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Metro Hotels to Build New Accommodation Wing at Perth Property

Transmetro Corporation Limited, the ASX-listed hotel operator which trades as Metro Hospitality Group, has announced its hotel division, Metro Hotels, will add 53 rooms to its current total inventory of 958 rooms Australia-wide.

Construction has commenced on a new wing of 53 rooms at its hotel property in Perth. After its acquisition by Transmetro Corporation in 1988, Metro Hotel Perth is marking its 25th anniversary this year as a Metro Hotel.

The existing 10-storey Metro Hotel Perth has 94 rooms which, with the addition of the 53 new rooms, will take it to 147 rooms. The redevelopment will also include major renovations to the lobby area of the hotel, pool area, restaurant and car park.

According to Metro Hospitality Group’s Chief Operating Officer George Bedwani, Metro Hotel’s Perth property has performed extremely well as a result of the sustained strength of mining-related business travel and increased demand for affordable accommodation in close proximity to the city.

Company chairman John McEvoy said “There is demand for new hotel rooms in Perth however building costs are a major hurdle. The cost of building new hotels is largely unviable, particularly with the buoyant Perth economy increasing construction costs”.

“The fact that we already own the land and have in-situ support facilities and levels of parking, which will service the new building, has made it feasible for us to build the new wing,” McEvoy added.

The new hotel wing is the first phase of an overall redevelopment of the company’s Perth site. A second phase will see four levels of luxury apartments added in another separate building. Comprising 12 mainly two and three bedroom apartments, the new development will likely be outsourced to a specialist residential property developer.

In a separate development, Metro Hotels has entered into a management agreement with interests associated with the 97-unit G60 apartments development in Gladstone to operate apartments in that building. Apartments G60 – Managed by Metro Hotels commenced trading this week. Metro Hotels already operates a property in the city, Metro Hotels & Apartments Gladstone. This property comprises one bedroom apartments, whereas the new complex consists entirely of two and three-bedroom apartments.

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