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Success Stories

REAP Grant Helps Hotel Go 100 Percent Solar

Nicole King
Clean Energy
Grants
Inflation Reduction Act
REAP
Solar Energy
Man standing in front of Desert Aire Hotel sign
Nate Mandalia, co-owner of the Classic Desert Aire Hotel, poses for a photo with the hotel sign and solar panels in the background in Alamogordo, New Mexico, on August 21, 2024

While many companies build new hotels for efficiency, the Classic Desert Aire Hotel in Alamogordo, New Mexico, built in the 1950s, was not. Despite that, the hotel’s large roof recently offered an unexpected benefit for sustainability.

“This property was built almost for solar — Perfect south facing roofline. All of this flat open space. Already a 22-degree pitched roof,” shared Nate Mandalia, co-owner of the Classic Desert Aire Hotel. “We couldn’t have asked for a better layout for solar.”

Mandalia and his father own the 100-room, two-story hotel. The hotel layout is like many older style hotels with the rooms arranged in a large horseshoe.

Workers standing in a row in front of counter
Employees at the Classic Desert Aire Hotel pose for a photo in the hotel lobby and gift shop in Alamogordo, New Mexico, on August 21, 2024. 

“When it opened, it was a premier property,” said Mandalia. “It was the first property with air conditioning in the southwest area, and the first million-dollar property in the county that was owned by civilians.”

Now, the Classic Desert Aire Hotel can add another first to its name. Thanks to help from a USDA Rural Development “Rural Energy for America Program” grant, the hotel is the first in the area to house a large solar array on its roof.

“I wanted solar because I know it is something I would look for and I care about it,” said Mandalia. “I know a lot of travelers care about this as well. I’m trying to do the things that I think travelers care about. They know that they are at a property that is environmentally friendly.”

Solar became important to the business for environmental reasons, but also for the family-owned business’s finances. The hotel, which is on a “time of use” energy plan, cannot control when guests use the most energy, and energy bills grew quite high.

“It made sense from a business perspective, whether I felt passionate about it or not,” said Mandalia. “We projected it — the original return on investment was six years. That’s a solid ROI for any business.”

Since the system went online in May, solar produced 100 percent of the hotels energy. Mandalia said he expects that percent to drop in the winter months.

“We projected solar would cover 40 to 60 percent, but I think it’s going to be more like 70 to 85 percent of offset,” he shared. “Which is great considering what I used to pay for electricity.”

The solar array on the hotel roof is not the only unique feature at the hotel. Since the hotel dropped its franchise affiliation, it allowed the hotel to make this site one of a kind. The room decor is uniquely New Mexican and the outside walls display murals painted by a local Native American artist.

“We worked with an elder from the Apache nation who is a trained artist who has won many awards,” shared Mandalia. “I see the Santa Fe, New Mexican charm in the construction. When we partnered with our artist, Pablo, he saw it as well and he was able to do the beautiful pictograph artwork.”

man standing in unfinished room with wooden furniture
Nate Mandalia, co-owner of the Classic Desert Aire Hotel, poses for a photo in a room currently under renovation in Alamogordo, New Mexico, on August 21, 2024. 

 

The rooms also host art from local artists and decorations with a New Mexican flair. Mandalia said he is renovating some rooms with solid wood furniture as a homage to the past logging industry in the area. The hotel recently hired a new chef to make the food more local as well.

“He is onboard, and we are building him out a full restaurant,” said Mandalia, speaking about the newly hired chef. “He is going to be bringing that southwest influenced cuisine down here.”

Mandalia shared he is using the money he saves on energy to continue paying his workers a living wage while also keeping room rates low for guests.

“I know we have an impact on the community because the community tells me all the time ‘I love your hotel, it’s our favorite hotel in the area’,” said Mandalia. “What we do is embrace what the local heritage is, which is obviously heavily influenced by Native American culture.”

Mandalia shared he hopes to install an electric car charging station at the hotel in the future for guests and others driving through the area. He also hopes to use some of the savings to apply for another REAP grant to help replace the windows.

“It will reduce room noise, reduce heat and cold transfer in the rooms, and aesthetically it is going to be nicer,” he said. “I’m very hopeful that that’s the next stage for us, to get the project approved for the windows on the property.”

If you wish to visit a hotel with a New Mexican vibe powered by the New Mexican sun, the Classic Desert Aire Hotel is a great option, thanks to help from Rural Development.

“I’ve got a passion for our community. I’ve got a passion to be able to help rural markets, and I think solar is a great way to do it,” said Mandalia. “We are just a small family business, and we don’t have the deep pockets that a big corporate entity might have, so working with Rural Development to get this grant allowed us to take the step to do this.”

For more information on how Rural Development programs might help you or your business, visit the programs page.

Obligation Amount:
$79,960.00
Year(s) of Obligation:
Congressional District:
  • New Mexico: District 2