A downhole tool includes a circumferential band having a plurality of axially adjacent weld beads forming a wear resistant surface along a particular axial length of the tool and at least one circumferential multi-layer coating applied axially adjacent the band on either end. The multi-layer coating includes a first layer, exhibiting a first color, applied directly onto the tool surface, and a second wear-resistant layer, exhibiting a second color different from the first color, applied directly onto the first layer. The second layer wears or is removed by a certain amount, such that the first color of the first layer is revealed to indicate the extent of wear and/or that the tool should be removed from service and refurbished by applying a new wear-resistant coating.