A novel timber composite is presented, consisting of glued laminated timber (GLT) from softwoods and intercalated cross-layered plates of laminated veneer lumber (LVL) made of hardwood species, specifically beech. The structure is especially suited for beams with multiple, large rectangular holes, where the LVL acts as a highly efficient internal reinforcement and contributes to a damage-tolerant ultimate load behavior. The load capacity of the composite beam is not induced by the stress concentrations at the corners of the hole, which, in contrast to generic GLT, lead to a sudden propagation of cracks and brittle failure. It is shown that the structure, including the holes, can be designed analytically in a transparent manner by using beam theory, a parallel system approach, and modifications from FEM analysis for the verification of tensile forces at the hole periphery. The composite, firstly used in a recent multi-story building in Australia, significantly improves the competitiveness of timber in building works, which have been limited to steel and reinforced concrete structures.