Dive Brief:
- On Monday, IHG Hotels & Resorts debuted the first U.S. property for its premium urban lifestyle brand Ruby Hotels in Chicago.
- The historic Inn of Chicago building will be renovated and repositioned into a 22-story, 412-key Ruby hotel. Munich-based Ruby Group will develop and operate the property under a 30-year franchise agreement with IHG, according to a release. Orange County, California-based Berk Properties will collaborate on the development.
- IHG acquired the German-based Ruby Hotels brand last year, and subsequently announced its expansion to the U.S. in September. The brand caters to travelers seeking a bespoke lifestyle offering as well as hotel owners looking to grow in the segment through a straightforward development path, Lauren Krostue, vice president of global brand management at IHG, told Hotel Dive in October.
Dive Insight:
Slated to open in 2027, the Chicago Ruby will offer “a lobby and bar experience” as well as a rooftop terrace and bar with views of the city’s skyline, according to the release. Ruby Hotels is a “bar-forward concept” that caters to both travelers and locals, Krostue said.
Ruby Hotels’ “storytelling through design” sets the brand apart from others in the competitive lifestyle segment, Krostue added. The Chicago hotel will “blend soulful design” with the storied past of its 1920s building, per IHG.
The Chicago Ruby will also feature updated public spaces and guest rooms with efficient layouts and premium finishes, “delivering an elevated experience at a lower cost per square foot for strong returns” for owners, per the release.
Kevin Schramm, IHG’s senior vice president of mainstream brands in the U.S. and Canada, told Hotel Dive last month that initial conversations with potential Ruby owners “have gone well, and they recognize how the unique designs and ‘premium at a lower price point’ guest offerings that have allowed Ruby to thrive in Europe can cross over here.”
Ruby properties won’t be complicated to develop, Krostue previously told Hotel Dive. The brand has a fairly prototypical guest room as well as a design process that makes it “turnkey for an owner to achieve unique design,” she said. Ruby Hotels offers conversion and new-build development options.
The Chicago signing “underscores the brand’s strong growth potential and momentum in key locations across the Americas and around the world,” IHG Americas CEO Jolyon Bulley said in the release. IHG will initially target the top 25 U.S. markets for Ruby’s growth, per Krostue.
Earlier this month, IHG tapped Mark Sergot as chief development officer for the Americas. He’s tasked with driving the growth of IHG’s hotel deal pipeline across its luxury and lifestyle, premium, essentials and suites portfolios.
