03 - Cranberry Twp, PA
Hampton Inn & Suites
One of our first clients, Hawkeye Hotels, have continued their expansion plan near Pittsburgh, PA with a Hampton Inn & Suites located in Cranberry Township, PA. With this market being relatively new, we wanted to study the default utility rates in Penn Power. After analyzing 8 invoices, we realized that that Penn Power was charging a variable rate every single month. In some months, half the billing period was charged one rate, when the other half was charged a separate rate. Ultimately, once analyzed, we calculated that their weighted-average rate (rate-to-compare) was $0.06979/kWh. When shopping around apples-to-apples, we learned that we were able to reduce their energy supply rate by 38%. Hence, this 110 room hotel is anticipated to save $13K annually over the next 3 years, or so. What could your hotel do with an extra $13K in working capital?