Lavendish Leisure has expanded its presence in the UK hospitality market with the acquisition of the historic Cathedral Quarter Hotel in St Mary’s Gate, Derby.
Financial terms and other details of the transaction remain undisclosed.
According to Boutique Hotelier, the hotel is a Grade II-listed Victorian property, known for hosting the late Queen Elizabeth II in 2010, and was acquired by Lavendish Leisure's Rashmi Dedigama and Peter Karan.
Cathedral Quarter Hotel is the second hotel purchased by Lavendish Leisure in the UK.
A former police station and council headquarters, the hotel is a Victorian-style property that features stained-glass windows, mosaic floors, and an imposing central staircase.
The Cathedral Quarter Hotel also offers other amenities such as Bogart’s cocktail bar and the British restaurant Opulence.
In 2008, the property underwent a transformation that was carried out by its previous owners, The Finesse Collection.
The Finesse Collection was also responsible for converting the property into a boutique hotel.
Boutique Hotelier quoted Rashmi Dedigama as saying: “We look forward to capitalising on the existing reputation of the hotel whilst putting our own stamp on it.”
A subsidiary of the Dedigama Group, Lavendish Leisure has been actively acquiring hotels since 2005, with the Cathedral Quarter Hotel being its eighth acquisition.
With interests in various sectors, the Dedigama Group is diversifying its portfolio through strategic investments in the hospitality industry.
Commenting on the acquisition, Colliers’ Hotels Agency team associate director Josh Sullivan, who handled the sale, said: “The hotel was sold in a confidential fashion and yet generated substantial interest resulting in multiple offers.
“The hotel presented exceptional value given its size, location and potential to trade competitively within its market. The buyer has ambitious plans for the business and we look forward to seeing it flourish. This transaction further underpins the continued demand for sensibly priced, well-located regional hotel opportunities with the ability to add value.”
