ESG: The Key to Resilient Hospitality Businesses

globe on hand and esg icon

In today’s hospitality industry, embracing environmental, social, and governance (ESG) principles is crucial. HSP is committed to supporting hotel owners and operators in their journey towards sustainability and responsible business practices. This thought piece explores the evolving ESG landscape and outlines how our comprehensive range of services can empower businesses to succeed.

The Changing Financial Landscape

Lending practices in the UK have shifted, with banks considering non-compliance with government carbon emission targets by 2030 as a risk factor for debt finance in the hotel industry. At the recent Energy & Environment Alliance (EEA) Summit in the UK, it was revealed that 80% of lenders plan to withdraw funding over the next 3-5 years for hotels without robust ESG strategies in place. The remaining 20% will continue to lend but at higher rates.

Increasing regulation on ESG disclosures is also driving private equity investors in the UK, the EU, and the US to focus on ESG. Hotels are considered ‘stranded assets’ if when they come to market, they have poor or non-existent ESG strategies and procedures in place. Funds are now being set up to identify and acquire these ‘stranded’ or ‘dirty assets’ at a discount and finance their transformation so they can be sold on at a higher value as ‘clean assets’.

Taking proactive steps to mitigate ESG risks is essential as investors demand measurable and evidence-based reporting. At HSP, we provide expertise and guidance to help hotel owners and operators develop robust ESG strategies and align with financial requirements, ensuring they can secure funding and thrive in this changing landscape.

Addressing the ESG Gap

The current state of ESG reporting in the hospitality industry is often described as the “wild west” due to the lack of standardized frameworks. Organizations like the EEA and the SHA (Sustainable Hotel Alliance) are working to create standardized reporting frameworks and benchmark resources. Legislative initiatives, such as the Corporate Social Responsibility Directive (CSRD) in the EU, drive more rigorous reporting and disclosure requirements. At HSP, we navigate this landscape, help clients set targets, and ensure transparency and accountability.

Our Comprehensive ESG Services

HSP has a dedicated team of hotel sector ESG specialists covering strategy, technical services, operations, communications, stakeholder engagement, and governance. Our services include:

  • ESG audit to assess current profiles and identify improvement areas
  • Developing an ESG vision aligned with brand purpose
  • Setting responsible, ethical, and evidenced targets
  • Creating practical implementation plans
  • Supporting resource management, employee engagement, community impact, diversity and inclusion, sustainable procurement, and responsible operations
  • Providing expertise in governance, board advisory, policies, procedures, and programs
  • Assisting with ESG reporting, communications, and narrative development aligned with brand purpose


As the hospitality industry embraces ESG, HSP is here to support hotel owners and operators. Our comprehensive services in strategy, implementation, governance, and reporting empower businesses to thrive. Together, we can build a more sustainable and responsible hospitality sector where environmental stewardship, social impact, and good governance drive long-term success and enhance asset value.