InterContinental Hotels Group (IHG) has announced its acquisition of Ruby, a premium urban lifestyle hotel brand, from Ruby SARL. The deal, valued at €110.5 million (~$116 million), includes the Ruby brand and related intellectual property, marking a significant milestone as IHG’s 20th brand. The acquisition underscores IHG’s commitment to expanding its portfolio in must-visit city destinations and solidifying its presence in the rapidly growing urban micro-hotel segment.
Established in 2013, Ruby has become synonymous with modern luxury and space-efficient designs, catering to lifestyle-focused travelers. The brand currently operates 20 hotels with 3,483 rooms across major European cities, including Cologne, Frankfurt, Hamburg, London, Munich, Vienna, and Zurich. Its pipeline includes an additional 10 hotels, set to open in cities such as Edinburgh, Marseille, Rome, and Stockholm over the next three years. Ruby’s unique “Lean Luxury” approach emphasizes stylish, soulful design paired with efficient operations, offering guests premium experiences at competitive prices.
IHG plans to leverage Ruby’s established presence in Europe and its proven adaptability for both new builds and conversions, including office-to-hotel transformations. Over the past five years, Ruby has achieved a compound annual growth rate (CAGR) of 26% in net system size, reflecting its popularity among travelers and investors alike. IHG anticipates further global expansion, with the Ruby brand set to debut in the United States by the end of the year. Long-term growth targets include expanding Ruby to over 120 hotels in the next decade and more than 250 hotels over the next 20 years.
Ruby’s acquisition also brings a franchise-friendly model with significant cost efficiencies for hotel owners, achieved through standardized operations and innovative technologies such as self-service kiosks for check-ins. IHG expects the integration of Ruby into its global distribution and loyalty platform, IHG One Rewards, to drive superior returns for stakeholders and enhance guest experiences worldwide.
Elie Maalouf, Chief Executive Officer of IHG Hotels & Resorts, expressed enthusiasm for the acquisition, stating, “Ruby enriches our portfolio with an exciting, distinct, and high-quality offering for both guests and owners in popular city destinations. This acquisition demonstrates our focus on large, attractive industry segments and our ability to grow and integrate brands globally.”
Ruby’s founder and CEO, Michael Struck, echoed the sentiment, highlighting IHG’s proven track record of preserving brand identity and culture while scaling internationally. “Combining the global reach and resources of IHG with the efficiency advantages of our operational and construction model will drive superior returns for our investors and real estate partners,” he said.
The financial structure of the deal includes an initial payment of €109.9 million, with additional payments contingent on the future growth of Ruby-branded rooms. Potential further payments, ranging from €9 million to €181 million, are tied to the seller’s expansion targets by 2030 and 2035. The seller will retain operational control of the current 20 hotels and future developments, entering franchise agreements with IHG for all Ruby-branded properties.
IHG expects the integration of Ruby’s existing portfolio to begin in 2025 and be completed by March 2026, adding approximately 0.3% to IHG’s global system size. The pipeline hotels, when open, will contribute an additional 0.2%. While integration costs of $10 million are anticipated for 2025, the acquisition is expected to deliver a breakeven contribution to IHG’s operating profit by 2026, with profitability growth forecasted thereafter.
