De Vere has announced plans to develop 96 units, a spa and championship golf course near its Cameron House Hotel on the banks of Loch Lomond.
The company says up to a third of its luxury hotels might be sold if they cannot be brought up to scratch.
It will place more emphasis in future on the Village chain of leisure centre hotels which could be taken national.
Another five sites will come on stream by the end of next year.
Carl Leaver, chief executive, rejected a call by Guinness Peat Group to break the company up. Its Greens fitness club arm will probably be sold when the market improves.
References: Financial Times 04/12/03 page 28, The Times 04/12/03 page 28 (Need to know), page 30 (Tempus), page 35, The Daily Telegraph 04/12/03 page 37, page 38 (Questor), The Independent 04/12/03 page 27 (Broad
