IHG Hotels & Resorts acquires its 20th brand, Ruby

InterContinental Hotels Group PLC (IHG) has made a major move to expand its presence in the premium urban lifestyle hotel market with the acquisition of the Ruby™ brand for €110.5 million.

IHG has acquired the Ruby brand and its related intellectual property from Ruby SARL, adding 20 operational hotels across Europe, including one in Ireland, with 10 more in development. The acquisition strengthens IHG’s position in the fast-growing “urban micro” segment, which focuses on space-efficient designs and highly standardised operations.

Elie Maalouf, CEO of IHG Hotels & Resorts, highlighted the significance of the deal, 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.” He added, “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.”

Ruby hotels operate under a ‘Lean Luxury’ philosophy, blending premium design elements such as high-quality beds, well-designed bathrooms, and vibrant 24/7 bars with an emphasis on efficiency and affordability. The brand has experienced strong growth, with a net system size compound annual growth rate (CAGR) of 26% over the past five years. IHG aims to build on this momentum, targeting growth to over 120 hotels in the next decade and exceeding 250 within 20 years.

Michael Struck, Founder and CEO of The Ruby Group, expressed confidence in IHG’s ability to scale the brand while preserving its unique identity. “We have carefully selected IHG as the right partner to take the Ruby brand and our international expansion to the next level,” he said. “IHG’s distribution powerhouse, the fact that Ruby perfectly complements IHG’s portfolio, and its proven track record of successfully preserving identity and culture when integrating brands gives us great confidence as we embark on this next chapter together.” He also highlighted the brand’s innovative approach to repurposing commercial spaces, noting, “Our unique solutions for efficient adaptive re-use of office space are in high demand, positioning us for strong growth.”

IHG plans to introduce Ruby to the U.S. market by the end of the year while expanding further across Europe in cities such as Edinburgh, Rome, Marseille, and Stockholm. By leveraging IHG’s extensive distribution network and loyalty programme, IHG One Rewards, Ruby hotels will gain access to a broader customer base and increased global visibility.