IHG Acquires Ruby Hotels: A Strategic Move Amidst Profit Growth

InterContinental Hotels Group (IHG), the owner of the Holiday Inn brand, has announced the acquisition of Ruby Hotels for $116 million. This strategic move comes as IHG reported a 10% rise in 2024 operating profits to $1.12 billion over the previous year. The acquisition of Ruby Hotels, a European urban lifestyle brand with 20 hotels and eight workspaces across Europe, further enriches IHG's portfolio with an exciting, distinct, and high-quality offer for both guests and owners in popular city destinations.



IHG chief executive Elie Maalouf disclosed the deal while reporting the strong financial performance, stating that the acquisition demonstrates the company's focus on building its presence in large, attractive industry segments and using its experience of integrating and growing brands and hotel portfolios. The urban micro space, a franchise-friendly model with attractive owner economics, presents excellent opportunities for IHG to not only expand Ruby's strong European base but also rapidly take this exciting brand to the Americas and across Asia, as it has successfully done with previous brand acquisitions.



The acquisition of Ruby Hotels adds another brand to IHG's portfolio, bringing the total to 20. This diversification allows IHG to cater to a broader range of customer preferences and market segments, further enhancing its competitive position in the global hospitality industry. The acquisition also aligns with IHG's strategic focus on building its presence in the urban micro space segment, which is expected to grow significantly in the coming years.

In addition to the acquisition of Ruby Hotels, IHG has been actively expanding its brand portfolio through a series of takeover deals. This strategy has enabled IHG to grow its global estate to over 6,600 hotels, with a pipeline of over 2,200 hotels representing future system size growth of 33%. This expansion has been driven by strong demand from hotel owners and developers for IHG's brands, with the opening of 371 hotels and the signing of 714 properties into the pipeline in 2024 alone.

IHG's acquisition of Ruby Hotels is a testament to the company's commitment to growing its brand portfolio and expanding its presence in attractive industry segments. By integrating Ruby Hotels into its portfolio, IHG is well-positioned to capitalize on the growing demand for urban micro space accommodations and further strengthen its position as a leading player in the global hospitality industry.