IHG Hotels & Resorts Acquires Ruby as Its 20th Global Hotel Brand

On 18/02/2025, IHG Hotels & Resorts acquired the Ruby brand and its related intellectual property, adding the premium urban lifestyle concept as the 20th brand in IHG’s global portfolio. IHG paid initial consideration of €110.5 million, approximately US$116 million at the exchange rate used for the transaction, to acquire the brand from Ruby SARL. The deal expanded IHG’s premium offering with a hotel concept designed primarily for sought-after urban destinations. Ruby was established in 2013 and developed around its “Lean Luxury” philosophy, combining compact and space-efficient hotel design with stylish interiors, relaxed hospitality and stories connected to each hotel’s city. Guest rooms focus on essentials including high-quality beds and showers, while Ruby properties typically feature destination bars operating 24 hours a day. For hotel owners, the model uses standardized operations, automation and space-saving design, including self-service check-in kiosks. IHG identified Ruby as particularly suitable for the “urban micro” segment, where space constraints and development costs can make conventional hotel formats more difficult to operate. At the time of the acquisition, Ruby operated 20 hotels containing 3,483 rooms across Europe, with another 10 hotels and 2,235 rooms in the development pipeline. Its operating portfolio included nine hotels in Germany, three in London, three in Vienna, two in Switzerland, and one each in Italy, Ireland and the Netherlands. Pipeline properties were scheduled across cities including Edinburgh, Marseille, Rome and Stockholm. IHG noted that Ruby had recorded a 26% compound annual growth rate in net system size during the previous five years. The acquisition did not include Ruby’s hotel operating company. The Ruby Group, led by founder and CEO Michael Struck, continued to operate its existing properties and future hotels developed by the company under franchise agreements with IHG. The arrangement allowed Ruby hotels to connect with IHG’s distribution and technology systems and IHG One Rewards while retaining the operating model and identity developed by Ruby. Integration of the 20 hotels already operating at the time of the transaction was expected to begin later in 2025 and be completed by 31/03/2026. IHG set a target for Ruby to expand to more than 120 hotels over the following 10 years and more than 250 hotels over 20 years through a combination of development by The Ruby Group and other hotel owners. Less than six weeks after the acquisition, IHG announced its first new Ruby signings under its ownership, a 375-room hotel planned for Berlin and a 219-room property in Copenhagen. Later in 2025, IHG also introduced Ruby as a development opportunity in the United States, extending the brand beyond its established European base. Why This Moment Matters The Ruby acquisition gave IHG an established premium urban lifestyle brand with an operating European network and a development model suited to new builds, conversions and adaptive reuse of commercial properties. It also broadened IHG’s portfolio to 20 brands while providing a platform for Ruby’s expansion into additional markets through IHG’s global franchise and distribution infrastructure.