The Craigard House Hotel in Campbeltown is to be upgraded with the aid of a £92,500 grant from Highlands and Islands Enterprise (HIE) towards the business's £375,000 investment.

This will allow for the development of a new 64 cover glazed restaurant extension with panoramic views over Campbeltown Loch and improvements to the public and kitchen areas.

The building is a former maternity hospital which was rescued 11 years ago from near dereliction by the current owners, Roger Clark and Lori Smith who form the Craigard Partnership. Since then, the business has expanded from four bedrooms to 12 and developed its reputation for providing a quality dining experience. Increased demand for the restaurant, together with the need to upgrade facilities to meet four star status, has resulted in the current investment. Plans include the use of green technology and the business expects to achieve a Green Tourism Award.

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A spokesman for the Craigard Partnership said: "We are delighted and very grateful to acknowledge the assistance of HIE in awarding us a grant to improve facilities for the disabled, washroom, public and dining facilities of Craigard House Hotel.

"A new glazed restaurant extension, approved by Historic Scotland, will offer guests unrivalled views over Campbeltown Loch; while the extensive kitchen refurbishment will provide more scope for the talents of chef Joanne Baird and her team. These environmentally friendly and financially prudent improvements, including a ground source heat pump system, are a vital step to further future expansion in bedrooms and guest facilities."

Sam Ford, business development manager for HIE said: "The increase in high quality restaurant provision will attract additional business to the hotel, from both the business and leisure markets."

The Kintyre Peninsula attracts tourists for a variety of reasons. The renowned Machrihanish and Dunaverty golf courses attract large numbers of golfers. The Kintyre Way draws walking enthusiasts while distilleries in Campbeltown and Islay are popular with a growing number of 'whisky tourists'

(GK/JM)