Europe's Hotels Risk Lights Out in Energy Crisis Spawned by Ukraine War

Hotels in Europe have enjoyed months of strong bookings as travelers have sought to escape the cares of the world after a tough pandemic. Yet real-world pressures are intruding on the guest experience at hotels and other travel accommodations. The Ukraine war has led to a spike in energy costs that are squeezing hotels and other businesses across Europe.

In Scotland, the Crieff Hydro Family runs hotels situated in what it calls the "widescreen" beauty of the countryside. But the hotel group's energy costs across a half-dozen of its boutique and family-friendly properties are soaring, rising from about $600,000 (£600,000) last year to about $1.6 million (£1.6 million) this year.

Nearly every hotelier across the Continent is planning for soaring energy costs. Russia has slashed the supply of natural gas — which is critical for generating electricity and heat for many European businesses. Energy prices are at historic highs as countries work to boost supply. While European lawmakers promise about $280 billion (€280 billion) in relief to businesses and consumers, the crisis appears to be outpacing the planned aid.

In Spain, the government has mandated that hotels, airports, stores, and other businesses must keep their thermostats at certain minimum levels. Beginning last month and lasting through