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IHG buys the Ruby hotel chain, including three sites in London

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IHG has added another new hotel brand – but this time it is an established one. To be fair, with just 20 brands, IHG is being positively restrained compared with Accor (40+) or Marriott’s 36.

The company has paid €111 million for the Ruby hotel brand, which is ‘a premium urban lifestyle brand for modern travellers in must-visit city destinations’.

It looks like something that will sit below IHG’s Hotel Indigo brand, which has been moving increasingly upmarket in my view, whilst still fitting into the ‘lifestyle’ niche. It feels very close to the citizenM model.

IHG acquires Ruby hotels

Ruby has 20 hotels with a total of 3,500 rooms.

There are three sites in the UK:

  • Ruby Lucy (Lower Marsh by Waterloo)
  • Ruby Stella (Eyre Street Hill, Farringdon / Holborn)
  • Ruby Zoe (Notting Hill Gate, image below)

…. with the remainder in Germany (nine), Austria, Switzerland, Italy, Ireland and the Netherlands. The confirmed pipeline includes a site in Edinburgh.

According to IHG:

“Ruby hotels offer a stylish yet relaxed charm, blending soulful design and authentic stories rooted in the cities they call home. The brand’s ‘Lean Luxury’ approach includes signature touches ranging from a great bed and shower in guest rooms created with restoration and relaxation in mind, to unique cocktails in destination 24/7 bars, all coming together to connect guests with sought-after cities at the right price.

As our 20th brand, Ruby will extend IHG’s appeal to modern, lifestyle-focused travellers, and offers hotel owners a cost-efficient and highly adaptable premium hotel concept, in an industry segment characterised by high barriers to entry and space constraints, often referred to in the industry as ‘urban micro’. Efficiencies for owners are delivered through space-saving designs and a high degree of operational standardisation and automation, including self-service kiosks for speedy check-in.”

Ruby has a niche in converting office blocks to hotels. This is becoming increasingly popular due to ‘work from home’ and the failure of many older buildings to meet minimum environmental standards for letting.

Ruby Zoe London hotel

The deal has some interesting quirks

For those interested in M&A, there are some interesting features to this deal.

IHG is literally just acquired the brand. It is not even getting the operating contracts for the existing 20 Ruby hotels, which will remain with the seller. The seller will continue to receive all of the revenue from the existing properties plus the current pipeline, with IHG only receiving its usual franchise fees.

On top of this, the seller is being incentivised to continue opening new hotels under the Ruby brand.

Additional payments, which cap at €181 million for reaching 20,000 rooms, will be made in 2030 and 2035. This only relates to new hotels opened by the seller, not rooms opened by IHG with other operators.

It feels very similar to the deal Hyatt did recently with Lindner to take full control of Lindner’s ‘me and all’ lifestyle brand. This is now being rolled out by Hyatt without the involvement of Lindner.

There is no timeline for the integration of Ruby into IHG One Rewards. You should expect it to take at least six months based on what we’ve seen from Hyatt with recent bolt-ons.


IHG One Rewards news

IHG One Rewards update – April 2025:

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Comments (64)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Lumma says:

    Stayed in the one in Vienna. Was OK but felt it was trying too hard to be “cool”. I think they even pay for tattoos for staff after certain lengths of service.

    The room had a completely open to the bedroom shower, without even a curtain for privacy which also resulted in a wet floor

    • BJ says:

      That with the tattoos seems so weird to me. What’s going on, does the chain seriously want staff with visible tattoos?

      I dislike this trend towards open and semi-open bathrooms in hotels. I have no problem with nudity but can think of several reasons why they might be inappropriate in hotel rooms. Hotels with such designs need to be much clearer about them in room descriptions.

      • JDB says:

        I hope the employers later get sued by the employees for encouraging and participating in having their staff tattooed.

    • jj says:

      @Lumma, sounds like a concept that will look very dated in 15 years time when the current crop of urban hipsters have become unfashionably middle aged but still want to cling to the symbols of their youth.

    • Ken says:

      I’d be more impressed if they paid staff to get rid of their tattoos.

      I know it makes me look ‘judgey’, but I absolutely loathe them fresh never mind when they have aged 10-15 years later, and look even worse.

      Yeah, yeah , live and let live and all that.

