TRANSMETRO Corporation has started construction of a new wing at its Metro Hotel Perth, adding 60% more rooms.
The new building at the southern end will comprise 53 rooms taking the total inventory to 147 rooms.
The new hotel wing is stage one of a two-part development approved for the site. The company plans to develop an additional 12 apartments adjacent to the northern end of the existing hotel.
The property was acquired by Transmetro Corporation in 1988. Chairman John McEvoy said the hotel is operating at 79% and achieving a $202 average daily rate, reflecting the buoyant demand for hotel accommodation in Perth.
“There is a demand for new hotel rooms in Perth however building costs are a major hurdle. The cost of building new hotels, particularly with the buoyant Perth economy pressuring construction costs, makes it largely unviable for new hotel-builds.
“The fact that we already own the land and have in-situ support facilities such as reception, dining and conference facilities, and parking, which will service the new building, has made it possible for us to build the new wing on a basis where it is feasible,” he added.
In other related news, 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.
Property Review
