I like the concrete bloc walls. They are becoming quite fashionable today. I'd keep them in the natural concrete color or if they have been painted, a color paint that resembles concrete. The concrete walls give a hard and cold impression so I'd choose wood flooring for the floors. The combination of a warm wood on the floor and hard, cold concrete on the walls is a nice one. Brighten the space with colorful modern art.

I have just taken a couple more pictures (excuse the untidy house) from the stairs. As you can see it's an open plan area that isn't that big but very high ceilings also in wood (Macrocarpa) with dark wooden beams. The house is surrounded by bush so quite a dark house. I initially considered a darker wood similar to the beams but not sure if that will make the house appear smaller / darker...I'm really not sure what to do!?!?!? Thanks

I think, like you said, due to the fact that there's a larger space when it comes to the hotel lobbies is the reason as to why it works. I think that no matter what you put on the walls (whether it be concrete or marble) will result in tiles not working out. The industrial look tends to be exposed brickwork anyway, or cream or white colours so maybe that's an option you could look into. What did you end up doing?

Is your stone veneer to be laid on a slope? I would want to see an example of that beforehand. The stones in a sloped wall are still set horizontally, but the veneer will have joints that look skewed if laid sloped so it could look quite odd.