Last week Coal Exchange Operations LLP terminated its association with Eden Grove Developments Limited. Consequently, the Cardiff Coal Exchange Hotel has now ceased its operations.
The historic Grade II-listed building, previously renowned for establishing the global coal price, underwent a £40m renovation and reopened in 2017. It was a component of the Signature Living group until the company entered administration in 2020
A spokesperson for the operator said:
“It is with considerable regret that we have reached this point. This is something that could have been avoided.
“We have worked tirelessly to reach an agreement with freeholder Eden Grove Developments Limited who took possession of the hotel on December 27th, 2023.
“But it has become apparent over the last two weeks they were not willing to work with us to secure the future of the business.
“Our immediate concern is for the staff whose jobs have been affected, and with customers who have outstanding bookings. We will do everything in our power to assist both.
“Due to ongoing legal action involving Eden Grove Developments Limited and other vested parties, our ability to comment is limited.
“However, it has become clear in recent weeks that Eden Grove Developments does not have its interests aligned with the existing operating business and has imposed restrictions resulting in a huge drop in revenue. This has made it impossible to operate the hotel as a viable concern.
“We have repeatedly asked them to urgently invest the necessary funds to make up for the drop in revenue and to ensure the hotels immediate future, but Eden Grove Developments have made it clear no funds will be made available.
“It is hugely frustrating that they have chosen a path which can only lead to huge disappointment and disruption for staff and customers.
“The investors have already invested significant funds in their vision for the future of the business and extensive redevelopment of the property.
“It remains our hope the legal ownership of the hotel can be sorted out as soon as possible allowing the hotel to reopen, and investors are able to commence with refurbishment plans creating a venue that will attract visitors from all over the world to Wales.
