The Otto family office, owners of shopping centre specialist ECE, has acquired a 25% share in the Ruby Hotel group.
Financial details were not disclosed.
The acquisition was carried out via a capital increase. Ruby Hotels was founded in 2013 as a Lean Luxury hotel group and is currently operating seven Ruby hotels. Another ten hotels are under construction or being prepared for construction.
'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,' said Alexander Otto, CEO of ECE.
Michael Struck, CEO of Ruby Hotels 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.'
ECE recently signed Ruby Hotels as tenant for a former office space at Kö Galerie Düsseldorf, illustrating potential synergies, the group said. ECE is also planning a congress hotel and a long-stay concept for the Marriott group in Hamburg’s HafenCity district.
