Hotels are among the highest energy users in the commercial hospitality sector due to 24-hour operations, guest heating and cooling demands, continuous hot water supply, laundry requirements, lighting, catering, and recreational facilities. Energy costs depend heavily on hotel size, star rating, occupancy, amenities, and whether the hotel has a restaurant, spa, gym, or swimming pool. This guide explores typical monthly spending, real-world usage patterns, and cost drivers for hotels in the UK in 2026.
Typical monthly energy costs for hotels
Most hotels spend between £1,700 and £45,000+ per month on combined gas and electricity. The range depends on the number of rooms, occupancy levels, available facilities, heating systems, and overall energy efficiency.
Typical monthly energy spend by hotel size and facilities
| Hotel type | Rooms | Electricity (kWh/month) | Gas (kWh/month) | Monthly electricity cost | Monthly gas cost | Estimated monthly total |
|---|---|---|---|---|---|---|
| Small B&B or guesthouse | 5–15 | 2,500–6,000 | 3,000–8,000 | £525–£1,260 | £210–£650 | £750–£1,800 |
| Small hotel | 15–30 | 6,000–12,000 | 8,000–15,000 | £1,260–£2,520 | £560–£1,200 | £1,800–£3,700 |
| Mid-size hotel without restaurant | 30–70 | 12,000–28,000 | 15,000–30,000 | £2,520–£5,880 | £1,050–£2,400 | £3,800–£8,000 |
| Mid-size hotel with restaurant | 30–70 | 20,000–40,000 | 25,000–45,000 | £4,200–£8,400 | £1,750–£3,750 | £6,000–£12,000 |
| Large hotel with restaurant and spa | 70–150 | 40,000–90,000 | 60,000–130,000 | £8,400–£18,900 | £4,200–£9,800 | £12,000–£28,000 |
| Luxury hotel with spa, pool, restaurant | 150–300 | 80,000–170,000 | 100,000–220,000 | £16,800–£35,700 | £7,200–£16,800 | £24,000–£52,500 |
| Resort or large multi-site hotel | 300+ | 200,000–400,000+ | 250,000–500,000+ | £42,000–£84,000 | £18,000–£41,000 | £60,000–£125,000+ |
Rate assumptions (2026 averages):
- Electricity: 21–23p/kWh
- Gas: 6.8–8.2p/kWh
- Electricity standing charge: £1.00–£4.00 per day (higher for commercial sites)
- Gas standing charge: 70p–£2.50 per day
Typical unit rates and standing charges used in our hotel cost examples
The monthly cost ranges for hotels are calculated by applying typical 2026 business tariff assumptions (unit rates and standing charges) to the estimated kWh usage ranges. This is important because the same hotel can end up with very different monthly costs depending on tariff structure, meter size, and procurement method, even when kWh consumption is similar.
Hotel energy costs are shaped by more than room count. Occupancy levels, laundry intensity, hot water demand, and facilities such as restaurants, gyms, spas, pools and conference areas can materially increase consumption and change the split between electricity and gas. Hotels with pools, spas, or large laundry operations can spend around 40% to 80% more on energy than guest-only hotels.
Electricity pricing assumptions (hotels)
Electricity use in hotels is typically driven by lighting, ventilation and extraction, air conditioning, lift operation, kitchen equipment (where applicable), laundry equipment, and a meaningful always-on baseload (reception systems, IT, security, fridges/freezers and plant controls).
The cost examples use the following electricity pricing assumptions (2026 averages):
- Electricity unit rate: 21–23p per kWh
- Electricity standing charge: £1.00–£4.00 per day (often higher than small retail/office supplies because hotel sites can have larger or more complex commercial metering arrangements)
Why electricity costs can rise sharply in larger or higher-end hotels: Hotels with extensive air conditioning, high lighting loads, conference/event spaces, gyms, or electrically intensive laundry operations tend to see electricity dominate a larger share of the total bill (particularly in summer, or where cooling is used year-round).
Gas pricing assumptions (hotels)
Gas is typically the dominant fuel in heat-led hotels because it supports space heating and hot water (showers, bathrooms, kitchens and laundry), and it becomes a major cost driver where there are heat-intensive facilities such as pools and spas.
The cost examples use the following gas pricing assumptions (2026 averages):
- Gas unit rate: 6.8–8.2p per kWh
- Gas standing charge: 70p–£2.50 per day
Why gas costs vary so widely between hotel types: A basic B&B can be relatively balanced between electricity and gas, while spa/health-club hotels and properties with pools typically see gas take a larger share due to continuous hot water and heating requirements.
Standing charges and multi-meter setups
Standing charges are daily fixed fees applied to your supply regardless of usage. Hotels can face higher standing charges than many SMEs because commercial sites may have larger meters, multiple supplies (for example, separate metering for kitchens, laundry blocks, spas or annexes), and more complex site configurations. In multi-meter properties, total standing charges can add up quickly, so they are included within the pricing assumptions rather than focusing only on per-kWh rates.
Important note on real-world variation
Actual hotel quotes and monthly costs can move materially depending on:
- Occupancy and seasonal demand (higher hot water and laundry loads at peak occupancy)
- Facilities provided (restaurant kitchens, spas/treatment rooms, pools/jacuzzis, gyms, event spaces)
- Laundry strategy (in-house vs outsourced, and how frequently linen is turned)
- Heating and hot water system type (controls, plant efficiency, distribution losses, insulation)
- Cooling and ventilation intensity (air-conditioned hotels typically have higher electricity shares)
- Meter type, site complexity, region, contract length, and renewal timing (all of which affect the unit-rate/standing-charge balance)
The figures above are included to show the pricing assumptions behind the cost ranges, rather than represent a guaranteed market rate for every hotel.
