Former Department Store to Transform into a Luxury Hotel

Corvin Palace

The Ruby brand will continue its expansion in Europe as the hotel chain will open its first unit in Hungary, announced Michael Struck, founder and managing director of Ruby Hotels.

The hotel opening in Budapest is Ruby Hotels’ first Central and Eastern European project. The chain has chosen the iconic Corvin Palace, the former Corvin Department Store’s building, as the location for its launch, Világgazdaság reports. The 181-room hotel is expected to open at the end of 2026 in the building, which will be exactly 100 years old by then.

According to a statement from Ruby Hotels,

the future home of Ruby Hotel’s first Central and Eastern European unit will be in the Corvin Palace Budapest, that will feature 181 stylish rooms and commercial, gastronomic and cultural units on four floors.

The project will start at the end of 2025, and the hotel is expected to open at the end of 2026, in the building on Blaha Lujza Square, built in 1926, and listed as the oldest department store in Budapest.

Fact

Opened in 1926, the Corvin Department Store was one of the most visited department stores in the capital thanks to its central location. It was nationalized after the Second World War, and the damaged facade facing the square was covered with aluminum in the 1960s. The building has undergone a complete renovation in recent years, during which the cover, which had disfigured the building for decades, was removed and the facade restored to its original form. The renovated building opened its doors in August 2023, under the name Corvin Palace.

The Corvin department store in 1951. Photo: Fortepan / UTATERV

The future Ruby Hotel in Budapest will be located in one of the city’s busiest squares, just 25 minutes from Liszt Ferenc Airport, with convenient transport options for international tourists.

Elena Günther-Jakobs, Vice President for Development of the Northern and Central Europe region, said: “Budapest is a city of incredible energy and creativity, making it an ideal destination for our target group. The hotel market in Budapest is showing sustainable growth and offers great potential for our Lean Luxury concept, which offers our guests a stylish, high quality but affordable accommodation option.”

The former ugly duckling in 1971 with its aluminium facade. Photo: Fortepan / FŐFOTÓ

Olivér Balogh, co-owner of Corvin Palace, said that

Time Out Market Budapest will open next to Ruby Hotels in Corvin Palace, finding the best way to celebrate the 100th birthday of their iconic building in 2026.

Twenty Ruby hotels are in operation across Europe, with a further ten already under construction or in the planning stages. Founded in 2013, the Ruby brand’s success is said to lie in offering an affordable form of luxury. The group is also expanding into China through a joint venture with Delonix, led by Alex Zheng, one of China’s most known hotel entrepreneurs.

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