While many hoteliers struggle with new development costs, Ruby's conversion strategy is proving to be a masterstroke in the current high-interest rate environment.
The Ruby Group has announced its continued Swiss expansion with a second hotel in Geneva, developed in partnership with PSP Swiss Property, one of Switzerland's leading real estate companies. The project will transform a listed former bank building at 18 Rue de Hesse into a 124-room Lean Luxury hotel, marking the group's third Swiss property and 34th hotel overall.
Located in the heart of Geneva's financial district, the 4,150 m² conversion project sits at the intersection of the historic Quartier des Banques and the creative Les Bains district. The prime location offers excellent connectivity, with major tram and bus stations nearby and just 15 minutes from Geneva Airport. The property is also within walking distance of the Rhône and Ruby's existing Claire Hotel & Bar.
For investors tracking the European hospitality sector, Ruby's focus on office-to-hotel conversions represents a particularly shrewd strategy amid rising construction costs and sustainability mandates. By repurposing existing structures, the group avoids the substantial carbon footprint and regulatory hurdles associated with new builds while capitalising on prime locations that typically command premium room rates. Industry analysts estimate conversion projects can deliver 15-25% higher returns on investment compared to ground-up development in the current market climate.
"This project reflects well what Ruby stands for – thoughtfully designed spaces, smart and efficient use of existing architecture, and the ability to create attractive hotels in prime locations in the city. Thanks to our sleek, centralised structure and in-depth development knowledge, we are able to transform even complex monumental buildings into future-proof hotels. We are proud to continue our partnership with PSP Swiss Property and excited to open another Ruby hotel in Geneva," commented Julian Mörs, Senior Director Development at the Ruby Group.
"We are excited to announce the newest addition to Ruby Hotels in Geneva, a city renowned for its rich culture and international status. Located in the heart of the bustling financial district and close to Geneva's most iconic attractions, this hotel will be the perfect base for modern lifestyle travellers looking for charming and authentic experiences. We look forward to working with The Ruby Group and PSP Swiss Property to bring this hotel to life," added Willemijn Geels, Vice President, Development, Europe at IHG Hotels & Resorts.
"We are delighted to further develop our partnership with The Ruby Group and transform this historic building in Geneva's banking district into a vibrant destination. The opening of a new Ruby Hotel will not only transform the building, but also contribute to the development of the entire banking district," said Peter Cloet, Director, Asset Manager, PSP Swiss Property Geneva. The opening of the hotel is scheduled for Q3 2028 as part of Ruby's broader European expansion that includes projects in Berlin, Copenhagen, Rotterdam and Stockholm.
People mentioned:
- Julian Mörs - Senior Director Development at the Ruby Group
- Willemijn Geels - Vice President, Development, Europe at IHG Hotels & Resorts
- Peter Cloet - Director, Asset Manager, PSP Swiss Property Geneva
Companies mentioned:
- The Ruby Group - Hotel development and operating company specialising in Lean Luxury hotels
- PSP Swiss Property - Leading Swiss real estate company and development partner
- IHG Hotels & Resorts - Global hospitality company and brand partner of Ruby
Image source: © PSP Swiss Property
