Derby's iconic Cathedral Quarter Hotel sold - and the buyer has 'ambitious' plans

An iconic Grade II listed hotel in the heart of Derby has been sold.

The Cathedral Quarter Hotel has been purchased by Lavendish Leisure, a subsidiary of the Dedigama Group.

The 38-bedroom hotel is a Victorian property that was originally built in the 19th century. Located in the heart of Derby’s commercial district on St Mary’s Gate, the building previously served as a police station and also a council headquarters.

Go beyond just reading the story - sign up for the DerbyWorld ne

In 2008, the current owners, The Finesse Collection, purchased the property and converted it into a luxurious boutique hotel. The property retains its period features, including Victorian mosaic floors, stained glass windows, and a grand central staircase.

This is the second UK-based hotel purchased by Lavendish Leisure. Rashmi Dedigama said: “We’re thrilled to be taking on this stunning period hotel which marks our second acquisition in the UK. We look forward to capitalising on the existing reputation of the hotel while putting our own stamp on it.”

In addition to the bedrooms, the hotel has a stylish cocktail bar, Bogart’s, and a renowned British restaurant, Opulence.

Josh Sullivan, associate director in Colliers’ Hotels Agency team who handled the sale commented: “The hotel was sold in a confidential fashion and yet generated substantial interest resulting in multiple offers.

“The asset 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.”