Individual Report on Metro Hotels

Metro Hotels is the subject of this case study report. The organization's history and current operations are covered in this report. The business is a well-known hospitality establishment with headquarters in Sydney, Australia. Analysis has been done on socio-cultural, economic, and environmental trends and how these affect the organization. The investigation also looks into the connections between Metro Hotel and outside organizations. Finally, this paper describes the organization's strategies for addressing the patterns.

Metro Hotels
Table of Contents
Introduction 1
Organisation History & Current Operations 1
Interaction with external Organisation 2
Trends and their impact on organisation 3
Strategies 4
References 5
Introduction
This case study report is based on Metro Hotels. This report discusses the organisation history
and its current operation. The company is a renowned hospitality organisation located in Sydney,
Australia. Socio-cultural, economic and environmental trend and their impact on the organisation
has been analysed. Furthermore, the report investigates the relationship between Metro Hotel
with external organisation. At last, this report outlines strategies that the organisation has
implemented to address the trends.
Organisation history & current operations
Metro Hotels was established in 1976 in Sydney by John McEvoy. He is the current chairman
and managing director of Transmetro Corporation Limited, which he formed in 1979. The Metro
Hospitality Group, the operating arm of Transmetro Corporation, owns and operates Metro
Hotels. George Bedwani was the company's chief operating officer from 2007 to 2015.
Following George Bedwani's retirement in 2015, Peter Frawley joined the company and is now
the Managing Director.
Metro Hotels is Australia's oldest owned and managed hotel chain, and has been providing hotel
accommodations for business and leisure travelers for over 40 years. Metro manages hotels and
apartments in strategic locations and major cities throughout Australia, including Sydney,
Melbourne, Perth, and Darwin. The company owns and operates eight Sydney hotels, two in
Gladstone, one in Ipswich, Perth, Darwin, and Groote Eylandt, and two pubs in Adelaide and
Sydney. In 2007, Metro Properties formed a marketing alliance with Argyle Hotel Group, an

Australian hotel management company with a diverse portfolio of hotels in China. Furthermore,
the organization is a member of the Qantas Frequent Flyer program.
Metro Hotels began operations in the mid-1970s with the acquisition of three hotels: the Metro
Inn Edgecliff on New South Head Road in 1976, the Metro Hotel Miranda in the Sutherland
Shire in 1978, and the Metro Inn Ryde on Victoria Road in 1977.
Metro Hotels took over the management of Brisbane's The Tower Mill Hotel in 1994. The hotel
was already 28 years old when it was purchased. The Tower Mill Hotel was rebuilt by Gorman
Property in July 1994. It was the site of rallies and demonstrations against the apartheid system
in South Africa, as well as the Springboks, who were visiting Australia for rugby matches and
stayed at The Tower Mill. Peter Beattie, one of the student demonstrators, went on to become
Queensland's Premier. “The Tower Mill” novel by James Moloney's is based on the events of
1971. In 2007, The Courier-Mail named it as a "no-frills tower of strength" The Tower Mill
Hotel was considered as one of Brisbane's most inventive structures. Metro Hotels sold its stake
in The Tower Mill Hotel to Interstay in May 2018.
In 2009, Metro Hotels considered building a $20 million, 170-room, four-star hotel on the site of
a brothel in Auckland, New Zealand. This project became unsuccessful due to the 2007–2008
financial crisis. The Palace, a tavern in Haymarket, New South Wales, that had been operating
since 1877, was bought by Metro Hotels in 2011. Yardhouse Bar and Brasserie replaced Paddy
McGuires Pub as the company's name. Yardhouse, a theme bar operator in the United States,
quickly notified Metro Hotels that it had an Australian registered trademark for the Yardhouse
name. Since 1877, Metro Hotels has called the hotel “The Palace”.
Metro Hotels joined an estimated two-thirds of hotels in Australia in 2014 to reduce services
around Easter due to Australia's high penalty rates. The decision was criticized by the leader of
Australia's hospitality union, who called it an "assault on Australian values and the Australian
way of life." Metro Hotels operated two hotels on Pitt Street, a significant thoroughfare in
Sydney, until 2017. The four-star Metro Hotel on Pitt, which the business had managed since
2003, was shuttered in September 2017 to make way for a Sydney Metro station.
Interaction with external organisation
 Argyle Hotel Group
Metro hotel is in strategic partnership with Argyle Hotel Group. Since 2007, Argyle Hotel Group
(AHG) has served as a gateway into the Asian market for Transmetro Corporation as part of a
strategic alliance. Argyle Hotel Group is a leading exporter of high-quality hotel and resort
management and asset management services from Australia to China. AHG was founded in
Australia in 2002 and began operations in China in 2005. In their respective markets, Metro
Hotels and Argyle Hotel Group represent and promote each other's hotel chains. Both contribute
to the creation of necessary brand awareness among agents, wholesalers, and the general public.
AHG focused its business efforts in China's 2nd and 3rd tier cities after identifying a significant
lack of luxury, international-standard hotels in these areas in 2005. AHG has benefited greatly
from this strategic focus, and the company has continued to grow and expand throughout China,

