Technology 10 Oct 2024

Standard Bank empowers Protea Hotel Stellenbosch with sustainable energy solutions

Protea Hotel Stellenbosch pioneers sustainability with solar energy solutions supported by Standard Bank

The context

In 2023, South Africa saw some of the worst loadshedding since the introduction of the practice in 2007, with outages being in effect for 79% of the year. Protea Hotel Stellenbosch is a prominent hotel and conference centre along the Stellenbosch wine route. Like so many other businesses in the country, the hotel faced significant operational disruptions due to loadshedding. Comprising 92 sectional title units and 180 rooms, individually owned by 92 owners under the Body Corporate Protea Hotel, the hotel needed to find a robust and reliable power solution.

The hotel, with a 21-year banking relationship, turned to us for support. The Protea Hotel Stellenbosch is known for idyllic conditions for both business and leisure, sporting amazing views of the mountains, rich heritage, local vineyards and deluxe accommodations for domestic and international guests alike. Ensuring uninterrupted power to maintain their exacting standards of service and guest satisfaction was critical.

The problem

Frequent and often lengthy power outages threatened the hotel’s ability to provide a consistent experience for its guests, many of whom are repeat visitors. Reliance on diesel generators was not only costly, but it was also unsustainable and damaging to the environment. The need for a shift towards reliable and eco-friendly power sources heightened as disruptions affected everything from lighting and air conditioning to kitchen equipment and conference facilities.

The cost of diesel was escalating, and the impact of running generators was becoming increasingly concerning for the hotel. Two key factors, namely the reduction in operational costs and the alignment with its commitment to environmental stewardship, motivated the hotel in its search for support.

The solution

We provided a bespoke 10-year funding facility that focused on renewable energy projects. This funding enabled the installation of a solar and battery system at the hotel. The project broke ground in May 2023 and came online in the last quarter of the year. This new system has successfully reduced the hotel’s dependence on traditional power sources, and it has eliminated the need for generators during loadshedding. This is a significant and rewarding saving towards operational costs.

The solar panels installed on the extended roof and carports generate 322 kW of energy, which represents a savings of 341 metric tons of CO2 annually. We witnessed exemplary conduct of their long-standing relationship with us, excellent support of the natural resources team, open and frequent communication, quick and committed action, as well as a joint effort from both the client and us to make this installation a success. The project has delivered over and above to ensure both the consistent and reliable power supply that the hotel required but also strengthened its position as a leader in sustainability within the hospitality industry.

The outcome

Since implementation in late 2023, the system has generated power equivalent to avoiding 1 836 tons of CO2 emissions. The system generated over 47 000kWh in March 2024 alone, resulting in a substantial saving of R 73 000 on the utility bill. In less than a single year, the renewable energy collaboration with us has secured premium service delivery and sustained guest experience that matches the Protea Hotel’s high standard, and it has also upheld the commitment to sustainability which defines the hotel.

The project has been an immense success, setting a benchmark for renewable energy adoption in the industry, and it has set a precedent for others to follow. Guest satisfaction, endorsement for sustainability practices, lower operational costs and value-driven follow-through on commitments have made an immensely powerful and positive impact. As the initiative continues to grow, it continues to demonstrate the real-world value and overall significance of renewable energy solutions for businesses in South Africa and the world.

The efforts made towards the client experience also paid off in other ways. In September 2023, the hotel was awarded the prestigious title of ‘Coolest Hotel Brand’ in South Africa at the esteemed Sunday Times Next Gen Awards.

“Protea Hotels by Marriott prides itself on providing authentic South African experiences, and this award affirms that our efforts have resonated with young travellers who seek authenticity, comfort and quality,” said Market Vice President: South Africa, Marriott International Sean Maher.