The Otto family has acquired a 25 per cent share in the Ruby Hotel Group.
Ruby Hotels was founded in 2013 as a ‘lean luxury’ group and currently operates seven properties.
Another ten are under construction or being prepared for construction.
Alexander Otto, chief executive of ECE: “As of today, ECE Group already is among the three largest hotel developers in Austria, Germany and Switzerland.
“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.”
The Munich-based Ruby Group, founded by chief executive Michael Struck, Michael Hehn and the Soravia Group, is seeking to break new ground with its ‘lean luxury’ philosophy.
By having a lean organisational structure and concentrating on the essentials, Ruby manages to create a contemporary, affordable form of luxury for modern, cost- and style-conscious customers.
Struck added: “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.”
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.