Although altered many times, its superabundance of contributions to Melbourne's theatrical heritage made it worthy of preservation, arguments which unfortunately did not prevent its destruction.

In 1916 the Sydney architect Henry Eli White designed alterations, which involved a complete refitting of the auditorium and lobby with the addition of ornate plaster decoration in a Louis Seize style, and it was renamed the Palace Theatre.

Between 1919 and c. 1922 a front room on the upper level was let for use as a studio to the prominent artists Arthur Streeton and Max Meldrum.

In 1923 the auditorium was extensively remodelled, though retaining the Louis Seize style, overlaid with Adamesque decoration, and it was re-opened as The New Palace.

The facade was substantially remodelled in an Art Deco style designed by H Vivian Taylor, the only part which still remains today.

[2] The Metro was described in 2006 as having a "classy, intimate VIP lounge in Gods Bar along with the funky Fish Bowl on the mezzanine level providing electrifying views of the Main Room below, all available for your partying pleasure.

The new owners, who operated the former Palace, St Kilda, lost an acrimonious 2-year battle with the State Government over the lease of the old building and moved their business to the Metro.

[6] Over the next 7 years it became a very well established venue, hosting acts such as George Clinton, The Black Keys, Queens of the Stone Age, Arctic Monkeys and The Killers, to name a few.

Activists claimed that owners Jinshan Investments were deliberately destroying the interior features to prevent any heritage listing.

The City of Melbourne nevertheless refused to issue a permit for the hotel, a decision that the owners appealed to the Victorian Civil and Administrative Tribunal (VCAT) in early 2016.

[14] Wing has since written that his idea was inspired by his observation of the jumbled and spirited crowds exiting the Palace Theatre, visible from his home above a Bourke Street restaurant.