IHG Lands Ruby Hotels For A Hot £87.6 Million
InterContinental Hotels Group – the FTSE‑100 giant that runs Holiday Inn – just snatched up Ruby Hotels for an initial £87.6 million. The move marks a bold step into the growing “urban micro‑hotel” niche, with a fast‑growing portfolio that’s already proving profitable.
Why Ruby Hotels? A Quick Snapshot
- Founded in 2013, Ruby Hotels now boasts 20 properties worldwide.
- Three of those gems are located in the UK’s capital.
- They’re built on a franchising model that’s win‑win for owners and guests alike.
IHG’s Take‑Away Numbers
In the past year, IHG’s operating profit nudged up 7% to a whopping £1.83 billion. Meanwhile, global revenue per available room (RevPAR) climbed by 3%, hitting a 4.6% surge in the final quarter. These gains fuel the confidence that the future is bright.
CEO Elie Maalouf on the Strategic Move
“The acquisition demonstrates our focus on building presence in large, attractive industry segments. We’ll use our experience of integrating and growing brands and hotel portfolios,” he told reporters. His rallying cry? “The urban micro space is a franchise‑friendly model with attractive owner economics. 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, as we have successfully done with previous brand acquisitions.”
Why It Matters
With Ruby already carving out a distinctive niche, IHG’s takeover is more than a financial win – it’s a strategic leap into a booming segment that promises steady growth and higher returns for both investors and guests.
