Hugo Padrão: “Sustainability Is No Longer Just About Adopting Good Environmental Practices, but About Integrating It Into Hotel Management”

Source: TNews

On Thursday, July 9, Mercan Properties Group received the Green Key certification in Madeira for 10 hotels across its portfolio: Casa da Companhia, Origine Porto Gaia, Arts Hotel Porto, Sé Catedral Hotel Porto, Fontinha Hotel, Four Points by Sheraton Matosinhos, Holiday Inn Évora, Hilton Garden Inn Évora, Holiday Inn Beja, and Hotel Indigo Albufeira.

Following this recognition, which acknowledges the hotels’ commitment to environmental sustainability and responsible management, TNews interviewed Hugo Padrão, Director of Sustainability at Mercan Properties Group, to better understand how sustainability is being integrated into the Group’s strategy and what challenges lie ahead.

“Green Key Validates What We Already Do Every Day”

For Hugo Padrão, the Green Key certification awarded to 10 hotels represents the validation of a strategy that Mercan Properties Group has been strengthening over the past several years.

“Mercan Properties Group is committed to continuously improving its ESG performance throughout its entire value chain. While this commitment spans different areas of activity, hotel operations are one of the Group’s main sources of value creation and the area where sustainability becomes most visible on a daily basis through the way our hotels are managed, the procedures that are implemented, and the engagement of our teams,” he explains.

According to Padrão, the certification provides independent verification that this commitment is reflected in the hotels’ day-to-day operations.

“The Green Key certification awarded to 10 of our hotels validates, through an external and independent assessment, that these practices and commitments are effectively embedded into our operations. For Mercan Properties Group, this recognition reflects the strategy we have been developing to build a hotel portfolio that is increasingly aligned with our ESG commitments, as well as the dedication of each hotel team to integrating sustainability into daily operations.”

A Strategy That Begins Before Hotels Open

Asked about the role sustainability plays within the Group’s strategy, Hugo Padrão explains that it is no longer viewed simply as a competitive differentiator. “Our goal is precisely that: to progressively integrate sustainability into the way we develop and operate our hotels, considering it throughout the entire lifecycle of our assets, from the investment phase through operations.”

That vision begins at the project development stage. “From an investment perspective, we have been strengthening the integration of ESG criteria into our decision-making processes, seeking to develop projects that contribute to the enhancement of the communities in which they are located, based on urban regeneration, the restoration of built heritage, and the creation of value for local communities and economies.”

During the design and construction phases, the Group seeks to align its developments with international standards such as LEED and BREEAM, while operationally focusing on the implementation of procedures, team training, and the gradual adoption of best practices. “Naturally, this work also becomes a differentiating factor, but above all, it reflects a long-term vision of how the Group intends to develop its assets and manage its business.”

Although he emphasizes that most of the Group’s hotels are recently built and were designed with a strong focus on energy and water efficiency, Hugo Padrão points out that Green Key primarily evaluates daily operations. 

Among the measures implemented are “monitoring and setting targets to reduce energy and water consumption, as well as waste generation, including food waste; prioritizing local suppliers and products with a lower environmental impact; and engaging guests by encouraging more responsible behaviors throughout their stay.”

“Sustainability Investments Are Already Delivering Returns”

From his perspective, many of the investments made in sustainability are already producing measurable benefits. “Many sustainability investments are already delivering clear returns, particularly in areas such as energy efficiency, water management, waste reduction, and food waste prevention, where operational gains are easier to measure.”

At the same time, he acknowledges that some initiatives generate returns over a longer period. “There are, naturally, initiatives whose return is less immediate, such as team training, guest awareness, community engagement, or certain certifications. Nevertheless, these initiatives create value by reducing risks, strengthening our reputation, and meeting the expectations of brands, investors, corporate clients, and partners.”

For that reason, he adds, “we view these investments not only from the perspective of short-term financial returns, but also for their contribution to long-term competitiveness and value creation.”

The ESG Agenda Goes Beyond the Requirements of International Brands

Mercan Properties Group works with several international hotel brands, but Hugo Padrão believes there is now significant alignment among their sustainability requirements. “There is growing convergence across the hospitality industry around sustainability. The ESG requirements of the leading international brands we work with are, in most cases, very similar, differing mainly in the maturity of certain tools, processes, and monitoring systems.”

However, he emphasizes that the Group’s strategy extends beyond those requirements. “Mercan Properties’ ESG Agenda 2030 goes beyond the specific requirements established by the various hotel brands. Our collaboration with the brands’ sustainability teams has been highly constructive, enabling the exchange of knowledge, best practices, and experiences from other hotels and markets. Rather than viewing these requirements as overlapping, we see this relationship as a continuous opportunity for learning and improvement.”

Portuguese Hospitality Is Becoming More Mature, but Challenges Remain

According to the Director of Sustainability, Portugal’s hospitality sector has made significant progress in recent years. “The Portuguese hospitality industry has shown very positive progress in sustainability. The growing number of certified hotels, the increasing integration of ESG criteria into new developments, and initiatives such as Turismo de Portugal’s Turismo 360.º reporting project demonstrate the sector’s growing maturity and commitment to these issues.”

He also notes that Portugal currently ranks sixth worldwide in the number of Green Key-certified establishments. Despite this progress, he believes the challenge extends well beyond implementing good environmental practices.

“In a constantly evolving industry, true hospitality is increasingly associated with authenticity, respect for the environment, and the ability to generate lasting positive impacts. For this reason, I believe the industry’s challenge is no longer simply about adopting good environmental practices, but about integrating sustainability as a strategic dimension of hotel management, influencing the way hotels invest, operate, position themselves in the market, and create value for guests, employees, investors, and local communities.”

Sustainability Is Playing an Increasing Role in Guests’ Decisions

While recognizing that location and value for money remain the primary factors influencing hotel selection, Hugo Padrão believes guests are becoming increasingly attentive to environmental performance. “Guests continue to choose hotels primarily based on location, the quality of the experience, and value for money. However, there is growing awareness of sustainability issues and increasing expectations that hotels adopt responsible operational practices.”

This trend is particularly evident in the corporate segment. “This is especially evident in the corporate market, where many companies already have their own ESG policies and increasingly prioritize hotels that demonstrate a certain level of sustainability performance, often supported by recognized certifications. The same applies to some of the hotel brands we work with, as well as partners and other stakeholders.”

For that reason, he concludes, “even if sustainability is not always the primary deciding factor for every guest, there is a clear market trend toward valuing organizations that can demonstrate this commitment in a credible way.”

Goal: Certify All Operating Hotels by 2030

Following the Green Key certification, the Group has already established its next objectives. “The Green Key certification is an important milestone, but it represents only one step within a much broader journey. Mercan Properties Group has defined a set of sustainability goals and commitments through 2030, aligned with the leading international ESG trends and presented in its first ESG Report.”

Among those commitments are integrating sustainability certifications into at least 80% of new hotel developments from the design phase onward and obtaining at least one environmental certification for every hotel in operation.

At the same time, the Group plans to strengthen environmental performance monitoring through digital systems, increase supplier engagement with its ESG objectives, and reinforce its relationship with local communities.

“We also want to continue engaging guests and employees throughout this journey, ensuring that sustainability becomes an integral part of the experience our hotels provide and of the way we engage with the communities where we operate.”