An investment of over £300,000 will create Stornoway's only four star hotel and will result in the creation of at least 10 full-time jobs. Cala Hotels, owners of the Caberfeidh Hotel, are about to undertake a major refurbishment programme to boost the hotel's current three star rating.

Western Isles Enterprise (WIE) has committed £128,800 to the project with £51,500 coming from the HIE Standards programme - a European-funded initiative which provides financial assistance to accommodation providers for investment in the upgrade of their premises in a bid to attract and meet the needs of today's discerning travellers.

Operations manager at the Caberfeidh Hotel, Frank McGonigal said: "Our aim is to move into the four star business and lesire market, which is largely untapped in our area."

Among the work to be undertaken at the Caberfeidh is the upgrade of all 40 bedrooms and the refurbishment of the hotel's function and conference facilities. These improvements will be complimented by enhanced standards of service which will mean the hotel boosting the number of people it employs to over 100.

WIE have also awarded the owners of the Caberfeidh Hotel a marketing grant worth £9,000 to help them promote the new look premises. Marketing activities will include attendance at various tourism trade events, direct mail, holiday packages, advertising and a revamped website.

Donnie Ross, group general manager for Cala Hotels said: "This is a big step forward in further developing our services and facilities for locals and visitors alike."

WIE chief executive Donnie MacAulay said: "Enhancing the quality of local tourism accommodation is a priority for WIE and is complemented by investment in marketing and opportunities for improved service through WIE's Tourism Training programme.

"By investing in projects such as the upgrade of the Caberfeidh Hotel, we can help to improve the tourism product which in turn, will make a substantial contribution to the economy of the Western Isles."

Tourism is worth £33 million to the Western Isles economy according to a recent survey commissioned by WIE, Comhairle nan Eilean Siar and the Western Isles Tourist Board. The research also highlighted the importance of business tourism, representing 18 per cent of all visitors.