Marmelo is a suave, wood‑fired love letter to Portugal that feels purpose‑built for Melbourne: ambitious but relaxed, visually dramatic yet quietly comforting, and already one of the CBD’s most compelling hotel dining rooms. 

In our opinion Marmelo is the best Portuguese restaurant (in Australia)

There is something about Portugal that I find incredibly appealing, maybe it is the wine, the fabulous tiled walls, the stylish people, the trams in Lisbon; or maybe it is the food. Now that I think about it Portuguese tarts are one of my absolute favourite deserts. So it is a little strange that it has taken me so long to visit a Portuguese restaurant in my home city, but wow this is a very good restaurant.

AMBIENCE >

Marmelo sits at the base of HYDE Melbourne Place, catching the kind of natural light most CBD dining rooms would kill for, thanks to double‑height glazing and soaring red‑brick columns. Designed by Mitchell & Eades, the room leans into tactile materials – clay, timber, stone and hand‑painted azulejo‑style tiles – to evoke Portugal without resorting to clichés, while Melbourne’s familiar industrial lines keep it firmly grounded in the city.

Custom Jardan furniture softens the edges: low, comfortable banquettes, generous timber tables and sculptural lighting that gently pools over each setting, flattering both plates and people. The open kitchen and custom charcoal grill provide the show, sparks occasionally flaring behind the pass as the room fills with the scented haze of wood smoke; it’s theatrical, but calibrated so the dining room still feels calm rather than chaotic.

A long bar runs the length of one side, linking Marmelo to its livelier basement sibling, Mr Mills, and anchoring the space for solo diners and pre‑ or post‑dinner drinks. Service – led by a team clearly drilled in the Lusteds’ style of warm, intuitive hospitality – walks a line between polished hotel professionalism and the relaxed charm of a neighbourhood favourite, and on a busy Saturday night the room hums in a way that feels naturally Melburnian rather than imported.

EAT >

The menu is Portuguese at heart but draws confidently from the wider Iberian coastline and Ross Lusted’s own story, folding in memories of the Portuguese food he grew up with in South Africa and the global trade routes that shaped the cuisine. Wood and charcoal are the through‑line: almost every plate seems to pass through the custom grill or wood oven, bringing a low, savoury smokiness that binds the meal together without overwhelming it.

Snacks might run to a blistered, wood‑fired flatbread perfumed with garlic and good olive oil, or croquettes that snap delicately to reveal creamy, deeply seasoned interiors – the sort of one‑bite, one‑more‑please cooking that makes a strong case for starting with most of the top half of the menu. From there, you might find clams or pipis steamed in white wine with coriander and a flicker of chilli, begging to be chased with hunks of char‑marked bread, or a take on piri‑piri cockerel chicken that swaps blunt heat for layers of spice, smoke and citrus.

Larger plates lean into the grill’s full power: think a thick, bone‑in fish collar bronzed over coals and glossed with garlic, lemon and olive oil, or a sharing cut of beef that arrives with just enough char to frame its mineral richness. Sides carry their own weight – maybe charred brassicas in a nutty, garlicky emulsion or potatoes roasted until the edges frill and crisp – and the kitchen shows restraint with garnishes, letting primary flavours stay clearly articulate.

Dessert keeps Portugal present without heavy‑handed nostalgia. You might close with something in the custard canon – a silky, wood‑oven baked number with caramelised edges, say – or a quince‑forward plate that nods to the restaurant’s name (“marmelo” being Portuguese for quince) without feeling like a branding exercise. Portioning and pacing are well judged for sharing, and across a long lunch the kitchen keeps a steady rhythm that feels designed to slide gently into late afternoon rather than push you towards the door.

DRINK >

The wine list is compact but considered, reflecting both the Iberian brief and Melbourne’s enthusiasm for small, characterful producers. Expect a spine of Portuguese and Spanish labels – Arinto, Alvarinho, Baga, Tempranillo and the like – supported by savvy picks from Australia and beyond that favour texture, food‑friendliness and modest alcohol over sheer power.

By‑the‑glass options are generous enough to let you match across the menu: a bright, salty white with seafood and petiscos, perhaps, then something with a touch more tannin and spice structure for the grill dishes. Pricing sits in line with the restaurant’s ambitions – not cheap, but fair for the level of curation – and staff are quick with sharp, unpretentious pairing suggestions if you’d rather hand over the decisions.

The cocktail program tips its hat to Mr Mills downstairs, but Marmelo’s list keeps things measured: aperitif‑leaning spritzes and vermouth‑forward numbers up front, citrus‑bright and spice‑inflected builds for the main event, then perhaps something amaro‑led to round out dessert. There’s enough invention to satisfy the bar‑fly, but the drinks never fight the food; this is a restaurant first, with a bar that understands its supporting role.

CONCLUSION >

Marmelo isn’t trying to replicate Lisbon or Porto on Russell Street; instead, it filters Portuguese traditions through Melbourne’s own lens of design, produce and wine, and lands somewhere far more interesting. The room is beautiful without being brittle, the cooking confident but not showy, and the service quietly assured – a combination that makes it as suited to a long, indulgent Saturday lunch as to a sharp mid‑week dinner at the bar. It feels like it has already settled in to become one of Melbourne’s long running dining institutions.

This is one of the city’s most complete arguments that hotel dining can be both destination and local favourite. If you like your restaurants with a clear point of view, a bit of smoke in the air and a story woven through the bricks, Marmelo should sit near the top of your next‑in‑line list.

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Image Credit | ALMANAK & Marmelo Restaurant

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