Pub operator hit by "subdued" market
The pubs division of Metro Hospitality Group has reported a loss of $484,529 for the 12 months to June 30, 2012, with its ASX-listed parent expressing surprise at the sector's tough trading conditions.
Metro Hospitality Group, the trading division of ASX-listed Transmetro Corporation, has four theme pubs in Sydney, Adelaide, and Perth.
The pubs division posted the loss on the back of $8.7 million in sales.
EBITDA for the consolidated group, which comprises the pubs along with Metro's more substantial accommodation division, was $6.7 million on total revenue of $36.9 million.
"The company's pubs have been relatively subdued in the past year, which has been a little surprising given past history when the pubs have tended to improve during times of uncertainty and when the economy has slowed," Metro said.
During the year the company's largest pub, Paddy McGuires in George Street, Sydney, was extensively remodelled in a $1 million-plus refurbishment.
The pub was initially relaunched as the Yardhouse Brasserie but has since been re-branded 'Palace Hotel since 1887', after the company decided to adopt the venue's original name to reflect its 135-year history.
The Paddy Maguires banner continues to be used at Subiaco in Perth, while in Adelaide the group operates The Elephant. The company also has an interest in The Elephant & Wheelbarrow in Northbridge, Perth.
"The flexibility and diversity of the Metro Hospitality Group, incorporating Metro Hotels and the theme pubs, gives Transmetro Corporation a high degree of confidence in its capacity to confront the present and future challenges of a dynamic marketplace," the company said.
In recent weeks, Metro hailed as a success its new Sydney live music venue, The Square, located on Hay Street in the basement of the Palace Hotel.
"This live music and performance venue, with a capacity for around 200 people, has already attracted a strong lineup of the best Indie Rock and Punk bands from Australia and overseas," it said.
Source: The Shout, 12 November 2012
