Scottish hotel group Crerar Hotels has secured £40 million of funding with HSBC UK to refinance nine hotels in Scotland and one in the Lake District, including Fonab Castle and Dunkeld House Hotel.

Owned by private funds managed by London-based investment manager Blantyre Capital, Crerar Hotels operates a collection of four- and five-star boutique hotels and spas in some of the most sought-after locations throughout Scotland – including the Isle of Mull, Balmoral, Loch Fyne and Glencoe.

The refinancing will support the company’s long-term growth ambitions. It will also be supplemented by additional, targeted investment from Blantyre funds for refurbishment and expansion.

Chris Liddiard, Relationship Director for Real Estate Finance at HSBC UK, said: “It has been a pleasure to work with Blantyre as they invest in upgrading the hotels, which are positioned in some of the most beautiful areas of Scotland.

“These upgrades are expected to draw in more visitors, and we are excited to be able to support the business through this significant period of growth.”

Johann Scheid, Investment Director at Blantyre, said: “This deal represents an exciting new chapter for Crerar Hotels. We thank HSBC UK for their support in enhancing the long-term growth prospects of the Company, and look forward to continuing to work together.”