​IHG Acquires its 20th Brand: Premium European Brand Ruby

InterContinental Hotels Group (IHG) has expanded its portfolio by acquiring the European hotel brand Ruby, marking its 20th brand addition. Established in 2013, Ruby operates 20 hotels across Europe, including locations in Germany, the UK, Austria, Switzerland, Italy, Ireland, and the Netherlands, totaling 3,483 rooms. 

Existing locations of the Ruby Hotels brand:

• Germany – 9 hotels (in Cologne, Dusseldorf, Frankfurt, Hamburg, Munich and Stuttgart)
• Great Britain – 3 in London
• Austria (Vienna) -3
• Switzerland – 2 (Geneva and Zurich) 
• Italy, Ireland and the Netherlands – one each

The brand has an additional 10 hotels in the pipeline, set to open in cities like Edinburgh, Marseille, Rome, and Stockholm over the next three years. 

Who the brand is designed for and what to expect from it

Ruby Hotels is designed for the modern, style‐ and cost‐conscious traveler—those who value a refined experience without unnecessary frills. The brand’s “Lean Luxury” philosophy means that rather than paying for extraneous amenities, guests receive a high-quality, efficient service that emphasizes what truly matters: a great night’s sleep, smart design, and a vibrant, local atmosphere.  The hotels feature self-service check-in and 24-hour bars, which aim to provide guests with a relaxed yet stylish stay.  

Key Characteristics of the Target Audience:

• Modern Urban Explorers:
  Ruby Hotels cater to individuals who travel to city centers for both leisure and work. These guests appreciate being centrally located—close to cultural hotspots, trendy dining, and creative neighborhoods—as seen in reviews of Ruby Stella and Ruby Zoe in London. 
• Cost-Conscious, Style-Savvy Travelers:
  Rather than traditional luxury with ornate details, Ruby Hotels offer “lean luxury” that strips away superfluous extras to focus on essentials—like comfortable beds, efficient check-in processes, and well-designed communal spaces. This appeals especially to younger professionals and digital nomads who want high style without the high cost. 
• Tech-Friendly and Efficiency-Oriented:
  The brand incorporates digital innovations (such as self-service check-ins and integrated digital guest communication) that resonate with tech-savvy guests. These features streamline the guest experience and align with the expectations of modern travelers who value speed, personalization, and seamless service.
• Creative and Experiential Seekers:
  Ruby Hotels’ unique decor, local influences, and community-centric spaces (including coworking areas) attract creative professionals and those looking for an immersive experience that reflects the city’s spirit. The emphasis on individuality and local roots provides a backdrop that inspires and enriches guests during their stay. 

In summary, Ruby Hotels targets a diverse yet distinctly modern clientele—from young urban explorers and digital nomads to creative professionals and budget-minded business travelers—all looking for an authentic, efficient, and stylish urban lodging experience that delivers luxury in its purest, most functional form.

Integrating Ruby into the IHG brand

IHG’s acquisition involves an initial payment of €110.5 million for the Ruby brand and its intellectual property, with potential additional payments based on performance metrics between 2030 and 2035. IHG plans to integrate Ruby into its global distribution network and loyalty program, aiming to expand the brand to over 120 hotels in the next decade and surpass 250 hotels within 20 years. The expansion strategy includes introducing Ruby to markets in the Americas and Asia. 

Elie Maalouf, CEO of IHG, expressed enthusiasm about the acquisition, stating that Ruby enriches IHG’s portfolio with a distinct and high-quality offering in popular city destinations

The integration of Ruby hotels into the IHG system will begin later in 2025 and will be completed by March 31, 2026.

This will increase the size of the global IHG system by approximately 0.3%. And the opening of 10 more hotels will add another 0.2% to the IHG system.

Conclusions

Overall, the acquisition is seen as a significant step for IHG in diversifying its offerings and strengthening its presence in the lifestyle hotel market. The success of this integration will likely depend on how well IHG preserves Ruby’s unique brand elements while leveraging its global platforms for expansion.

There’s widespread agreement that IHG’s global distribution network and loyalty program (IHG One Rewards) will significantly accelerate Ruby’s growth.

Some people will enjoy the concept of “lean luxury” because they value efficient self-service check-in at the front desk and well-designed, space-saving rooms. Others may prefer more traditional hotels with full-service front desks, spacious lobbies, lounge areas, and classic luxury amenities such as concierge services, in-room dining, and sophisticated decor.