The former Potarch Hotel is to undergo a £7 million renovation with plans to include a 40-bedroom hotel, spa and conference and events centre.
Developers Ballogie Estate Enterprises will apply for planning permission in February next year, which if granted, could see 40 jobs created at the new facility during peak times.
Ballogie Estate hopes to see the new premisses open by Autumn 2015.
Randall Nicol, partner in Ballogie Estate Enterprises, said: “We looked at a number of 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.“
The events venue will be capable of hosting around 200 people for receptions or 150 people for weddings, conferences and other events.
Claire Bruce, Chair of Destination Management Organisation (DMO) Discover Royal Deeside and Cairngorms, said: “This development is very good news for Royal Deeside. There’ll be more jobs all year round and it will be heartening to have additional visitors to the area who can enjoy all the attractions and activities that we have on offer.”