Ruby Group, a German-based hotel and real estate operator known for its Lean Luxury concept, has announced a new mixed-use project on Kurfürstendamm, one of Berlin’s most iconic and commercially vibrant boulevards.
The ambitious development will feature a 200-room hotel, coworking spaces, retail units, and a rooftop terrace — all designed with energy-efficient, sustainable technologies. The project reflects Ruby’s growing footprint in premium European cities and the group’s strategy of combining smart luxury with strong investment fundamentals.
What the Project Includes?
The project is being developed in partnership with renowned German architectural firm Sauerbruch Hutton and will combine historic preservation with modern functionality. The building will undergo full reconstruction, maintaining its original street-facing façade while completely upgrading interior systems.
Key components of the project include:
- A 200-room designer hotel
- Flexible coworking and meeting spaces
- Ground-level retail and dining areas
- A panoramic rooftop terrace
- Smart automation systems and green building technology
This is in line with Ruby Group’s Lean Luxury model: stylish, compact accommodations with a focus on digital convenience and affordability.
Investment Scale and Financial Overview
The total investment value is estimated at €75 million, distributed as follows:
- €55 million for structural work, MEP systems, and core upgrades
- €20 million for interiors, digital infrastructure, furnishings, and finishing touches
💼 According to the developer, the project is expected to deliver an ROI within 7 to 10 years, based on 80%+ hotel occupancy and full commercial lease-up.
Real Estate Market on Kurfürstendamm
Kurfürstendamm (or Ku’damm) is a prestigious address, lined with flagship stores, galleries, and luxury hotels. Its location in Charlottenburg-Wilmersdorf ensures strong foot traffic, affluent demographics, and excellent transport links.
🏢 Property values in the area:
- Commercial units: €8,000 to €15,000 per m²
- Residential properties: €6,500 to €12,000 per m²
- Retail rent: €60–100 per m²/month, premium units exceed €120 per m²
Such figures indicate a highly competitive real estate market with stable appreciation potential — ideal for investors and long-term leaseholders.
Berlin’s Hotel Market: Still Growing
As of 2024, Berlin’s hospitality market includes:
- Over 700 hotels
- More than 140,000 rooms
Despite a saturated market, demand remains robust in the designer boutique segment. Ruby Hotels typically offer rooms starting at €100 per night, while competitors in the same area average €220–400 per night.
📊 The strategic positioning of the Ruby hotel on Kurfürstendamm taps into high tourist footfall and growing corporate demand for flexible, stylish accommodation.
Commercial Leasing Potential
In addition to the hotel, Ruby Group will develop retail and restaurant units on the lower levels. Talks are underway with international fashion brands, cafes, and art galleries to lease the spaces.
🛍️ Estimated rental income:
- Base retail: €60–100 per m²/month
- Premium storefronts: €120+ per m²/month
According to real estate firm Savills, mixed-use hospitality projects in Berlin’s prime districts typically reach breakeven in 7 to 9 years, making this development a solid mid- to long-term investment opportunity.
Sustainability and Smart Systems
Ruby Group is committed to sustainable building and operations. The Kurfürstendamm project aims to achieve LEED Gold certification and will include:
- Photovoltaic solar panels on the roof
- Energy recovery systems for heating and cooling
- Smart building controls for lighting and climate
- A mobile guest app for check-in, keyless access, and room service
- Low-impact materials and reduced plastic use throughout
♻️ These features not only reduce operational costs but also meet the growing demand for ESG-compliant real estate investments.
Timeline and Development Milestones
📆 Key dates:
- Construction Start: September 2025
- Completion: December 2027
- Grand Opening: Spring 2028
The project has already received preliminary approval from Charlottenburg-Wilmersdorf authorities and is currently in the planning phase.
Market Outlook and Regional Impact
Experts at CBRE predict a 5–7% rise in local property values within two years of the development’s opening. Additional benefits include:
- Enhanced tourism and business traffic
- Improved commercial leasing conditions nearby
- A boost to local economic activity and employment
🔍 For investors, this means long-term capital appreciation, stable income potential, and a foothold in one of Berlin’s most prestigious corridors.
✅ Conclusion
The Ruby Group development on Kurfürstendamm is more than a hotel — it’s a modern urban transformation. Combining premium location, sustainability, design, and commercial logic, the project exemplifies next-generation real estate thinking.
🔑 For investors: an attractive mid-term investment in a blue-chip location
🏙️ For tenants: high-visibility retail in a luxury retail corridor
🌱 For the city: a new sustainable icon in Berlin’s urban evolution
