The Greenest Hotel in North America

The Planet Traveller Hostel, brainchild of renewable energy advocate and cleantech entrepreneur Tom Rand, is scheduled for a July 2010 launch in Toronto, Canada.  Rand has partnered with Anthony Aarts, a local real estate developer. The project is being marketed as the “Greenest Hotel in North America”, due mostly to its geothermal system.  This innovative boutique hotel will feature 24 rooms and a structure that highlights its power production, rather than hiding it. It will have several energy saving elements, such as solar & solar thermal power, smart thermostats and geothermal.  The builders have made all of these elements accessible and visible to guests, in an effort to highlight the unique aspects of this new venue.

“Geothermal is the workhorse of the building”, says Rand. Without geothermal, the rest of the efficiency features of the hotel would reduce energy usage by 25-30% versus a standard hotel.  With the geothermal system in place, reduction in energy use and carbon emissions will be at least 75%, likely more. Energy usage is a huge concern in Toronto, especially in the sometimes frigid winters.

The project had several unique challenges, including where to put the geothermal piping, getting regulatory approval, and insurance. When they were initially planning the project, the challenge was where they could install the pipes. Planet Traveller is located in a densely populated area in urban Toronto and there was no extra land included in its footprint. The solution was to ask the City of Toronto government for permission to bury the piping under the back alley laneway, which is public-owned land. “Getting the city to agree was one of the biggest hurdles,” said Tom Rand, one of the project partners.  “Funding the project during the biggest financial crisis in decades was also challenging.”

Another big challenge for the project was insurance. Finding an insurer who understood Geothermal enough to realize that there was no increased liability or risk from the pipes versus standard heating systems so that they would not have to pay a large penalty took some due diligence.

Rand & Aarts expect their achievement to inspire others,  showing what is possible and proving that the “green” elements are actually profitable, rather than an extra expense.  “We will be cash-flow positive on day one” says Rand, adding that the only extra construction cost is the ground loop (piping), which will have an expected payback of 3-6 years, depending on energy prices, and be a profit generator afterward.

The process was a learning experience for both partners. As Aarts dealt with the details of planning & construction, Rand used his profile as an entrepreneur, author and public speaker to talk about the project and its advantages. “Everything we need has been invented,  it just has to be deployed,” says Rand.  A constant advocate of renewable energy,  especially geothermal and enhanced geothermal, Rand hopes that examples like Planet Traveller will push others to do the same; “people need to look and leap at the same time.”

Asked about his aspirations for the project, Rand simply stated “Happy customers and to have other building owners follow our lead.”  Aarts is focused on the operations and eventual expansion of the project.  Once completed, Anthony will be the person responsible for operating the hotel and hopes to grow it in to a chain of similar venues.  Rand also believes in the potential for more Planet Travellers, exclaiming “The sky’s the limit!” Thanks to Tom & Anthony, urban density and pavement are no longer limits.

This was The Greenest Hotel in North America, an entry in our Renewable Energy Campaign from June 8, 2010. It was filed under Geothermal

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