    • RussellH says:

      The open shower is really not that unusual in Austria, and it does seem to be predominantly those from the UK who are up in arms about it.
      I saw my first one in Jan 2009, in Steyr during a site inspection with about 30 other tour operators and travel journalists en route to the ACTB trade fair in Vienna.
      My Scottish colleagues were, frankly, appalled. The English were only un-keen, shall we say. The Aussies and other Europeans did not bat an eyelid; one or two approved.

      Knowing full well that most of my Scottish colleagues customer base were coach groups for the more elderly, as well as being fully aware of general Scottish attitudes to nudity after living and working there for almost 30 years, I was hardly surprised.
      Nevertheless, travel is supposed to broaden the mind.

      • Milaneser says:

        If you want to really broaden the mind, try a weekend in Kirkcaldy 🙂

      • BJ says:

        I don’t have a problem with them other than that they remove (or more correctly complicate) the right of the individual to exercise privacy if they wish. Desire for privacy will vary enormously between friends, colleagues, couples, families irespectivevof where they come from and common views and attitudes in their own countries.

      • apbj says:

        Struggling to see a connection between being broad-minded and not wanting to shower openly in front of a parent or room-mate. Very odd.

        There are clear glass partitions between bed and shower/toilet in the AC Hotel Madrid Atocha; most of us do not want to see our spouse having a bowel movement, never mind a work colleague. It’s not ‘cool’ or ‘sexy’, just poor design.

      • jj says:

        @RusselH, if I’m staying solo or with my wife, an open shower is fine. If I’m sharing with a mate, it’s much less fine. Sharing the room with kids, it’s a problem.

        Just because you’re fine, don’t assume everyone is.

        • RussellH says:

          Please, my name does not include an”@” symbol. Why do people add it?

          And I was just pointing out that there are differences in behaviour and belief as to what is or is not problematic between countries.
          I am just a week back from a stay in Austria – I did not see an open shower in any of the rooms, but in the very extensive wellness area all sorts of people were wandering around without clothing, and the mixed changing and locker area had just two tiny spaces with a door for those who wanted to change behind a closed door.

          • meta says:

            @RussellH If you’re commenting on a website and in the forums in 2025 you should know what @ in front of the name means.

          • BJ says:

            @Russell, that is neither here nor there, people know the score and can choose or not to go there and use the facilities. I do not disagree with you that in some countries nudity in public places and in private spaces such as family homes is muvh more common and widely practiced than in others. However, in all of them exceptions either way are not unusual. A hotel room is different, it is a small confined space so if someone staying has a problem with it then it creates both unnecessary embarrassment for them abd others sharing the room. Hence it’s just simpker if hotel room bathrooms are private.

          • Gordon says:

            I remember you telling JDB off for using the @ symbol, last year, saying hfp is not a microblogging site IIRC, and he replied to you without it! Anyway I use it in the daily chat, as it clearly highlights in blue who you are addressing, or sometimes the quote button, but with the quote button your reply can go into the spam filter, waiting to be rescued, which can be frustrating, I presume the @ symbol is used in certain social media sites, but I don’t use them, so I am unsure.

          • RussellH says:

            Meta,
            I have been commenting on the internet since the 1980s. I have no idea what an “@” in front of one’s name indicates, but then I only ever see it here.

            Gordon,
            Yes, I did say something to JDB sometime ago, and I was glad that he dropped it, though he still seems to use it everywhere else.

            > Anyway I use it in the daily chat, as it clearly highlights in blue who you are
            > addressing, or sometimes the quote button…

            If you put someone’s name at the start, I would have thought it was blindingly obvious that you were replying to them, without their name turning blue.
            What would be good would be if when I quote here, using internet standard “>” marks, the quotes were in a different colour, but it seems that web browsers cannot / will not do that.

  • Dace says:

    Not sure this was completely necessary for IHG. Indigo/Voco seem to have this segment pretty much covered. What IHG really need(ed) to do was to keep/get hold of a SLH or Mr and Mrs Smith.

    • BJ says:

      I’m not sure there is even any point to try and distinguish between brands and segments anymore, there are now so many of them across all major chains that it’s getting a bit silly. For example, the recent Tribe review just came over as Ibis Styles to me.

