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Royal Hospitality Services, Inc. Boston Green Tourism September 16 th , 2010. Overview. What do we do? Why do we do it? Comparison: Hotel On-Premise Laundry or Royal Where are the cost-savings? How do these savings impact the environment?. History. In operation since 1926
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Royal Hospitality Services, Inc. Boston Green Tourism September 16th, 2010
Overview • What do we do? • Why do we do it? • Comparison: Hotel On-Premise Laundry or Royal • Where are the cost-savings? • How do these savings impact the environment?
History • In operation since 1926 • Royal Institutional created in 1990 through merger – focus on Healthcare market. • Royal Hospitality created in 2005 after sale of healthcare to focus on Hotels. • Starwood is first to outsource laundry for all regional hotels after 2 year due diligence
What do we do? • Linen & Terry for both Rooms and F&B • Daily Pick-up with 24 Hour Turnaround • From Somerville – Service all of New England
Royal Truck Royal Truck Internal Transfer Carts Automatic Transfer Customer Carts Internal Transfer Carts
2005 2006 2007 2008 2009 2010 est.
Outsourcing Laundry: Need for Viable Option • Proliferation of Outsourcing of non-core functions • Need to maximize revenue-generating space • Emphasis on cost-containment • Utility volatility post-Katrina • Rising Labor/Benefit costs
What’s to love about Laundry? • Challenges: • Staffing • Machinery breakdowns • Inconsistent quality and shading • Peaks and valleys (feast or famine) • Fire concerns and safety risks • Summary: Expensive and Aggravating
Example: Utility Consumption at a 400 Room Hotel • 75% Occupancy • 12lbs/Occupied Room • 1,314,000 lbs Annually • 3.5 Gallons of Water per lb of Laundry • 4.6 Million Gallons of Water! • $0.03 per pound of Laundry for Water/Sewer • $0.08 per pound of laundry for gas/electric
Different Machinery at Hotels • Age and Efficiency of your Machinery • Whether Hotel operates an ironer • How full Machinery is Loaded • Cost anywhere from $0.08-$0.11 per pound for gas/electric
Royal: Advanced Machinery = Green Benefits • Continuous Batch Washers (CBW) -- guarantees chemistry, temperature and water levels • 18 Min Wash Cycle • Installation of $1.4 Million Water Reuse system March 2009: • 70% Less Water • 1 Gallon > .3 gallons of water per lb. • Recycled water holds temperature, uses less gas • Wash Water remains chemically “charged”, less detergent needed
Royal Machinery cont’d • Prior to washer>dryer transfer excess water “squeezed” out of Laundry under 400 lb press • Reduces amount of dryer time – 20-25 minute cycle • Linen: Not fully dried prior to ironing • Terry: Fully dried (but not over-dried!)
Environmental Benefits • 39 Hotels Serviced in Boston/Cambridge • Over 38 Million lbs processed annually • We estimate .3 gallons of water used per lb • Hotel Machinery uses 2-3.5 gallons of water • Conservative Savings: 2 Gallons per/lb • 76,000,000 Gallons Annually Savings: • $2.28 Million in Water and Sewer • $1.9 Million in Gas and Electric
Thank YouBoston Green Tourism!!! Questions? David Noble dnoble@royalhsi.com 617.629.4103