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Diving brief:
- IHG Hotels & Resorts acquired the lifestyle hotel based in Germany Ruby For around $ 116 million, the company announced Tuesday in its benefit of profit from the fourth quarter and the full year in 2024.
- Ruby, created in 2013, currently operates 20 hotels in major European cities, with 10 others in progress. In a press release, the CEO of IHG, Elie Maalouf, said that the company planned “to quickly take this fascinating brand to the Americas and through Asia, as we did with success with the brand acquisitions previous “.
- The acquisition reflects the wider IHG strategy to build its presence “in major attractive industry segments,” said Maalouf. Part of this strategy was a Quick extension of the luxury and lifestyle hotel portfolio in the United States
Diving insight:
In his Gains report TuesdayIHG has posted global growth from revPar from one year to other 3% for the full year 2024 and 4.6% for the fourth quarter. The RevPar for the Americas region increased by 2.5% and 4.6% for the full year and the fourth quarter, respectively.
In a press release, Maalouf called 2024 “an excellent year of financial performance, strong growth and significant progress”.
The company opened 371 hotels worldwide in 2024 and added 714 to the pipeline, an increase of 34% year by year. Development progress has led to a global increase of 10% to more than 2,200 hotels.
In the Americas, in particular, IHG opened 16,832 rooms and signed 26,552 in 2024.
The newly acquired Ruby brand offers a “model adapted to franchise” in “the micro urban space”, according to Maalouf. The company is in the middle of an ambitious expansion of its Conversion mark “ready for franchise”Garner, who now has 117 hotels open worldwide, according to the report.
Apart from Garner, the other seven IHG brands have launched or acquired in recent years – Regent,, Six senses,, KimponVignette, Voco, Avid and Atwell Suites – have reached 5% of the total size of the current system and 17% of the pipeline.
Company hotels Luxury and growing lifestyle segment represent 14% of the size of the current IHG system and 21% of its pipeline, according to the report.
IHG expects the franchise fees of the current Ruby portfolio of about $ 8 million in 2028.