InterContinental Hotels Group (IHG) has added a new brand to its growing portfolio with the acquisition of Ruby Hotels, a premium urban lifestyle hotel brand. The deal, valued at €110.5 million (~$116 million), includes the Ruby™ brand and related intellectual property from seller Ruby SARL. This move positions IHG to further expand in the fast-growing “urban micro” hotel segment, targeting modern travelers seeking high-quality, space-efficient accommodations in major cities.
Established in 2013, Ruby operates 20 hotels across Europe, with 3,483 rooms in key destinations such as London, Vienna, Geneva, and Munich. The brand has another 10 hotels in the pipeline, set to open in cities like Edinburgh, Marseille, Rome, and Stockholm over the next three years. Ruby hotels are known for their “Lean Luxury” approach, which combines stylish design, efficient use of space, and modern automation. Self-service kiosks, compact room layouts, and high-quality amenities help keep costs down while maintaining a premium experience.
For IHG, Ruby marks the 20th brand in its diverse hotel portfolio. The acquisition is a strategic move to attract lifestyle-focused travelers and provide hotel owners with an efficient, adaptable model in urban markets where space is at a premium. The brand has already demonstrated impressive growth, achieving a 26% net system size CAGR over the past five years.
The partnership also brings advantages for Ruby, as the brand gains access to IHG’s global distribution network and loyalty program, IHG One Rewards. This could accelerate Ruby’s expansion beyond Europe, with plans to enter the U.S. market by the end of the year. Long-term, IHG aims to grow the Ruby brand to over 120 hotels in the next 10 years and more than 250 locations within 20 years.
Elie Maalouf, CEO of IHG Hotels & Resorts, highlighted the potential of the acquisition, stating, “We see excellent opportunities to not only expand Ruby’s strong European base but also rapidly take this exciting brand to the Americas and across Asia.”
Michael Struck, Founder and CEO of The Ruby Group, expressed confidence in IHG’s ability to scale the brand globally. “The timing could not be better,” he said, noting the high demand for adaptive re-use of office spaces, which Ruby specializes in converting into hotels.
With a strong market presence and a clear expansion strategy, IHG’s acquisition of Ruby signals a bold step into the future of urban hospitality. By blending efficiency, design, and modern traveler expectations, the group is poised to capitalize on shifting trends in the hotel industry.
