A new 88-room Ruby Hotel on Valletta’s historic Strait Street is on track for completion in the second half of 2026, according to an investor update issued this week by VBL Group.

The Valletta-focused real estate company said structural works and interventions on the property’s built envelope “have been completed in all material aspects.” Founder and CEO Andrei Imbroll noted that while these works concluded “with some delay,” they ultimately came in below budget.

The project has now shifted into its finishing phase. Mechanical and electrical systems, as well as all furnishings, have been contracted to a single main contractor – an approach VBL expects will streamline execution. The proposed hotel has secured full development approval, including clearance from both the Malta Tourism Authority and the Superintendence of Cultural Heritage.

Dr Imbroll noted the difficulties VBL had in securing full ownership of the block, pointing out that it had 73 different owners, 19 tenants, and a 5 per cent share held by Government.

A chief marker of VBL’s success in overcoming challenges, he continued, was that the company was attracting the first foreign hospitality brand to Valletta.

“The fact that it is 2025 and there are still no international hotel chains in a European capital city, and that we are now about to change that, shows just how far VBL – and Valletta – have come over the last 10 years.”

Ruby Hotels, known for its “lean luxury” philosophy, will pair state-of-the-art features – such as advanced HVAC, lighting and window systems – with the preservation of the building’s original character to anchor the hotel firmly within its Valletta setting. Many rooms will also benefit from sea views.

While the partnership with Ruby involves developing a higher standard final product, which comes with higher initial capital expenditure, VBL CFO Julian Tzvetkov emphasised that the 30-year lease agreement provides long-term stability and value-generation potential for the project, which is expected to generate €2-2.5 million per year, with potential upside depending on the hotel’s performance.

“The new hotel will effectively stand alone as the major international hotel in Valletta,” Dr Imbroll said, adding that the property will operate as a 4-star establishment. Under current planning guidelines, 5-star hotels in Malta are required to occupy stand-alone buildings.

In the time since Ruby and VBL entered the 30-year agreement, the hotel brand was acquired by InterContinental Hotels Group (IHG). IHG notably operates one of largest global loyalty programmes, with 145 million members. Around 60 per cent of all IHG guests are part of its loyalty programme, with Ruby – including the new Valletta hotel – set to benefit from the influx of interest.

Once completed, the Ruby Hotel is expected to strengthen Valletta’s accommodation offering and add further momentum to the capital’s ongoing regeneration.