A 400-acre resort has found an innovative way to supply hot water across multiple buildings, restaurants, and guest rooms spread over a large property. By replacing outdated boilers with a network of tankless water heaters, they dramatically improved reliability while cutting energy costs. Below is a closer look at what they did, why they did it, and what results they’re seeing.
Massive Demand for Hot Water
When dealing with a large resort (345 to 400 acres in size), the daily hot water requirements can be immense. Guests and staff need consistent hot water for:
• Guestrooms
• Restaurants and kitchens
• Laundry and cleaning operations
• Spas, pools, and other amenities
Previously, the resort depended on two large boilers—and a third one that served mostly as a spare-parts donor. This outdated system struggled to keep up with demand and caused frequent hot-water disruptions that negatively impacted the guest experience.
Migrating to a Tankless System
Compact, Modular Design
Tankless water heaters can be arranged in racks or banks, making it easier to scale up or down based on the building’s footprint. In this resort’s case, they installed multiple units side by side, each capable of heating water on-demand. This setup:
• Frees up floorspace by eliminating large boiler tanks
• Allows individual units to be taken offline for maintenance without disrupting the entire system
• Facilitates easier delivery and installation—units can be wheeled in rather than requiring cranes or major demolition
Efficiency and Reliability
Tankless systems heat water only when needed, reducing the standby losses associated with storage tanks. Maintenance engineers note that with the resort’s new configuration, they no longer face daily calls about lukewarm or cold showers. Multiple units can stagger their firing based on real-time water usage, ensuring consistent temperature and pressure.
Significant Cost Savings
Annual Utility Reduction
Before the upgrade, the old boilers continuously heated massive volumes of water. By switching to tankless heaters that activate on-demand, the resort saved large amounts of energy. Maintenance staff report substantial drops in therm usage—translating to over $100,000 in annual savings at older natural gas prices. With rising fuel costs, the savings would likely be even higher today.
Less Frequent Guest Recovery Costs
When the old system failed, guests would sometimes endure lukewarm showers. Hotels commonly compensate unhappy guests by discounting or comping rooms, leading to lost revenue. By improving hot-water reliability, the resort drastically cut these compensation payouts.
Key Takeaways for Large Facilities
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Phased Approach
Large resorts may have multiple mechanical areas spread across the property. Replacing everything at once might be disruptive. Instead, a targeted or phased installation of tankless units can address the biggest pain points first. -
Check Water Quality
Some parts of the system may require soft water to reduce scale buildup. Filters and scheduled descaling ensure peak performance. -
Maintenance Simplification
Each tankless heater has its own strainer and can be isolated if needed. The engineering team cites minimal maintenance—mainly occasional cleanings and annual descaling for certain units. Many modern tankless models also provide error codes to speed up troubleshooting. -
Designing for Distance
Some buildings can be a quarter-mile away from the mechanical room. Using recirculation lines, large-diameter distribution piping, or multiple tankless units closer to end fixtures helps deliver hot water quickly. -
Manufacturer Support
For commercial projects, direct collaboration with the tankless manufacturer can streamline design and installation. Engineers and retrofit specialists often assist with system sizing, rack layout, and integration of recirculation pumps.
Making the Decision
Switching from central boilers to a distributed tankless network requires an upfront investment, but the payoff can be enormous. Key incentives include:
• Lower operating costs through reduced standby losses
• Enhanced guest satisfaction and fewer service disruptions
• Modular design that simplifies maintenance and future expansion
• Substantial ROI, especially if regional energy prices are high
Final Thoughts
This resort’s experience highlights the flexibility and efficiency of tankless water heaters on a commercial scale. By providing on-demand hot water, these systems minimize energy waste, reduce downtime, and ensure guests have reliable service—even when they’re a quarter mile from the mechanical room. For facility engineers exploring a similar upgrade, the potential benefits go beyond energy savings, extending to happier customers and a smoother operation overall.
