How Sustainable Hospitality Became More Profitable: Lessons from The Ranch at Laguna Beach

The Myth That Sustainable Hospitality Costs More Just Got Destroyed

For years, hotel leaders have hesitated to embrace sustainable hospitality practices, convinced that eco-friendly operations would drain their budgets and complicate their supply chains. But what if that assumption is completely outdated?

Kurt Bjorkman, COO of The Ranch at Laguna Beach, recently sat down with Amy Wald on The Conscious Check-in podcast to share a game-changing revelation: sustainable products are now cheaper—or at minimum, cost the same—as conventional alternatives. From wooden room keys that guests actually return to compostable packaging that costs less than plastic, The Ranch has proven that luxury hotels can embrace sustainability while improving their bottom line.

In this conversation, Kurt reveals the strategic shifts, leadership lessons, and cultural priorities that transformed a dilapidated property into an award-winning luxury resort that's both nature-rooted and profitable. Whether you're a hotel GM navigating budget constraints or an ownership group exploring certifications like Beyond Green, this episode offers practical insights you can implement immediately.

From Cruise Ships to Canyon Stewardship: Kurt Bjorkman's Hospitality Journey

Before leading one of California's most sustainable luxury resorts, Kurt Bjorkman spent his early career working on cruise ships—an experience he credits with solidifying his commitment to hospitality and environmental consciousness.

"Working on cruise ships is a very unique experience," Kurt explains. "I think it solidifies you as being in hospitality or crushing you." The intensity of managing 300 passengers during lifeboat drills, the hierarchy of shared cabins below deck, and the 16-hour shifts taught him resilience, empathy, and the importance of genuine human connection in service.

But those years at sea also exposed him to environmental degradation firsthand. "I witnessed coral bleaching, witnessing pollution, witnessing bad practices in different islands I went to," he recalls. Seeing entire reef systems destroyed by sewage runoff left an indelible mark—one that would shape his leadership philosophy years later.

This dual education—in world-class hospitality and environmental fragility—prepared Kurt for his role at The Ranch. Today, he applies the same principle he learned as a scuba diving instructor to every crisis or decision: stop, breathe, and think. "You don't panic, you don't react quickly," he says. "That's how I try to frame anything we do here, whether it's team member or guest or environmental issues."

The Ranch at Laguna Beach: A 10,000-Year Story of Gathering and Regeneration

Nestled in a canyon surrounded by 600-foot walls and 22,000 acres of protected open space, The Ranch at Laguna Beach sits on land that has been a gathering place for over 10,000 years.

Long before the property became a resort, it served as a meeting point for the Acjachemen (Juaneño) and Tongva tribes, who would gather along the creek that still runs through the property today. "This was never a residential location for them, but it was a meeting place," Kurt explains. "It's always been a place where people gathered, which is really special because you feel that when you're here."

In 1871, the Thurston family—still prominent in Laguna Beach today—homesteaded the land through the Homestead Act. They raised cattle and grew watermelons, walnuts, and wild grapes, selling produce to beachgoers even in the 1870s. To meet homesteading requirements, they planted a grove of eucalyptus trees (non-native to California), which later became the site of one of the first Girl Scout camps in the United States in the 1940s. That area is now home to The Ranch's organic farm, still called "Scout Camp."

The resort itself was built in 1960 by Ben and Violet Brown. Their original home now serves as one of The Ranch's signature suites. After decades of operation and periods of neglect, the property was acquired in 2013 by three local residents—none of whom were hoteliers. Their primary motivation? Preserve what they knew was special.

One partner, Mark Christie, grew up playing golf on the property. When a friend mentioned the hotel during a casual ping-pong tournament, Mark's response was telling: "Oh, there's a hotel? I didn't even know there was a hotel there."

That disconnect became an opportunity. From 2013 to 2015, the property underwent a complete rebuild—down to the studs, with new utilities, roofs, and infrastructure—while maintaining the original footprint that honored the land's natural flow. The result: an award-winning luxury resort that feels like it's always been part of the canyon.

