Sustainability Certifications: An Imperative in the Hospitality Industry

With around 40% of global emissions and energy consumption, let's be realistic—the construction and real estate sectors face a tremendous challenge to achieve carbon neutrality by 2050. Currently, the energy certificate is mandatory in asset transactions, but it only evaluates their energy performance.

Sustainability certifications for buildings cover a broader set of criteria, including water management, materials, biodiversity, waste, as well as the comfort and purpose of the building, among others. In the hospitality industry, especially in Portugal, where tourism continues to grow and contribute significantly to the GDP, incorporating green engineering in the various phases of design, architecture, construction, and operation is crucial.

In Portugal, we typically talk about three certifications: LEED, which is an American system; BREEAM, born in the UK and being the first in terms of sustainability; and WELL, more focused on health and well-being in office buildings. These certifications cover several categories, each with dozens of sustainability requirements, resulting in a specific rating for the building.

In MERCAN's portfolio, we made our debut in the best possible way by obtaining LEED Platinum certification at the Renaissance Porto Lapa hotel, standing out as the first hotel in Portugal and the eighth in the world to achieve this level of recognition. Notable features include the use of rainwater, which ensures more than 50% of sanitary discharges, a photovoltaic plant that covers about 12% of electricity consumption, and a facade with a metal shading structure and natural wood, providing better control of interior temperature. Additionally, the hotel was designed to maximize the enjoyment of outdoor space by guests and other users of the building. In line with this strategy, we are already investing in the implementation of these certifications in other projects, such as Holiday Inn Express Porto, Lapa II, Lisboa Park, Ocean View Hotel St. André, The Riverside Hotel Faro, Lagos Marina Hotels, among others that will certainly come.

The benefits are not just environmental. A hotel developed with a future vision has a higher perceived value, bringing clear advantages in interaction with stakeholders and corporate image. Let's see:

• Better Financing: Hotels certified with LEED Platinum/Gold or BREEAM Excellent/Very Good have easier access to financing, with bonuses and interest rate reductions;

• Procurement Policies: With more businesses aligning with ESG, many companies already restrict employee stays and corporate events to hotels with these certifications;

• Guest Preferences: Certification is a differentiator for hotels that want to attract customers with increasing environmental and social awareness;

• Rate Increases: Brands like Marriott have announced a 10% increase in rates for hotels with these sustainability certifications;

• Property Value: Certified buildings are increasingly valued by investors, as they bring long-term value and offer a higher return on investment;

• Regulatory Compliance: Certification helps hotels comply with increasingly stringent regulations, reducing the risk of penalties.

At MERCAN, we pride ourselves on being disruptive, and in our development strategy, we aim to lead the hotel sector in Portugal with the greenest portfolio. This commitment is not only a response to current ethical and regulatory demands but a proactive strategy that adds value to the hotel business, contributing to building a more resilient brand aligned with global concerns.