This article is from the Australian Property Journal archive
Transmetro Corporation has sold the Metro Hotel Perth for $12 million to Arika Pty Ltd.
The sale is subject to Arika obtaining development approval for the redevelopment of the site into residential apartments. Arika has 22 weeks to obtain a DA approval.
The property has been owned and operated by Transmetro for the past 18 years. It is in the company’s balance sheet at $5 million pursuant to a 2004 valuation of the property for hotel use.
The property is located in South Perth with extensive views of the Swan River. The hotel comprises 94 rooms, a restaurant, bar and conference facilities.
The company had planed to incorporate a tavern into the hotel by converting retail shops on the site, however after discussions with the South Perth City Council and local resident groups, the idea was scrapped.
“We were aware of the strength of the Perth residential property market, and while the hotel market is also buoyant, when we looked at the numbers, a residential conversion made sense,” Transmetro’s managing director John McEvoy said.
Meanwhile, McEvoy said the company hopes to buy another hotel in Perth to migrate the existing business.
The Metro Hotel will continue to operate well into next year at a minimum doe the DA process.
By Nelson Yap
