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‘Lean luxury’ Ruby Hotels embraces new ownership structure

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Ruby Hotel group, which has announced plans for its first hotel opening in London next year and another one to follow in 2021, has announced an acquisition of 25% of its company by the Otto family, which owns ECE.

The hotel group has found a niche in the market with its ‘lean luxury’ concept, which essentially means that it cuts costs wherever possible on frills that it considers superfluous, thus allowing it to provide a form of luxury at a lower-than-expected price.

Ruby Hotels was founded in Germany in 2013 and currently operates seven hotels across Europe, with another 10 under construction (or soon to be under construction).

Meanwhile, ECE develops and operates shopping centres and realises large-scale real estate projects such as corporate headquarters and hotels.

Michael Struck, CEO of Ruby Hotels, said of the new relationship with ECE: “This partnership provides Ruby with access to ECE Group’s pan-European network and development expertise. Based on the flexible room design concepts and the mixed-use approach of building design, we see major opportunities in the extension or conversion of inner-city retail space.”

ECE’s CEO, Alexander Otto, said: “As of today, ECE Group already is among the three largest hotel developers in the DACH region. By getting access to the operational expertise of Ruby hotels and combining it with our existing competences in developing hotels, we will gain an excellent position to further strengthen our hotel investment activities.”

For example, ECE has managed to sign Ruby Hotels as tenant for a former office space at Kö Galerie Düsseldorf. ECE is also planning a congress hotel and a long-stay concept for the Marriott group in Hamburg’s HafenCity district.

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Tags : businessfinancehotelsLean luxuryrevenueRuby Hotels
Zoe Monk

The author Zoe Monk

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