with 52 hotels, 12 of which are fully operational, and several more scheduled to open in the next
two years. Metro Hotels now manages 2.8 billion dollars’ worth of assets and 11,760 hotel rooms
as a result of these investments.
 Qantas Frequent Flyers
Metro Hotels is a partner of Qantas Frequent Flyer, Australia's top airline loyalty program.
Qantas Frequent Flyer members can earn points at all the Metro Hotels across Australia. The
guest simply needs to present Qantas Frequent Flyer card at check-in or check-out and will
receive Frequent Flyer points for every dollar spent on accommodation.
Metro hotels offer special promotions for all Qantas Frequent Flyer members to make their stay
more rewarding. E.g., Double or Triple Points.
Trends
Socio-Cultural Trend- Aging Population
The population of people aged 65 and up is expected to rise from 6.9% in 2000 to over 16% in
2050, according to estimates. More developed countries will have a bigger share of the elderly
population, with those aged 65 and up increasing from 14.3 percent of the population in 2000 to
26.9 percent in 2050. The needs of elderly people differ significantly from those of middle-aged
and younger people, which presents a marketing problem for the tourist and hospitality
industries.
The older people are experienced customers and marketing to older people needs a very special
promotion strategy. They tend to read simple and clear information. It is necessary to provide a
great deal of information. They have a lot of free time, so businesses must be prepared to answer
far more thorough questions than young customers. The hotel must be designed in such a way
that it is user-friendly for elders, otherwise they will be turned away. The facilities should be
aware of their senior consumers' physical limits. Some people may find it difficult to go up the
steps at the entryway, let alone carry their stuff. Traditional comfort foods (which older
customers are more familiar with), nutrient-rich foods, vegetables and fruits, and other foods that
meet the preferences and nutritional needs of older customers must also be available. In terms of
pricing, some of them may not have a steady income and are thus more careful than the average
younger consumer. For these elderly customers, the tourism and hospitality industry must
consider providing affordable or value-for-money choices.
Economic Trend- Conscious consumerism
Conscious consumerism, also known as socially conscious consumer behavior, is an economic
trend that affects the tourism industry. This term refers to consumers who use their purchasing
power to shape the world around them in accordance with their values and beliefs, causing
organizations to project a more ethical or responsible image. Conscious consumers seek positive
outcomes from their purchases and/or ways to reduce or eliminate the negative effects of
consumerism.
This trend has directed travelers to more sustainable services and products. The hotel needs to be
more aware of social and environmental issues. There has been tremendous growth in Veganism,

due to conscious consumer choices regarding health and the environmental impacts of industrial
meat production.
Environmental Trend- Demand for green hotels
With the increased global attention to environmental problems including water shortage, carbon
emission and increased waste, many travelers think that hotels and resorts should adapt an eco-
friendly operation and have very minimal impact on the environment. Therefore, travelers are
seeking hotels that consider the environment too.
This trend has led the hotel to be more eco-friendly, have minimal impact on the environment,
promoting a reduce, reuse, recycle mentality, such as the creation of markets to recycle tourism
supplies (paper, glass and plastic in particular), supporting the conservation of natural areas,
habitats and wildlife, and minimize damage to them and minimize the pollution of air, water and
land and the generation of waste by tourism enterprises and visitors.
Strategies
Economic Viability
To safeguard the viability and competitiveness of tourism locations and businesses so that
organisation can continue to grow and provide long-term benefits.
Implementation:
 Understanding the market, such as identifying areas that will continue to produce revenue
in the long run based on travel patterns and tastes through market research
 Providing visitor satisfaction, including attention to value for money and the destination's
overall competitiveness; and receiving regular feedback from visitors.
 Maintaining and projecting an attractive destination, including creating a positive and
consistent image through effective destination branding and ensuring visitors' safety and
security.
Visitor Fulfillment
To provide a safe, satisfying and fulfilling experience for visitors, available to all without
discrimination by gender, race, disability or in other ways.
Implementation:
 Improving accessibility for all, such as making tourism facilities and infrastructure
accessible and usable by people with disabilities
 Monitoring visitor satisfaction by conducting regular surveys of visitors to destinations
and encouraging businesses to solicit feedback from their customers.
 Special dietary requirement for guest of various age: children-old people
Resource Efficiency
Implementation
 Minimize the use of scarce and non-renewable resources in the development and
operation of tourism facilities and services.

 Promoting and implementing a reduce, reuse, recycle mentality, such as the creation of
markets to recycle tourism supplies (paper, glass and plastic in particular).
Environmental Purity
To minimize the pollution of air, water and land and the generation of waste by tourism
enterprises and visitors.
Implementation:
 Promoting the use of more sustainable transport, such as travelling by rail and boat which
are less polluting when compared with air travel
 Reducing the use of environmentally damaging chemicals or products, such as the
disposal of chemicals present in cleaning products or the release of CFCs into the
atmosphere from cooling systems.
References:
Chen, S.C. & Shoemaker, S. (2014) Age and cohort effects: The American senior tourism
market. Annals of Tourism Research, 48, 58-75.
Introduction to Tourism and Hospitality in BC - 2nd Edition by Morgan Westcott and Wendy
Anderson, Eds
Gardiner, S., Debra, G. & Ceridwyn, K. (2014) The generation effect: The future of domestic
tourism in Australia. Journal of Travel Research. 1-16.
Trends and Issues in the Tourism and Hospitality Industry available at:
https://www.edb.gov.hk/attachment/en/curriculum-development/kla/pshe/references-and-
resources/tourism/Final_Trend_English_a3.pdf
Co-operation and Partnerships in Tourism: A Global Perspective available at:
https://www.e-unwto.org/doi/pdf/10.18111/9789284406012
https://metrohotels.com.au/partners/