The Cathedral Quarter Hotel in Derby city center has recently been sold to new owners from Sri Lanka. The hotel’s new owners plan to bring a fresh perspective and an infusion of cultural diversity into the Derby hospitality scene by enhancing the hotel’s offerings and creating a unique blend of local charm with their own cultural influences.
Derby’s major Cathedral Quarter Hotel, a Grade II-listed property on St Mary’s Gate, has been purchased for an undisclosed amount by Rashmi Dedigama and Peter Karan of Lavendish Leisure, which is a subsidiary of the Dedigama Group.
The city center hotel, where the late Queen Elizabeth II dined in 2010 and personally thanked the head chef, features 38 individually designed ensuite bedrooms. It is a Victorian property that has previously functioned as a police station and council headquarters.
The property was purchased by the previous owners, The Finesse Collection, in 2008 and transformed into a boutique hotel. It still showcases its period features such as Victorian mosaic floors, stained-glass windows, and a grand central staircase.
Lavendish Leisure has acquired its second UK hotel, marking the company’s eighth purchase since 2005. The parent company is based in Sri Lanka. Rashmi Dedigama expressed excitement about acquiring this beautiful period hotel, which represents the company’s second acquisition in the UK. They aim to build on the existing reputation of the hotel while adding their own unique touch to it.
The Dedigama Group specializes in financial services, jewelry, gem and jewel exports, real estate, and plantations. The hotel also features a cocktail bar called Bogart’s and a British restaurant named Opulence in addition to the bedrooms.
Josh Sullivan, the associate director of Colliers’ Hotels Agency team who handled the sale, stated: “The hotel was sold confidentially and still managed to generate substantial interest, leading to multiple offers.”
Given its size, location, and potential to trade competitively within the market, the hotel offered exceptional value. The buyer has ambitious plans for the business, and we are excited to witness its flourishing. This transaction further emphasizes the ongoing demand for sensibly priced regional hotels in well-located areas with strong potential for value addition.
Sri Lanka is famous for its stunning natural landscapes, rich cultural heritage, and warm hospitality. One of the leaders in Hospitality industry in Sub-Continent, Sri Lanka has seen a growing trend of repurposing historical buildings for heritage tourism. It is great to see that Lavendish Leisure, a subsidiary of the Dedigama Group, has acquired this beautiful period hotel in the UK and plans to enhance its charm and reputation.