A RISING STAR IN LIFESTYLE HOSPITALITY
IHG Acquires Ruby Hotels – A Rising Star in Lifestyle Hospitality. IHG has just announced its acquisition of Ruby Hotels, one of the fastest-growing names in the lifestyle hotel space.
Who is Ruby Hotels and what makes them stand out?
Founded in 2013 by CEO Michael Struck, Ruby Hotels has quickly scaled its “Lean Luxury” concept across Europe. The German-based group has been expanding steadily, with properties across Germany (Munich, Stuttgart, Hamburg, Düsseldorf), and in Zurich, London, Vienna, Amsterdam, and Dublin. Over the past five years, Ruby has posted an impressive 26% compound annual growth rate (CAGR) in net system size (1) .
Ruby’s model thrives on flexibility. Many of its properties are adaptive re-use projects—breathing new life into buildings with a history—while others are ground-up developments. The concept focuses on delivering what matters: compact, ergonomically designed rooms that still feel luxurious, thanks to thoughtful design and high-quality finishes. Most hotels feature a standout F&B venue—whether it’s a rooftop bar or a lively café-style lobby with co-working spaces—creating hubs where guests and locals can connect.
Ruby knows its strengths and plays to them. Rather than managing traditional all-day dining outlets, the group is more likely to partner with local operators / outside venues to offer dining experiences that are fresh, authentic, and anything but cookie-cutter.
Why Ruby could be a game-changer for Australia
We’ve visited a few of Ruby’s hotels across Europe and their approach feels tailor-made for the Australian market, where hotel owners and developers are chasing brands that command premium rates without the need for large footprints or excessive build costs. With Australia facing some of the highest operating and construction expenses globally, Ruby’s model—delivering high returns through efficient use of space—makes perfect sense.
The appeal of operating leases
Operating leases, a common structure in Europe, align perfectly with Ruby’s growth strategy. While not every investor is suited to this model, those seeking stable returns without hands-on management find it attractive. Ruby’s proven track record, even throughout the global pandemic, shows that building owners across Europe have embraced the brand’s lease deals. The question for us will be, have we seen the end of lease deals for Ruby going forward?
What’s next for Ruby under IHG?
IHG’s €110.5 million (~$116m) acquisition of the Ruby brand and its intellectual property marks a significant milestone. The goal? Scale Ruby to over 120 hotels within the next decade and surpass 250 globally over the next 20 years.
Best of Both Worlds: Independent Operator Meets Global Franchisor
IHG’s acquisition of the Ruby brand—without taking over the operating company—raises an interesting point: is this a nod to IHG’s strength as a franchisor rather than a direct manager of Ruby’s concept? With Ruby continuing to operate its 20 open hotels and 10-property pipeline, the deal seems to offer the best of all worlds.
Ruby retains its independence and agility, while benefiting from IHG’s global distribution muscle. The result? A powerful combination of an innovative brand, a nimble management team, and a global partner that amplifies reach without diluting Ruby’s core identity.
Could Australia be next?
With Ruby’s unique blend of efficiency, style, and adaptability—and IHG’s global backing—there’s every reason to believe we’ll see this brand down under soon. It’s just a matter of finding the right project and the right deal.
