The Mercure Melbourne La Trobe Street hotel has opened in Melbourne's CBD, marking the largest purpose-built hotel development in the city this year. Developed with a $90 million investment, the 18-storey property offers 195 rooms and emphasizes sustainable design alongside stunning city views. It represents the first new-build Mercure hotel in the city center in over a decade.
The Mercure Melbourne La Trobe Street, located at 492 La Trobe Street in West Melbourne, officially opened on March 5, 2026. This 195-room hotel, developed by Spacious Group, is the largest purpose-built hotel to debut in Melbourne's Central Business District this year and the first new-build Mercure in the city center in more than a decade. The project involved a $90 million investment and features an 18-storey structure designed by Sora Interiors and reimagined by LiFE Architecture.
The hotel nods to its industrial past as a former tinsmith factory through elements like an abstract artwork in the lobby evoking tin offcuts. The lobby includes a travertine reception desk, soft lighting, and sheer drapery for a calming retreat. Guest rooms draw inspiration from nearby gardens, with floor-to-ceiling windows, natural light, and decor in soft greens, blush pinks, and neutrals. Some suites offer private outdoor terraces. Standout is Suite 1603 on the 16th floor, featuring a two-person bathtub with city views and the option to interconnect with a king-bedded room, ideal for families.
Dining at Foundry, on the sixth floor, includes an open kitchen with a three-metre marble island and an outdoor terrace for sunset views over Docklands. The hotel also has a gym and six suites. Its prime location provides easy access: six minutes' walk to Southern Cross Station, eight minutes to Marvel Stadium, and 12 minutes to Queen Victoria Market, with Flagstaff Gardens nearby.
General Manager Justin Phillips noted the hotel's separation from taller buildings allows fantastic views from every room, including Docklands, Flagstaff Gardens, and the CBD. Sustainability is central, earning a 5-Star Green Star rating with solar panels, smart LED lighting, advanced insulation, and on-site EV chargers. Adrian Williams, Chief Operating Officer of Accor in the Pacific region, described it as a bold expression of the Mercure brand for modern travelers.
Beyond the property, the hotel curates local experiences like gin masterclasses at Little Lon Distilling Co., rooftop movies at Brewmanity Beer Co., and dinners on The Q Train to Queenscliff. This opening signifies Spacious Group's entry into hospitality and supports Mercure's growth in Melbourne.