Typical energy usage breakdown in hotels
| Energy-consuming activity | Typical share of total energy usage | Notes |
|---|---|---|
| Heating and hot water (space and showers) | 35–55% | Largest workload, especially in winter and for high-occupancy sites. |
| Laundry operations | 10–20% | High usage from washers, dryers, irons, and steam equipment. |
| Catering and kitchen operations | 8–18% | Restaurants, bars, commercial kitchens, breakfast service. |
| Lighting | 8–15% | Guest rooms, corridors, reception, function rooms, exteriors. |
| HVAC and air-conditioning | 10–25% | Higher for luxury hotels, spas, and business conference hotels. |
| Swimming pools, spa, steam rooms | 5–20% | Large energy demand from water heating and ventilation. |
| Office, IT, security, lifts | 3–6% | Minor but constant load. |
Energy differences by hotel facility type
| Facility feature | Additional monthly energy cost (typical) |
|---|---|
| Full service restaurant | +£800–£3,000 |
| Laundry in-house (vs outsourced) | +£1,000–£5,000 |
| Spa and treatment areas | +£1,200–£4,500 |
| Swimming pool and jacuzzi | +£1,500–£6,000 |
| Conference/event rooms | +£600–£2,500 |
| Gym and changing facilities | +£450–£1,800 |
Hotels with pools, spas, or larger laundry operations can spend 40–80% more on energy than standard guest-only hotels.
Electricity-heavy vs gas-heavy hotels
| Hotel type | Electricity share of total bill | Gas share of total bill | Notes |
|---|---|---|---|
| Basic B&B | 45–55% | 45–55% | Balanced use for heating and lighting. |
| Hairdryer/light-heavy hotel (no spa) | 60–70% | 30–40% | Electricity-dominant due to in-room appliances. |
| Spa/health club hotel | 40–55% | 45–60% | Gas dominates due to pool and hot water. |
| Luxury air-conditioned hotel | 65–75% | 25–35% | AC and lighting driving electricity usage. |
Energy usage per occupied room (PRU)
| Hotel type | kWh per room per night | Typical total monthly cost per occupied room |
|---|---|---|
| Economy hotel | 8–12 kWh | £22–£35 |
| Standard 3-star | 14–22 kWh | £32–£60 |
| Luxury / spa hotel | 30–45 kWh | £65–£110 |
How to calculate your hotel’s monthly energy bill
- Find total monthly electricity and gas usage (from meter readings).
- Multiply usage by your unit tariffs:
e.g. 38,000 kWh × 22p = £8,360
e.g. 28,000 kWh × 7p = £1,960 - Add standing charges: typically £50–£130 per month for commercial meters
- Apply VAT and Climate Change Levy (CCL) where applicable
- For multi-meter hotels: repeat for each meter (restaurants, spas, laundry)
Ways hotels can reduce energy costs
- Switch to LED lighting across rooms and corridors (saves 30–50% on lighting costs).
- Install thermostatic controls and occupancy sensors in guest rooms (cuts 10–20% of heating waste).
- Upgrade heating to heat pumps or hybrid boilers (saves 15–30% on gas costs).
- Install solar PV for daytime electricity — typical hotels can offset 15–25% of electric use.
- Introduce scheduled laundry runs, and consider outsourcing where cheaper.
- Switch tariffs using comparison services like EnergyCosts.co.uk — potential savings of 10–22% for hotels on default or outdated contracts.
Summary
Hotel energy costs range from £1,700 per month for small guesthouses to more than £125,000 per month for large resorts, depending on size, amenities, occupancy, and heating and water demand. Guest comfort and round-the-clock operations mean high energy intensity, especially in hotels with spas, pools, catering, and conference facilities. Through tariff management, efficient heating, and equipment upgrades, hotels can significantly reduce costs without compromising standards.
FAQ
A small guesthouse or B&B with 5–15 rooms typically spends between £750 and £1,800 per month, depending on occupancy levels, hot water usage, onsite laundry, and heating efficiency.
Most hotels spend more on gas due to heating and hot water demands, especially in winter. However, hotels with strong air-conditioning use or high lighting loads can see 60–70% of their bill come from electricity.
A hotel with 30–70 rooms and a restaurant usually spends £6,000 to £12,000 per month on energy, reflecting heavy kitchen usage, lighting, hot water, and guest comfort controls.
Yes. A swimming pool, jacuzzi, or spa facility typically adds £1,500 to £6,000 per month, due to high hot water, ventilation, and humidity control requirements.
Energy use per occupied room usually ranges from 8–12 kWh per night in economy hotels, 14–22 kWh for standard hotels, and 30–45 kWh per night for luxury or spa hotels.
In-house laundry uses large volumes of hot water and dryer energy, often consuming 10–20% of total hotel energy, especially in larger hotels with daily towel and linen changes.
Yes. Many energy systems such as heating, lighting, and ventilation still run at near full capacity, meaning partly occupied hotels may still use 60–75% of peak demand energy.
Yes. Simple improvements such as LED lighting, smart thermostats, occupancy sensors, improved boiler controls, and scheduled laundry cycles can reduce usage by 10–25%.
Hotels moving from deemed or out-of-contract tariffs to negotiated or fixed commercial deals often save 10–22%, especially if using comparison platforms like EnergyCosts.co.uk.
Heating and hot water consume 35–55% of total energy. Other major contributors include laundry, catering, air conditioning, lighting, and guest comfort facilities such as spas and pools.