IHG Acquires European Hotel Brand Ruby
Photo Credit: The lounge at Ruby Ella Hotel and Bar, Cologne, Germany. IHG
Skift Take
IHG reported strong Q4 2024 results, announced the acquisition of the Ruby brand, raised its dividend by 10%, and launched a $900 million buyback, but investors remained unimpressed despite its strong performance.
The DJIA rose 10 points, the Nasdaq was up 14, the S&P 500 was up 15 points, and the 10-year treasury yield rose .07 to 4.54%. Lodging stocks were higher. a new all-time high, but the biggest mover of the day was to the downside, with SOND down -9%.
IHG reported 4Q24 results, along with an acquisition, higher dividend, and buybacks, and investors continued their trend of acting like good isn’t good enough for the C-Corps, given their outperformance the past year. IHG announced they are buying the Ruby brand, an urban lifestyle brand located in city destinations such as Dublin, London, Vienna, Geneva, Florence, and Frankfurt. The brand has 20 open hotels and 10 in the pipeline. IHG expects to rapidly grow the brand globally, targeting 120 in 10 years and 250 in 20 years. Initial purchase consideration is $116 million (110.5 million euros). They paid 109 million euros upfront, with the rest paya
