Commercial Electricity for Hotels & Motels in Texas
What a Texas hotel pays for power - guest-room climate control around the clock, hot water for every shower, and common-area lighting - plus how to lower the bill.
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Texas is home to over 5,600 hotels and motels, and lodging is a 24/7 energy business: every guest room needs heating or cooling, hot water, and lighting, while lobbies, hallways, and amenities run continuously. Below is what hotels use and pay, and where the power goes. See related guides for gyms & fitness centers and restaurants, or browse all commercial electricity guides by business type.
Key Takeaways
- A mid-size Texas hotel uses about 50,000–90,000 kWh a month (roughly $4,150–$7,500 at ~8.3¢/kWh); small motels use far less.
- That works out to roughly 500–700 kWh per room per month - about $45–$60 of electricity per room.
- Hotels spend around $2,196 in energy per room per year (~6% of operating costs).
- Guest-room HVAC and water heating lead the electric bill.
- Guest-room energy controls, LED, and a fixed rate are the biggest levers.
Hotel Electricity, per Room and Overall
Figures are estimates that scale with room count and amenities. See methodology and sources below.
What a Hotel Pays to Power Every Room
Hotel electricity scales with room count and amenities. Each occupied room draws power for climate control, hot water, and lighting around the clock, and full-service properties add restaurants, banquet space, pools, and laundry. A useful rule of thumb is roughly 500–700 kWh per room per month.
Estimated usage & bill by property size
| Property size | Rooms | Monthly usage | Est. monthly bill* |
|---|---|---|---|
| Small motel | 20–40 rooms | 10,000–25,000 kWh | $850–$2,100 |
| Mid-size hotel | 80–120 rooms | 50,000–90,000 kWh | $4,150–$7,500 |
| Large / full-service | 200+ rooms | 150,000–300,000+ kWh | $12,000–$25,000+ |
*Electricity portion at Texas's ~8.3¢/kWh average commercial rate. Properties with restaurants, banquet space, and pools land at the high end; gas may cover part of heating and hot water.
How does the Texas commercial rate compare?
Texas businesses pay an average of about 8.3¢ per kWh - roughly 38% below the U.S. commercial average of ~13.5¢. Because Texas is deregulated, you can shop the supply portion of your bill across 30+ retail providers and lock in a fixed rate - compare current commercial electricity rates.
Guest-Room Climate Leads the Bill
Across dozens or hundreds of rooms, heating and cooling is by far the biggest electric load, with water heating and lighting next. Because rooms run 24/7, small per-room savings multiply quickly.
| System | Why it draws power | Approx. share of the electric bill |
|---|---|---|
| HVAC (guest rooms + common areas) | Round-the-clock heating and cooling | 40–50% |
| Water heating | Showers, laundry, and kitchens (where electric) | 15–20% |
| Lighting | Rooms, hallways, lobby, and exterior | 12–18% |
| Laundry | On-site washers and dryers | 5–10% |
| Kitchen, elevators, pool & other | Amenities and building systems | 8–12% |
Shares are illustrative; full-service hotels with restaurants and pools shift more toward kitchen and amenity loads.
How Peak Occupancy Sets Your Demand Charge
Most of your bill is energy — the total kilowatt-hours (kWh) you use over the month. But many commercial accounts also carry a demand charge, billed on your single highest peak of power draw, measured in kilowatts (kW), usually over a 15-minute interval. It doesn't matter only how much electricity you use, but how fast you use it at your busiest moment.
How to keep demand charges down
- Add occupancy-based guest-room controls so unsold or empty rooms aren't fully conditioned.
- Stage common-area HVAC and laundry so they don't all peak together.
- Pre-cool public spaces before afternoon check-in.
- Watch your interval data to find the monthly peak.
Demand Response Without Disturbing Guests
Demand response is a program where businesses agree to reduce their electricity use for short windows when the Texas grid (ERCOT) is under strain — typically late afternoons on the hottest summer days. In exchange, participating businesses earn payments or bill credits.
Where Hotels Cut Their Energy Costs
- Lock in a fixed commercial rate. Comparing 30+ Texas providers at the right time is usually the biggest single lever.
- Add guest-room energy management. Occupancy sensors and key-card or thermostat controls stop conditioning empty rooms.
- Upgrade HVAC and water heating. Efficient units and heat-pump water heating cut the two biggest loads.
- Switch to LED everywhere. Rooms, hallways, and exterior lighting run long hours - the savings compound.
- Run laundry efficiently and off-peak. Full loads, efficient machines, and off-peak scheduling reduce cost and peaks.
- Review demand and interval data. Knowing your peak kW shows whether a different rate structure would save money.
Related Commercial Electricity Guides
Frequently Asked Questions
How much electricity does a hotel use in Texas?
A mid-size Texas hotel of about 100 rooms typically uses 50,000 to 90,000 kWh per month, or roughly $4,150 to $7,500 at the state's average commercial rate of about 8.3¢ per kWh - about 500 to 700 kWh, or $45 to $60 of electricity, per room per month. Small motels use far less; large full-service hotels use much more.
What uses the most electricity in a hotel?
Guest-room and common-area HVAC is by far the largest load because it runs around the clock, followed by water heating for showers and laundry, then lighting. Kitchens, elevators, pools, and laundry make up the rest.
What is the average commercial electricity rate in Texas?
Texas businesses pay an average of about 8.3¢ per kWh as of 2026, roughly 38% below the U.S. commercial average of about 13.5¢. Your actual rate depends on your ZIP code, utility (TDU), usage, and when you sign your contract.
How can a hotel lower its electricity bill?
The biggest levers are locking in a competitive fixed rate, adding occupancy-based guest-room energy management so empty rooms aren't fully conditioned, upgrading HVAC and water heating, switching to LED throughout, and running laundry efficiently and off-peak.
Why do hotels pay high demand charges?
A demand charge is billed on your single highest peak of power draw in kilowatts. On a hot, fully booked afternoon, guest-room A/C, common-area cooling, laundry, and the kitchen run together, creating a high peak that the demand charge bills across the whole month.
What is demand response and can a hotel earn from it?
Demand response pays businesses to reduce electricity use during short summer grid-peak windows. A hotel can pre-cool, ease setpoints in unsold rooms and public areas, and shift laundry off-peak for a short window in exchange for bill credits, with no impact on guest comfort.
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Get a Free Quote Call 866-284-9272Methodology & Sources
Business count: U.S. Census Bureau, County Business Patterns 2023 - 5,643 hotels and motels (NAICS 721110) in Texas. Average commercial rate: EIA / state commercial averages (Texas ~8.3¢/kWh; U.S. ~13.5¢/kWh, 2026). Per-room and total usage estimates use lodging industry benchmarks (about $2,196 in energy per room per year across all fuels; ~500–700 kWh of electricity per room per month). Bills are electricity-only and exclude natural gas, taxes, fees, and account-specific demand charges. Actual figures vary by property size, amenities, occupancy, and utility (TDU).
