February: IHG acquires Ruby Hotels in ￡92M deal to expand lifestyle portfolio.
Munich-based Ruby Hotels, founded in 2013, operates three UK locations.
IHG Acquires Ruby Hotels in ￡92M Deal to Fuel Global Expansion
InterContinental Hotels Group (IHG) has acquired Munich-based Ruby Hotels in a ￡92 million deal as it looks to significantly expand the urban lifestyle brand’s global footprint over the next decade.
The acquisition marks IHG’s 20th brand and strengthens its luxury and lifestyle portfolio, which already includes Six Senses Hotels Resorts Spas , Kimpton Hotels & Restaurants , and Hotel Indigo . By integrating Ruby Hotels’ ‘lean luxury’ concept—a blend of high-end design with efficient, cost-effective operations— 洲际酒店集团 aims to tap into growing demand for stylish yet affordable accommodations.
Expanding Ruby’s Footprint
Founded in 2013, Ruby Hotels currently operates 20 hotels with 3,483 rooms across key European cities. The brand has a strong presence in Germany, where it runs nine properties, as well as three in the UK (all in London), three in Austria, two in Switzerland, and one each in Italy, Ireland, and the Netherlands.
Looking ahead, Ruby has 10 more hotels—totalling 2,235 rooms—set to open within the next three years in cities such as Edinburgh, Marseille, Rome, and Stockholm. With IHG’s backing, the brand’s ambitions are even bigger: the hotel group plans to expand Ruby to more than 120 locations within 10 years and over 250 sites worldwide within 20 years.
A Strategic Acquisition for Growth
IHG sees immense potential in Ruby’s scalable and conversion-friendly model, which allows for flexible property development, including the adaptive reuse of office buildings—an increasingly attractive option in the evolving real estate market. The company also expects to introduce Ruby to the US by the end of the year, further broadening its geographic reach.
Elie W. Maalouf , Chief Executive Officer of IHG Hotels & Resorts, emphasised the significance of the acquisition, stating:
“We are delighted with the acquisition of Ruby, which further enriches our portfolio with an exciting, distinct and high-quality offer for both guests and owners in popular city destinations. This acquisition demonstrates our focus on building our presence in large, attractive industry segments and using our experience of integrating and growing brands and hotel portfolios. The urban micro space is a franchise-friendly model with attractive owner economics, and 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, as we have successfully done with previous brand acquisitions.”
Strengthening IHG’s Lifestyle Portfolio
For Ruby Hotels, joining IHG represents an opportunity to scale its presence while maintaining its distinct identity. Michael Patrick Struck , Founder and CEO of the Ruby Group, expressed confidence in the partnership:
“We have carefully selected IHG as the right partner to take the Ruby brand and our company’s international expansion to the next level. IHG’s powerful distribution network, Ruby’s strong fit within IHG’s brand portfolio, and its proven track record of successfully preserving brand identity and culture when integrating new brands give us great confidence as we embark on this next chapter together. By combining IHG’s global reach and resources with the efficiency advantages of our operational and construction model, we will deliver superior returns for both our investors and real estate partners. The timing couldn’t be better—demand for our unique solutions in adaptive office space re-use is rising, positioning us for strong growth.”
IHG plans to integrate Ruby Hotels into its portfolio later this year, with the merger expected to be finalised by March 31, 2026.
The deal follows a broader industry trend of major hotel groups expanding their lifestyle offerings, including Hyatt’s acquisition of Standard International and Hilton’s purchase of NoMad Hotels. By adding Ruby Hotels to its roster, IHG is positioning itself for long-term growth in the fast-evolving lifestyle hospitality market, catering to a new generation of travellers seeking stylish, experience-driven stays at accessible price points.
Conclusion
IHG’s acquisition of Ruby Hotels marks a significant step in expanding its presence in the fast-growing urban lifestyle segment. By integrating Ruby’s ‘lean luxury’ model into its global portfolio, IHG is not only strengthening its foothold in key European markets but also laying the groundwork for rapid expansion across the Americas and Asia.
With a proven track record of successfully scaling acquired brands, IHG’s backing provides Ruby with the resources and global reach needed to accelerate its growth while maintaining its distinctive identity. As demand for stylish yet efficient city hotels continues to rise, this strategic partnership positions both companies for long-term success in an evolving hospitality landscape.
As Ruby Hotels prepares to open new properties and enter new markets, and with IHG aiming to more than quadruple its footprint over the next decade, this deal signals a broader shift toward adaptive, experience-driven hospitality. With the merger set to be completed by 2026, the next few years will be pivotal in shaping Ruby’s global trajectory—and further cementing IHG’s dominance in the lifestyle