whitbread - owner of the Premier Inn Hotels – and Holiday Inn appear to be front runners in an otherwise quiet playing field.

Additional marketing

There are now lots of different websites and smartphone apps that inform EV drivers of their closest charging stations, including those at hotels. Installing EV charging infrastructure allows hotels to reach a whole new market and provide a service that could help them to stand out from a crowded marketplace. Not only could installing EV charging points bring additional guests for hotels, but they could increase ancillary footfall for any food and beverage offerings.

Depending on the type of chargers that are installed, it can take anywhere between 30 minutes and four hours to fully charge an EV. Because of this, consumers are likely to take advantage of additional facilities while they wait. A hotel can install charging stations that drivers have to pay to use. In doing so, the hotel essentially sells its electricity, generating additional revenue which could, over time, actually pay for itself and create a profit.

Environmental benefits

In addition to the marketing, reputational and profit positives, there could also be wider benefits with regards to EV charging. Environmental and sustainability strategies remain a key priority for those in hotel and hospitality industry, with serious discussions taking place about what tangible steps the sector can take. Operating a hotel is a carbon intensive operation and will have a direct impact on global carbon emissions. Because of this, a number of large international hotel brands have made various carbon reduction strategy commitments.

Of course, EV charging is not the sole answer to the carbon challenges faced by hotels, and the supply of electricity would itself need to be considered and ‘offset’ in some way to ensure that it does not affect its own net zero claims. But installing EV charging infrastructure would appear to be a very tangible and positive step forward in overall environmental strategy, reducing the carbon consumption of consumers by offering them a real travel alternative and the necessary charging infrastructure to do so.

Potential risks and challenges

The limiting factor in deciding whether to roll out EV infrastructure is the investment required in instances where hotel owners need to factor in costly upgrades. Despite this, there is a real opportunity for ‘destination hotels’, such as country escapes and resort-style businesses, where slower charging or lower KW options would be suitable due to users staying for a length of time. Such units have lower set up costs than faster charging and higher KW options.

Meanwhile, those hotels located near to or on the strategic road network SRN would be more likely to attract passing trade, and would probably need to install higher KW chargers that are more costly and are likely to require grid upgrades. However, these costs are potentially outweighed by the way the market is moving and the need to keep pace.

In addition, there are several specialist charge point operators (CPOs) in the market now. An increasing number of landowners are entering into framework agreements with specialist CPOs across a portfolio of properties. The CPOs will deal with the planning, regulatory, construction and operational risks in return for a commercial return for the use of the charging points, clearly offering expertise for hotel owners to leverage off.