Why Sustainable Hospitality Is Now Cheaper (And More Strategic) Than Ever

One of the most persistent myths in hotel sustainability is that eco-friendly operations require premium budgets. Kurt Bjorkman has the data to prove otherwise.

"Flash forward to 2025," he says. "It is cheaper, actually. The items to purchase are the same or less expensive, and you actually see more of a return on the amount of use."

The Wooden Room Key Case Study

When The Ranch switched from plastic key cards to sustainably sourced wooden keys, Kurt was initially concerned about cost. Plastic keys cost about $0.27 each, and with roughly 30,000 keys disappearing annually (either discarded or taken home), the waste was staggering. Each plastic key represented the equivalent of six water bottles worth of plastic entering landfills.

The wooden keys cost slightly more upfront—but guest behavior changed immediately.

"Once they saw that key and they understood the story of the why, they're like, 'oh, this is cool,'" Kurt recalls. "Everyone brings those room keys back." The reduction in replacement costs, combined with the elimination of 30,000 plastic keys per year, made the switch financially and environmentally advantageous.

Aluminum Water Bottles vs. Plastic: A Profitability Shift

When The Ranch first committed to eliminating single-use plastics, aluminum water bottles were a "novel" and expensive choice. Today, they're competitively priced—and major hotel brands like Hilton and Marriott have committed to eliminating plastic water bottles from hundreds of thousands of rooms by 2028.

"That's a huge, huge thing that really moves the needle," Kurt notes. "I don't think the big brands get enough credit for that."

The Surfrider Foundation Study

The Surfrider Foundation recently published research quantifying the cost of sustainable products versus conventional alternatives in hotels and restaurants. The findings? It is now cheaper to operate sustainably in most categories.

For hotel operators still hesitant to make the switch, Kurt's advice is simple: "Just ask your vendor for the product and they'll have a dozen samples and examples." Suppliers have caught up with demand—sustainable options are now standard offerings, not specialty items.

Consumer Sentiment Has Shifted: Sustainability Is Now a Top-Three Booking Factor

Five years ago, high-spending travelers ($500+ per night) rarely listed sustainability as a factor when selecting a hotel. It didn't crack the top ten priorities.

Today? It's in the top three.

"The consumer, through their own education and through knowledge and media bringing these stories to light, has shifted that sentiment," Kurt explains. Studies from Preferred Hotels and Resorts and Virtuoso confirm this trend: travelers either actively seek sustainable properties or expect hotels to meet a baseline standard.

The shift is so pronounced that conventional practices now trigger disappointment. "They get here and you have a plastic water bottle in the room. They're going to go, 'oh, that's kind of weird,'" Kurt says. "In the past it wasn't weird. It was like, 'oh great.' But now it's like, 'oh, why do they have a plastic water bottle?'"

This change in consumer expectations creates a strategic advantage for hotels that lead rather than follow. Properties like The Ranch aren't just meeting demand—they're shaping it, building brand loyalty, and commanding premium rates because sustainability is now inseparable from luxury.

Sustainability vs. Regenerative: What Hoteliers Need to Know

As the hospitality industry matures in its environmental commitments, a debate has emerged: Should we use the term "sustainability" or "regenerative"?

Kurt acknowledges the tension. "Sustainability means keeping things the way they are. And so technically, that's not what you want to do. We don't want to keep things the way they are. Regenerative, on the other hand, is the fact that you're constantly growing and creating new things."

But he's pragmatic about language. "For now, I think sustainability is still the term that most consumers understand," he says. "Whether it's the right term or not, it's what it means to the consumer right now."

The semantic debate matters less than the outcomes. Hotels that achieve measurable impact—through certifications like Beyond Green, LEED, WELL, or GSTC—demonstrate credibility regardless of terminology.

Kurt also coined a phrase that hospitality leaders should internalize: "Nature is our economy here." For hotels surrounded by protected land, ocean, or fragile ecosystems, environmental stewardship isn't optional—it's foundational to long-term profitability.

That said, Kurt encourages even urban hotels to engage. "You could be in a large city. You're still in nature," he notes. "You have different responsibilities in a city hotel and different opportunities, but you still have a lot of opportunities to embrace where you are." Examples include supporting harbor restoration projects, creating rooftop gardens, or partnering with local parks.

