Plans for the £7.4m refurbishment of two Argyll hotels - the Ugadale Hotel in Machrihanish and the Royal Hotel in Campbeltown - have received a £1.2m boost from Highlands and Islands Enterprise (HIE).

US-based Southworth Development is behind the scheme through its Kintyre Development Company subsidiary, which also owns the new Machrihanish Dunes Golf Club - an 18-hole links course opened in July. The company now aims to refurbish the hotels in order to establish the area as an international golfing destination, complementing Machrihanish Dunes and the existing 130-year-old Machrihanish Golf Club located nearby.

Campbeltown's Royal Hotel will be completely revamped in order to provide 23 bedrooms - including three suites - an oyster and seafood restaurant and a bar. The Ugadale Hotel in Machrihanish will boast 21 bedrooms, a seafood restaurant and a malt whisky bar. Sandy Brady, HIE's acting chief executive, said: "This approval forms a key part of delivering on the Kintyre Action Plan which is being driven forward by the partnership of public agencies in Argyll.

"The hotels will both add significant value to the area, with the proximity of two golf courses of such a high standard attracting golf tourists from around the world." David DeSmith, director of marketing for Southworth Development, added: "These hotels are an integral part of our aim to make Machrihanish a must-visit golf destination for both national and international visitors. We aim to provide world-class accommodation which will be worthy of Kintyre, one of the most beautiful areas in the world."

The refurbishment of both hotels is expected to be completed by spring 2011.