Rethinking Hotel HVAC: Construction and Cost

At HotelSpaces 2025, Anshuman Bhargava, GM & Business Head at AIIR Holdings, Inc., discussed how innovation in HVAC can drive brand loyalty with hotel guests & boost construction profits in hotels.

Noise complaints. Humidity issues. Hotel rooms that never quite feel right. He argued that these aren't only guest complaints—they're design decisions that show up years later in construction cost, coordination headaches, and operating performance.

His point was simple: when HVAC isn’t prioritized early, most of the opportunities to optimize guest room space, cost, and long-term performance are already gone. Room dimensions are set. Mechanical closets consume usable square footage. Trade coordination tightens, and flexibility drops. From a construction standpoint, that shows up quickly—roof reinforcement, longer refrigerant runs, additional ducting, and tighter installation tolerances.

New refrigerants add another layer of complexity—leak detection, monitoring requirements, and liability considerations that didn't exist a few years ago.

That framing set up the rest of the conversation: how newer HVAC approaches are starting to change those trade-offs.

AI, Applied to Performance (Not Just Controls)

One shift Bhargava highlighted was how AI is moving beyond smart thermostats and into the HVAC system itself.

By processing inputs such as temperature, humidity, occupancy patterns, and outdoor conditions directly at the unit level, systems can adjust dynamically—reducing noise, minimizing temperature swings, and preconditioning rooms before guests arrive. The goal isn't novelty; it's consistency and predictability.

That same data can also support diagnostics and preventive maintenance, helping operators identify issues earlier and reduce reactive service calls over time.

Why Form Factor Matters on the Drawings

Another theme that resonated with the room was space.

Traditional in-room HVAC systems often require dedicated closets or bulky units that encroach on usable square footage. Bhargava walked through how consolidating system components into a compact, through-wall form factor can eliminate those closets altogether.

He showed a before-and-after guest room example from a newly opened Hilton Tempo in Pigeon Forge, TN. By rethinking how system components were incorporated into the room, the layout reclaimed approximately 15 to 20 square feet of usable guest room space—often translating to $5,000–$6,000 in value per key—creating a more open feel while maintaining brand standards.

This kind of flexibility creates opportunities to modernize room layouts, optimize material and system costs, and differentiate portfolios without adding construction complexity.

Beyond the math, the construction implications were straightforward: fewer building penetrations, less ducting, and fewer trades stacked in the same zone.

What the Cost Data Signals

The numbers Bhargava shared reinforced a broader point.

Energy efficiency gains in the 30–40% range, combined with utility rebates cited between $500 and $3,000 per unit—sometimes covering both equipment and labor—can materially shift project economics. Faster serviceability matters too. Bhargava noted that units can be replaced in an hour or two—minimizing downtime and disruption over the life of the building.

Taken together, HVAC becomes less of a background system and more of a measurable lever—one that affects space planning, construction risk, and ongoing performance.

Why This Matters Earlier Than You Think

The takeaway wasn't about chasing new technology. It was about how HVAC is evaluated.

When mechanical systems are considered alongside layout, structure, and long-term operations—not after—the ripple effects are easier to manage. Space planning improves. Coordination tightens. Performance becomes more predictable.

Watch the full talk from HotelSpaces here →