IHG Buys Ruby Hotels as 20th Brand

InterContinental Hotels Group (IHG) said Monday it would acquire the Ruby hotel brand in a deal worth up to €291.5 million ($305.7 million), marking an expansion of its European portfolio.

Why It Matters

This acquisition will add another brand to IHG Hotels & Resorts' portfolio, which already includes Crown Plaza, Kimpton, and Holiday Inn.

The deal reflects the ongoing consolidation in the global hospitality industry that CEO Elie Maalouf described in a recent Skift interview. Many independently run hotel brands face distribution pressures that increasingly push them into franchising, sales, or other partnerships with major hotel groups like IHG.

Youthful City Brand

Ruby's premium economy concept targets travelers with space-efficient rooms, self-service check-in, and 24/7 bars. It's comparable to Marriott's Moxy, Hilton's Tru, and CitizenM. Ruby Hotels specializes in converting office spaces to hotels.

IHG isn't buying Ruby's operating company — just the brand rights. The seller will continue operating current hotels under franchise agreements with IHG.

The Numbers

• The initial payment will be €110.5 million (about $115 million) for the Ruby brand and intellectual property.

• Based on performance, an extra €181 million could be paid between 2030 and 2035.

• Ruby currently runs 20 hotels with 3,483 rooms across major European cities.

• The pipeline includes 10 more hotels, adding another 2,235 rooms. Target: 120+ hotels in 10 years, 250+ in 20 years.

• Integration into IHG's system, including its loyalty program, will begin this year and be complete by March 2026.

Not Just a European Play

IHG's CEO sees this as more than just a European move. He plans to launch Ruby in the U.S. by year-end.

"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," Maalouf said during an earnings call.

Accommodations Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.

Read the full methodology behind the Skift Travel 200.