The Ohana Waikiki Malia Hotel

In August 2005, the owners of The Ohana Waikiki Malia Hotel faced
serious challenges despite improving hotel occupancies throughout
Waikiki. Electricity rates and fuel costs were rising rapidly and the
hotel’s 25-year old mechanical systems were being stressed beyond
their capacities, increasing the potential of system failures. Seeking
viable solutions, the hotel enlisted the expertise of Hawaii-based Energy
Industries, LLC to help them.
Six months later, the hotel enjoyed new energy-efficient equipment -
HVAC central plant, variable primary chilled and condenser water pumping
systems, efficient domestic hot water system, booster pumping
system, sewage ejector pumping system, upgraded lighting for common
areas, and a new energy management control system - that had considerably
lowered monthly electric utility expenses. The hotel managers
also enjoyed the “peace of mind” that the risk of equipment failures had
been mitigated and that the new systems were equipped with redundant
safeguards.
The comprehensive energy-efficiency program improved operating
efficiencies at the hotel and reduced overall electricity consumption by
approximately 30%.
Perhaps the most remarkable part of the energy-efficiency project is
that the hotel’s capital improvement budget was left untouched, and the
$750,000 retrofit costs did not reduce the hotel’s operating cash flow
because they employed a customized energy equipment lease-purchase
program designed by Energy Industries.
This program provided the Ohana Waikiki Malia Hotel with significant
financial benefits beginning in the first year, including:
· $0 front-end payment on project.
· $12,000 of cash flow from energy savings.*
· $20,000 one-time cash incentive for energy-efficiency from local
utilities.
· $50,000 of energy cost-savings accrued during the construction
phase before lease payments commenced.
· $18,000 in savings of avoided repair and maintenance.
· Unspecified tax benefits.
In summary, in addition to the beneficial operational efficiencies gained
from the capital improvements, the hotel will have over $100,000 in
increased operating cash flow as a result of energy-efficiency savings
integrated with an Energy Industries custom lease-purchase program.

* Each month, $1,000 of free cash flow is generated from $10,000 saving in utility bill netted
against $9,000 lease payments for an equipment lease. Figures are rounded.

The Ohana Waikiki Malia Hotel
Facility Description:
The Ohana Waikiki Malia Hotel is a 327-room hotel originally built in 1979, sited at the corner of Kuhio Avenue and Lewers Street in Waikiki. The property is presently owned by Lucky Hotels U.S.A. Co., Ltd. and is managed by Outrigger Hotels & Resorts under it “OhanaHotels” brand.

The property had been running original building equipment – HVAC, water heater, pumps, and
motors – that had over the years been rebuilt and patched, making them operate very inefficiently. In addition, ongoing repair and maintenance was costly because of the age of the equipment.

Based on an energy feasibility study of the facility the following Energy Conservation Measures (ECMs) were specified and implemented byEnergy Industries:

● Overhaul of the mechanical plant
· Replaced three chillers with two water-cooled screw chillers.
· Installed four new cross-connected chilled and condenser water pumps.
● Replacement of the water heater system
· Replaced single electric element water heater with two high efficiencyRaypac natural gas heaters.
● Replacement of sewage ejector pumps and controls.
● Replacement of constant volume booster pumping system with a duplex variable volume pumping system.
● Installation of variable frequency drives on the chilled and condenser water pumps and NEMA premium efficient motors.
● Lighting upgrade.
●Installation of a LONWorks Circon DDC energy management control system


Energy Industries recently exhibited at the West Coast Energy Management Congress. For more information, visit www.aeecenter.org/shows