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  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

Weighed in, tagged and sorted Washed in CBW and Conventional Machinery Dried by Item and Moisture Content Ironed and / or Folded Weighed out, staged for delivery Hotel Pick up and Drop Off Royal Truck Internal Transfer Carts Automatic Transfer Internal Transfer Carts Royal Truck Customer Carts

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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 – 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 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

Not Perfect…

Thank You Boston Green Tourism!!! Questions? David Noble