Adina Apartment Hotel Melbourne Southbank — Photo by TFE Hotels

Using a mass timber construction technology, the 10 floors of the Adina Apartment Hotel Melbourne Southbank will be built on top of an existing six-storey office building on Southbank Boulevard.

The carbon-neutral timber product (CLT) that will be used is 30 per cent lighter than steel and concrete, resulting in lower production and transport costs, and therefore reduced carbon emissions.

Designers and architects Bates Smart, who were also the brains behind TFE Hotels" award-winning Vibe Hotel Canberra Airport, said the technology presents an opportunity for "a new paradigm in sustainable construction".

TFE Hotels CEO Rachel Argaman said the hotel was part of the ongoing expansion of the Adina Apartment Hotels brand in Australia and overseas.

"From a brand that started in Sydney in 1963, we now have 20 Adinas in Australia and 10 in Europe, plus a series of stunning new luxury lifestyle hotels set to open in the next five years in Melbourne, Sydney, Brisbane and Canberra under the new Adina Grand umbrella," she said.

Construction is scheduled to start later this year with the hotel set to welcome guests early 2019.

Hotel website