Designed by global studio Buchan, the project brings together Hotel Indigo and Holiday Inn within a single building, delivering two distinct guest experiences shaped by Melbourne’s urban character and layered history.

Although the dual-brand hotel model is still relatively new to Australia, it offers clear operational advantages through shared back-of-house facilities. The development includes 452 rooms across nine levels above a three-level retail podium.

The project was led by Buchan Senior Associate Hayden Djakic, who worked closely with Steadfast Capital and IHG to ensure each hotel expressed a clearly defined brand identity.

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"Hotel Indigo is a boutique brand aimed at travellers who want a bespoke, hyper-local experience," says Djakic. "Holiday Inn is a more budget-conscious option that welcomes families into a fun and familiar environment."

Each hotel is accessed via its own dedicated lobby from the ground-floor arcade. Beyond these entrances, the interiors diverge, with identities shaped by the site’s historical narrative.

The Hotel Indigo design centres on curiosity, exploration and a strong connection to place. Its palette blends flashes of Mondrian blue, referencing Melbourne’s street signage, with ceppo stone, terrazzo and brass accents, reflecting the city’s mix of elegance and energy.

The interiors draw inspiration from the site’s eclectic past, referencing historic retailers such as Sidney Myer’s original haberdashery, E W Cole’s book arcade and emporium of everything with its exotic animal displays, as well as the Eastern influences of James Hosie’s Turkish baths. These stories are interpreted through layered details including custom fabrics, rugs, glassware, terrazzo finishes and playful monkey lamps.

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A central spiral staircase anchors the hotel’s expansive lobby and bar, rising through a four-level void animated by a whimsical artwork by Lisa King. The bar overlooks a landscaped courtyard that provides guests with a quiet retreat from the surrounding city.

In the guest rooms, a sense of discovery continues. Bathrooms feature dual entry points, with sliding doors that reveal concealed artworks. "We want guests to explore their rooms the same way they explore the city - rounding corners and making discoveries," Djakic says.

Custom joinery references Louis Vuitton trunks, while wallpaper behind the beds maps Melbourne’s street grid, punctuated by a crystal light marking the Diamond House site, a nod to the building’s former gem merchants. Herringbone flooring recalls the mahogany boards of the original upper-level warehouses.

Smaller details reward closer inspection. Room numbers incorporate the Saint Augustine quote, ‘The world is a book, and those who do not travel read only a page’, drawn from the legacy of E W Cole’s book arcade. Flecks of gold in the corridor wallpaper subtly reference the gold rush that shaped Melbourne’s growth.

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By contrast, Holiday Inn focuses on the joy of travel for everyone. Warm, natural materials, tactile textures and lush greenery create a relaxed, welcoming atmosphere, particularly suited to families.

Guests are greeted by the brand’s signature ‘Hello’ wall opposite reception, setting an approachable tone that carries through the open-plan ground floor.

The space includes a generous lounge, full-service bar and all-day dining, anchored by an open kitchen designed to flex in response to peak periods and guest needs. Guest rooms prioritise comfort and functionality, catering equally to families and business travellers.

Behind the scenes, shared back-of-house facilities are essential to the success of the dual-brand model. Arranged in a figure-eight configuration, service areas allow staff to move easily between the two hotels for housekeeping and room service, while laundry and catering facilities support all 452 rooms.

Djakic notes the importance of this efficiency. "During and after big events there can be up to 900 people staying in the hotel. Designing the back-of-house to minimise the distances staff need to travel optimises time and efficiency."

Across both hotels, the design prioritises sensory engagement, from materiality and colour to lighting, acoustics, scent and food presentation.

"People find joy in exploring a space for the first time. While the narrative anchors the design concept, it's the refinement of the details that deepens the story and enriches the guest experience," Djakic says.

"We have carefully curated every aspect of the Hotel Indigo and Holiday Inn to foster a connection with the city designed to stay in people's memories and inspire a return visit."

Images: Buchan’s Hotel Indigo and Holiday Inn / Peter Bennetts

Clémence Carayol

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