China consumes more energy and emits more carbon dioxide than any other country. The building sector accounts for nearly 1/3 of the total national energy consumption in China; thus, it is critical to find a solution for improving buildings’ energy efficiency. Under the market-oriented mechanism, constrained by the energy performance contracting (EPC) mode, energy service companies (ESCOs) play an important role in improving energy efficiency for high-energy-consumption industries, including the building sector. The aim of this study is to determine the strategy for boosting the building ESCO industry. By conducting a strength, weakness, opportunity, and threat (SWOT) analysis, this paper presented the status of the building ESCO industry in China and proposed alternative strategies. By utilizing a conventional multi-criteria decision-making method, namely, the Analytic Network Process (ANP), this study provides a quantitative basis to analytically determine the ranking of the factors in SWOT analysis and select the best strategy to promote the development of the building ESCO industry. The results showed that the ANP-SWOT is a viable and highly capable methodology that provides invaluable insights for strategic management decisions in the building ESCO industry, and a set of strategies for promoting ESCO development in the building sector were proposed based on this approach.

Hotel building is a type of high-energy-consuming building and most existing hotel buildings need energy efficiency improvement in China. Energy performance contracting (EPC) is considered a win-win mechanism to organize building energy efficiency retrofit (BEER) project. However, EPC mechanism has been introduced into China relatively recently and many EPCs have not been successful in building energy efficiency retrofit projects. This research aims to develop a set of critical success factors (CSFs) of EPC for sustainable energy efficiency retrofit (BEER) of hotel buildings in China. Semi-structured interviews and a questionnaire survey with practitioners and other professionals were conducted. The findings reveal the relative importance of the 21 number of identified success factors. In order to explore the underlying relationship among the identified critical success factors (CSFs), factor analysis method was adopted for further investigation, which leads to grouping the 21 identified CSFs into six clusters. These are (1) project organization process, (2) EPC project financing for hotel retrofit, (3) knowledge and innovation of EPC, sustainable development (SD), and M&V, (4) implementation of sustainable development strategy, (5) contractual arrangement, and (6) external economic environment. Finally, several relevant policies were proposed to implement EPC successfully in sustainable BEER in hotel buildings.