    • JDB says:

      Trouble is those groupings like SLH don’t sit at all comfortably within these giant faceless chains and some of the individual hotels aren’t too happy about people demanding benefits they think they are entitled to by virtue of some super non exclusive membership.

    • John says:

      Indigo is not a conversion brand. voco is, but it targets more the traditional upscale segment. Ruby is different: It targets more Gen Y and Gen Z-ers with large communal spaces, Instagram-able bar, top location for a reasonable price due to compact rooms.

      Garner is also a conversion brand targeting, among others, Gen X and Y. But it’s in the economy segment.

      Vignette collection is also a conversion brand but more upscale than Ruby. IHG sees it somewhere between Kimpton and Intercontinental.

      While I think Ruby is somewhat similar to Indigo, it goes quite a bit further when it comes to small rooms, but larger communal spaces.

      I’ve never been to a Ruby but I would agree with HfP that both the M&A strategy as well as the hotel concept make it similar to me and all.

      In the bigger picture, I think this is one of the big chains trying to grab market share in times when the low-hanging fruits have all been picked already.

      • BJ says:

        How do you know all this stuff John, and more importantly how is Joe Bloggs supposed to know given they will stay in hotels much less frequently than HfP community?

        • John says:

          I think you’re right most people don’t know about IHG’s 20 brands or Accor’s 40 brands. But I don’t think they have to. There’s influencer marketing, there is strong personalization on Google Maps, there is TripAdvisor, the recommendation engine of IHG.com as well as the one of booking.com…

          • BJ says:

            I suppose my problem is that I have not fully-embraced the information age 🙂 To me a hotel is just a place to sleep, wash and eat that falls into 3 price brackets – budget, mud-scale and high-end, the rest just passes me by. Despite that I have come to recognise a personal preference for Indigo and Staybridge within IHG so perhaps all is not lost.

          • Rob says:

            You’re missing the point a little. Simply by existing, a hotel will get a certain number of bookings per night if they price correctly via Expedia etc, from previous guests, from people who know its convenient for where they need to be. This is your base line occupancy.

            Stick a brand on the front and you attract additional business PURELY because you are part of a big loyalty programme.

            Hotels have high fixed costs and low marginal costs so this additional business on top is disproportionately important to your profits. If there is enough of it, you can also push up your rates vs competitors.

            Whenever I talk to hotel managers I’m shocked by the % of guests which are programme members, especially elite members. IHG says that 50% of all room nights globally are booked by programme members.

            Hyatt Regency Blackfriars, for eg, told me that 75% of guests are World of Hyatt members. This hotel used to be a Crowne Plaza before rebranding. The guest profile has changed entirely.

          • meta says:

            @BJ But hotel is not just a place to sleep, wash and eat. If you really think that you can just stay in a hostel with twenty other people in the room or the cheapest room with the owner next door. You don’t need Indigo or Staybridge.

          • BJ says:

            @meta, I do understant that hotels and resorts are many different things for different people. However that is what they are for me most places most of the time. A hostel won’t do for me though, there is a minimum standard of room, furnishings, cleanliness et that I am prepared to accept. I generally don’t choose between budget, mid-scale and high end based on price but rather on what offers best value in location I want at the time I want.. mist of the time this happens to be mid-scale hotels. I only specifically seek out high-end hotels when celebrating a special occasion which are few and far between.

          • meta says:

            @BJ You prove exactly my point. Hotel for you isn’t just the place to sleep, wash and eat.

          • BJ says:

            @meta I thought you meant other stuff like using thr bar, pool etc. I can, and have in my student days, slept, ate and washed at railway stations and beaches. Hotels are just a niver places to do the same things. On the rare occasions I stay high end places it is still just about eating and sleeping in more comfortable room and hoprfully a proprtly cooked to order breakfast that hoes bryond the usual.

      • Rob says:

        Also worth noting that ‘conversion’ brands are attractive at the moment because high interest rates make it more difficult for developers to raise funding to build new hotels.

  • Chabuddy Geezy says:

    I would definitely stay if they opened a Ruby Murray Hotel near Brick Lane 😉

    • Ken says:

      Would be interested if anyone could recommend any decent ‘Indians’ on Brick lane these days.
      Ate there a lot 35 years ago but last 2 returns had terrible meals. And I mean probably the worst ‘Indian’ meals I’ve ever had.

