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Above the Clouds

HVAC Efficiency in Hotels: PTAC vs. VRF Systems – A Comprehensive Analysis

Updated: Apr 20, 2024


In the hotel industry, selecting the right HVAC system is crucial for both guest comfort and operational efficiency. This blog provides an in-depth comparison between Packaged Terminal Air Conditioner (PTAC) units and Variable Refrigerant Flow (VRF) systems, focusing on their efficiency, cost, and return on investment (ROI), backed by detailed mathematical calculations.


PTAC Units: A Traditional Choice

PTAC units are widely used in hotels for their ease of installation and maintenance.





Efficiency and Cost Analysis

  • Specifications: 135 rooms, each with a 9,000 BTU PTAC unit (EER of 11.8).

  • Energy Consumption Calculation:

  • Full Occupancy (104 days/year): 9,000 BTU/hr11.8 EER=0.76 kW11.8 EER9,000 BTU/hr​=0.76 kW per room. For 135 rooms, 0.76 kW/room×135 rooms=102.6 kW0.76 kW/room×135 rooms=102.6 kW. Annual consumption for full occupancy days is 102.6 kW×24 hours/day×104 days=255,974.4 kWh102.6 kW×24 hours/day×104 days=255,974.4 kWh.

  • 70% Occupancy (261 days/year): 102.6 kW×0.7×24 hours/day×261 days=471,278.4 kWh102.6 kW×0.7×24 hours/day×261 days=471,278.4 kWh.

  • Total Annual Consumption: 255,974.4 kWh+471,278.4 kWh=727,252.8 kWh255,974.4 kWh+471,278.4 kWh=727,252.8 kWh.

  • Annual Energy Cost: At $0.10 per kWh, the cost is $72,725.28.

  • Initial Cost: $250,000 for the entire setup.

While PTAC units have a lower initial cost, their higher annual energy costs can add up over time.


VRF Systems: A Modern, Efficient Solution

VRF systems are known for their efficiency and adaptability, making them a suitable choice for larger hotels.





Efficiency and Cost Analysis

  • Specifications: A 96-ton system designed to serve 135 rooms.

  • Energy Consumption Calculation:

  • Full Occupancy (104 days/year): With an IEER of 20.8, the full-load equivalent consumption is 1,152,000 BTU/hr20.8=55.38 kW20.81,152,000 BTU/hr​=55.38 kW. Annual consumption for full occupancy days is 55.38 kW×24 hours/day×104 days=138,099.2 kWh55.38 kW×24 hours/day×104 days=138,099.2 kWh.

  • 70% Occupancy (261 days/year): 55.38 kW×0.7×24 hours/day×261 days=202,040.88 kWh55.38 kW×0.7×24 hours/day×261 days=202,040.88 kWh.

  • Total Annual Consumption: 138,099.2 kWh+202,040.88 kWh=340,140.08 kWh138,099.2 kWh+202,040.88 kWh=340,140.08 kWh.

  • Annual Energy Cost: At $0.10 per kWh, the annual cost is $34,014.01.

  • Initial Cost: $750,000 for the entire system.

Despite its higher initial cost, the VRF system offers significant savings in annual energy costs.


ROI Analysis

Payback Period for VRF System

  • Additional Initial Cost: $500,000 (difference between VRF and PTAC initial costs).

  • Annual Savings: $38,711.27 (difference in annual energy costs between PTAC and VRF).

  • Payback Period: $500,000$38,711.27≈12.9 years$38,711.27$500,000​≈12.9 years.

After approximately 12.9 years, the VRF system begins to provide net savings, making it a financially sound choice in the long run.


Conclusion

While PTAC units are less expensive upfront, VRF systems offer greater energy efficiency and lower long-term operational costs. The initial higher investment in VRF systems can be recouped over time, making them a more sustainable and cost-effective solution for hoteliers.


Resources

  • ASHRAE Handbook - HVAC Systems and Equipment

  • ENERGY STAR Program Requirements for PTAC

  • AHRI Standard 1230 - Performance Rating of VRF Equipment

  • U.S. Department of Energy - Guidelines for Selecting Cool Roofs

  • International Energy Agency (IEA) - Energy Efficiency Indicators

  • Building Owners and Managers Association International - Energy Efficiency Program


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