Ruby Hotels has a German brand heritage. Now, it will be available to franchise in the U.S.
Ruby Hotels was founded in 2013 by Michael Struck, who earlier this year sold the brand, which operates around 20 hotels across Europe, to IHG Hotels & Resorts for for upwards of $300 million. Days after Elie Maalouf, CEO of IHG Hotels & Resorts, told the audience at the Skift Global Forum: “We’re going to bring [Ruby] to the U.S. by the end of the year for franchising,” that proclomation became official. Ruby, IHG’s 20th brand, is now formally ready for development in the U.S. as “a new and attractive option for cost- and style-conscious travelers in U.S. city centers,” IHG said in a press release, adding that the brand represents a “versatile alternative” for high-barrier-to-entry city markets.
IHG expects as many as 10 more Ruby properties to open by the end of 2027 with the pipeline still skewing toward Europe. But Maalouf said scaling the brand means developing hotels in the U.S. The brand is premium, but not luxury, stripped down and design-led with smaller rooms and absent large meeting room space and F&B.
Ruby now includes 34 open or pipeline hotels in major European cities, including Edinburgh, Marseille, Rome and Stockholm. Of the 20 operating hotels, nine are in Germany (Cologne, Dusseldorf, Frankfurt, Hamburg, Munich and Stuttgart), with the remainder in London (three), Vienna (two), Switzerland (two in Geneva and Zurich)) and one each in Italy, Ireland and the Netherlands.
In the U.S., Ruby will prioritize major urban markets and accommodate a range of project types including new builds, conversions and adaptive reuse. Ruby’s U.S. availability reflects IHG’s ambition to grow the brand to more than 120 hotels globally during the next decade and more than 250 during the next 20 years. IHG said it expects continued accelerated global growth in the “urban-micro” segment, similar to peer brands, like Marriott International’s Moxy and Hilton’s Motto.
Beyond Europe and U.S. expansion, Maalouf said a move into Asia would follow
“Ruby is a brand built for the future of hospitality. Its success in Europe speaks to the growing demand for flexible, lifestyle-focused hotels in highly traveled locations,” said Jolyon Bulley, CEO, Americas, IHG Hotels & Resorts. “Ruby’s U.S. introduction will complement our premium portfolio and offer owners a differentiated product with strong economics and scalable growth potential. We’re encouraged by the initial interest and buzz around Ruby, which reinforces our confidence in its appeal and ability to thrive in this market.”
Ruby’s “premium urban lifestyle approach,” typically characterized by a smaller footprint to fit into city landscapes, prioritizes necessities over whhat IHG calls “unwanted extras.” Each hotel room offers what IHG calls “cozy beds, premium finishes and fixtures, rainfall showers and high-quality bath amenities.” Public spaces feature 24/7 bars serving unique cocktails and barista coffee.
“Ruby empowers IHG to connect with a new type of traveler—the individualist who values soulful, character-driven premium stays at an affordable price point,” said Lauren Krostue, VP of global brand management for Ruby. “In bringing Ruby to the U.S., we will retain what’s made the brand so special in Europe, including its unique design and operating model, while localizing certain elements to reflect market needs. We look forward to introducing the Ruby experience to a new group of owners and guests and showcasing what sets the brand apart in the increasingly popular urban-micro segment.”
IHG says that franchise registration for Ruby Hotels is still pending in certain states. Interested owners and developers are encouraged to contact the IHG Development team to confirm local franchise opportunity availability.