The Grade II-listed Cathedral Quarter Hotel in St Mary's Gate has been bought by Rashmi Dedigama and Peter Karan of Lavendish Leisure, a subsidiary of the Dedigama Group, for an undisclosed amount

The city centre hotel, where the late Queen Elizabeth II dined in 2010, which earned the head chef her personal thanks, has 38 individually designed ensuite bedrooms. It is a Victorian property that previously served as a police station and also as council headquarters.

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