Hiring for Heart: How The Ranch Builds a Culture of Conscious Hospitality

At The Ranch, every single hire goes through a final interview with Kurt—a rarity in the hotel industry, especially for properties with hundreds of team members.

"Hospitality is driven by the heart," he explains. "Somebody can have a lot of technical skills, all the right education, but if they don't have the heart for hospitality, they're not going to make it."

He calls it the "vibe check." If a candidate doesn't align with The Ranch's culture—even if they're qualified on paper—they're not hired. "Every time we've done a desperation hire, it's like, 'we need that person, we need them tomorrow,' and we kind of decide against our better judgment... they don't last very long, unfortunately."

This philosophy extends to sustainability training. Rather than overwhelming new hires with jargon or metrics, The Ranch integrates environmental consciousness into daily operations so naturally that "nature tells a story when they're here."

The result? A team that embodies the property's values without needing constant reminders. Guests notice. Staff retention improves. And the culture becomes self-reinforcing.

Beyond Green Certification: What It Takes (And Why It Matters)

The Ranch at Laguna Beach is one of the five founding properties of Beyond Green, a collection of 67 hotels worldwide committed to verified sustainable practices.

Kurt serves on Beyond Green's advisory board and recently completed the rigorous recertification process—a one-week inspection that includes soil samples, product label audits, and staff interviews to ensure everyone understands the property's sustainability commitments.

"It's no joke," he says. "There's properties that have dropped off and lost their Beyond Green status."

The certification, part of Preferred Hotels and Resorts, signals to travelers and industry peers that The Ranch's sustainability efforts are measurable, transparent, and continuously improving. It's not greenwashing—it's accountability.

For hoteliers considering certification, Kurt's message is clear: the process is demanding, but the brand differentiation, guest loyalty, and operational improvements make it worthwhile.

Key Takeaways for Hoteliers

1. Sustainable products are now cost-competitive. Don't let outdated assumptions about pricing prevent you from switching to eco-friendly alternatives. Work with your existing vendors—they likely already stock sustainable options.

2. Guest behavior shifts when you tell the story. Wooden room keys, aluminum bottles, and compostable packaging aren't just operational changes—they're conversation starters that build emotional connection and brand loyalty.

3. Hire for heart, train for skills. Technical expertise matters, but cultural alignment and genuine hospitality instincts are irreplaceable. Build your team around people who naturally embody your values.

4. Nature is your economy—even in cities. Whether you're surrounded by canyons or skyscrapers, identify your environmental context and engage meaningfully. Proximity to parks, waterways, or green spaces offers partnership opportunities.

5. Certifications create accountability. Programs like Beyond Green, LEED, or GSTC aren't just marketing tools—they're frameworks that ensure continuous improvement and protect against greenwashing.

   
   

Final Thoughts: People, Not Buildings, Make Hospitality Regenerative

When asked to finish the sentence, "The Ranch exists because…," Kurt didn't hesitate: "Of amazing people."

"You can have gorgeous buildings. You can have amazing facilities. They're nothing without people in them that have hearts for hospitality," he reflects. "It's about the people."

That philosophy—rooted in community, stewardship, and genuine care—is what separates transactional hotels from transformational ones. The Ranch at Laguna Beach proves that sustainable hospitality isn't about sacrifice. It's about alignment: aligning operations with values, guest expectations with authentic impact, and profitability with planetary health.

For the full conversation with Kurt Bjorkman, including insights on scuba diving leadership lessons, the Girl Scout camp history, and his Muppet energy philosophy, listen to the complete episode of The Conscious Check-in.

Ready to Elevate Your Hotel's Sustainability Strategy?

If you're inspired by The Ranch's journey and want to explore how sustainability can drive profitability, guest loyalty, and industry recognition at your property, Amy Wald and the Greenluxe team are here to help.

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Whether you're pursuing Beyond Green certification, redesigning your operations for climate resilience, or training your team in conscious hospitality practices, Greenluxe offers the expertise, industry connections, and strategic guidance to make sustainability profitable.