Individual Report on Metro Hotels

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,