Andreas Panayiotou’s Ability Group has bought Dunblane Hydro hotel in Perthshire as part of his move into hotel property.

The 206 bedroom hotel in the Perthshire Countryside has been sold by Stardon, a joint venture between Starwood Capital Europe and Scottish entrepreneur Maurice Taylor, to Ability.

Ability plans to invest £10m to upgrade the property to create a luxury spa and golf resort.

Ability plans to create a pan-European commercial property portfolio of hotels, offices and retail shopping centres targeted to grow to over €4bn (£2.8bn) by 2010.

Andreas Panayiotou said: ‘Our vision is to modernise, rebrand and reposition the hotel in the market. The hotel fits nicely with our portfolio of other quality hotel assets in the UK and Europe.’

Day to day management of the hotel will continue with Glasgow based Chardon Management.