      • Nick says:

        There aren’t any. Once you can trade off your name/location/fame you’re effectively incentivised to increase profits by reducing quality.

        If you want decent Bengali (what you mean by ‘Indian’ in inverted commas) go more suburban, there are plenty of excellent neighbourhood ones. And you can barely move in Southall for excellent Punjabi food. Or go more upmarket, there are a lot of decent places in central London with more authentic menus now than when Brick Lane developed.

        • BJ says:

          Mom and pop places can often be great but come with huge risks too. In Portland many years ago I popped into a small Italian place which could more aptly be described as granny and granps place. Lovely old couple but their cooking was disastrous; I don’t think they realised it and I felt compelled to eat it for fear of offending them.

  • NorthernLass says:

    These look quite nice, remind me of voco or Vignette properties. I noticed there are a couple in cities which currently don’t have many IHG options, like Cologne.

  • Gordon says:

    Moxy bath road springs to mind, a Ruby on steroids! It has a mini vehicle in the foyer also a wall containing portholes with phots in, a large biplane suspended from ceiling, amongst other weird and wonderful touches.

    • BJ says:

      Sounds like a transport museum 🙂

    • Panda Mick says:

      Moxy is my goto chain for Malpensa and Linate overnights. Despite the terrible pillows, the “vibe” seems to not be forced on you, and the bar is a pleasant place to stay. However, I walked from the Moxy to the Sheraton last year at MXP because the food selection was, shall we say, sub par.

      Footnotes: Don’t walk: there’s no footpath for at least half of the way. The foot in the Sheraton was lovely. The ambience not so much because you’re eating in an atrium

      • Brian says:

        Was it a left foot or a right foot in the Sheraton? 🙂

      • tw33ty says:

        Out of all the moxys I’ve been to, I really like the ones at cdg and Hamburg, even if there’s nothing really near the moxy at cdg.
        The ones is Lausanne and Bern for me deserve an honourable mention too.

    • RussellH says:

      That is the only Moxy I have stayed in, and quite liked it.
      Location has a lot to do with it – far enough away from LHR and basic enough that it was not at all expensive – but with a bus stop for the terminal opposite the front door.

      • Gordon says:

        I agree, I have two weeks parking through your parking space in the car park in 4 weeks time. And the bus stop is handy.

  • Irons80 says:

    As ever people don’t know how brands or marketing works – they launch more and new brands for the reason to expand as if you’re an Indigo or a Voco or CP owner you won’t another one of those brands on your patch (all hotels are franchises) so what the brand owner does is launch more brands to be able to put another hotel nearby and which they can show other owners is a different brand with a different target consumer. That’s all it’s about…

    • TGLoyalty says:

      I mean it makes me laugh when they say things like how many brands do these groups need

      Well since there’s literally thousands of them around they want them all.

      They want the business Expedia has to themselves.

      Red was already a brand it’s just now part of a bigger group and will pick up a load of new customers

  • Novice says:

    This sounds awful. I am sick of these hotel chains having so many brands. I always forget about the hierarchy. Always have to check which order are they placed in. So, now I don’t bother, just check room size, amenities and location and pics; depending on how long I am staying do research or don’t bother.

    • BJ says:

      It used to be easy because it used to be largely based on a distinctive hierarchy. The problem now is that there are many parallel niche brands that are both difficult to distinguish and place within a hierarchy.. i think best just to create a shortlist on a stay by stay basis based on value and location then research reviews to figure out best fit.

    • TGLoyalty says:

      Why not just treat it the way you would with any other booking site and pick the one in the best location for you that looks the nicest for the price you can afford.

      • Novice says:

        Well that’s what I do now. But it’s about expectations. A person expects a different experience in luxury collection property than autograph collection etc. I would prefer if it was easier to establish what brands are actually upscale.

  • BA-Flyer says:

    Any hotel which boasts that you can “grab a guitar from the bar and plug into the Marshall amp in your room”, is not for me. The last thing I want is to hear the person in the room next to me playing the guitar (regardless of how well they play it).

    • TGLoyalty says:

      I bet the vent diagram of people that stay there and would actually do it is extremely limited if not nil.

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