The former Potarch hotel in Royal Deeside, Aberdeenshire, is to be redeveloped to create a four-star, 40-bedroom hotel, spa and conference centre, at a cost of £7m.
Plans are currently being drawn up to transform the six-bedroom property into a business which will create 40 jobs and become a principal attraction for the north east of Scotland.
Subject to planning, work will start on the Ballogie Hotel & Spa mid next year, with a projected opening in autumn 2015. The application for planning permission will be made in February.
Located 20 miles from Balmoral, the development is being undertaken by Ballogie Estate Enterprises, a family run enterprise with interest in farming, forestry and field sports which was established in 1850.
Randall Nicol, a partner in the business, said the company had looked at a different options for developing the hotel and surrounding area. "We are passionate about Ballogie and this part of Scotland and we want the new hotel to be a principal attraction for people in the north east, as well as providing a unique destination experience which will attract more visitors to Royal Deeside.
"Having commissioned two in-depth economic appraisals and held a public consultation to get local feedback, we decided the best option was to invest in the hotel to bring it up to a very good four-star standard, plus build a new conference and events centre, and a state of the art spa and leisure complex.
"We believe that this development will be unique in Scotland with its rural situation and its level of bedroom, spa and event facilities, coupled with an outstanding food and drink offering."
An informal bar-style area and a more formal 60-cover bistro will be at the heart of the hotel, while the events space will be able to host around 200 people for receptions or 150 people for weddings and, conferences .