IHG Hotels & Resorts will be Melbourne Walk’s first occupant, with its first dual-branded hotel in Australia – the Holiday Inn and Hotel Indigo brands – offering a total of 452 rooms across levels 2 to 10 of the redeveloped site.

Holiday Inn Melbourne Bourke Street Mall will be a new and modern 273-room hotel designed to cater to both business and leisure travellers while Hotel Indigo Little Collins will offer 179-rooms in a boutique style experience, alongside a restaurant and bar.

Developed by Singaporean owner Hua Sin Tay’s Steadfast Capital and built by Hickory Group, the mixed-use development will be the first project delivered in Bourke Street Mall in more than 50 years and is the centrepiece of the Bourke Street Mall revitalisation.

Render of Holiday Inn Melbourne Bourke Street Mall.

“IHG Hotels & Resorts is proud to be partnering with Steadfast Capital on the Melbourne Walk redevelopment and greatly appreciates the significant investment Steadfast has made in the revitalisation of Melbourne and the accommodation sector more broadly,” Matt Tripolone, Managing Director – Australasia & Pacific, IHG Hotels & Resorts said.

“I’m looking forward to the doors opening in 2025 and providing guests of all types with the experience that appeals to them – whether its Hotel Indigo Little Collins’ neighbourhood story or Holiday Inn Melbourne Bourke Street Mall’s iconic brand.”

Once known as Walk Arcade, Melbourne Walk was officially topped out recently in a ceremony attended by the City of Melbourne Lord Mayor Nicholas Reece.

He credited the role of redevelopment projects in driving economic uplift and visitation to Melbourne’s CBD through the provision of greater retail, hotel and hospitality options for workers and visitors.

Once complete, Melbourne Walk’s total area over three retail floors, the two hotels and rooftop restaurant will span more than 37,000 sqm. The development will offer over 6,000 sqm gross lettable area for retail (GLAR) and comprise approximately 45 tenancies, including a rooftop restaurant, lounge, bar, flagship retail along Bourke Street Mall, and boutique concept stores facing Little Collins Street.

Render of Hotel Indigo Little Collins.

Recent research by Colliers reveals that Melbourne’s rapid population growth is significantly outstripping the expansion of retail space, with new retail floor space deliveries through 2026 projected to be 53 per cent below the average from 2014 to 2019 across the metropolitan region.

With a projected population growth of 17 per cent across Melbourne over the next decade, the undersupply is projected to result in a shortfall of 850,000 sqm of retail space. The gap has a forecast opportunity cost of approximately $6.4 billion in potential sales to existing retail assets. The supply and demand imbalance is predicted to place upward pressure on Melbourne and CBD retail rents.

“As the need for new retail space increases, new retail assets, such as Melbourne Walk, are well-positioned to lessen the anticipated shortfall in retail space,” Steadfast Capital executive director, Teck-Lay Tay, said.

“The provision of new, quality floorspace at Melbourne Walk will meet the growing need for new retail environments and offer retailers a prime opportunity to contribute to Melbourne CBD’s economic growth.”

George Abraham, Managing Director, Hickory, said, “Melbourne Walk is a landmark project which stands as a testament to our vision of creating better places for future communities. At Hickory, we are proud to have contributed to a development that blends heritage with modern design and will enrich the lives of generations to come.”

According to data from the City of Melbourne, permit approvals for alterations to shops and restaurants are on the rise, up 89 per cent in 2024, signalling a vibrant resurgence in the CBD retail sector. This surge in activity reflects growing confidence among retail traders, underscored by a significant reduction in shopfront vacancies within the CBD, which have nearly halved since mid-2024.

Global design studio Buchan is delivering the architecture and interior design for the entire project. Running from Bourke Street to Little Collins, the site will be characterised by the juxtaposition of old and new. Project Architect at Buchan, Hayden Djakic, said the redevelopment will pay homage to the site’s rich heritage by preserving the historic facades of iconic buildings, Diamond House, Public Benefit Bootery, Allan’s and the York Building.

“Each heritage facade will be seamlessly integrated with a new addition to create a vibrant and engaging streetscape that respects the past while embracing the future. Internally, a network of pedestrian arcades will link through the site, taking cues from the ‘grit and glamour’ character of Melbourne’s celebrated arcades and laneways,” Djakic said.

“We have worked closely with the developer and city to reinvent this long underutilised central city site as a viable and sustainable destination.”

Feature image: (from left) Matt Tripolone, managing director – Australasia & Pacific, IHG Hotels & Resorts, Hayden Djakic, associate, Buchan, Teck-Lay Tay, executive director, Steadfast Capital, City of Melbourne Lord Mayor Nicholas Reece and George Abraham, managing director, Hickory.

An early render of the Melbourne Walk Little Collins Street site.