PUBS and hotels company Punch Taverns has unveiled plans to invest more than £3 million in its Scottish estate during the next 12 months - a programme it believes will create about 250 jobs.

Punch, which emphasised its desire to capitalise on the strength of the tourism sector north of the Border, has 230 sites in Scotland, including 25 hotels.

The company said its planned £3m-plus investment in leased and tenanted sites would include development of hotels in the north of Scotland, the central belt and the Borders, along with a number of pub sites.

Punch said that half of the investment total would be spent on hotels, with developments planned in Inverness, Dornoch and Galashiels. It added that pubs within the key trading areas of Glasgow, Edinburgh, Dundee and Aberdeen would be a focus for investment.

Operations director Brian Davidson, said: “Tourism and the economy in Scotland are particularly buoyant and we have seen a growing demand for good quality hotel accommodation, coupled with traditional Scottish hospitality.

“Our hotels and pubs are all in prime locations and refurbishment schemes have been designed to make the most of the…heritage, whilst celebrating locally-sourced food and drink.”

Punch unveiled the Scottish investment plans as it announced a drop in overall pre-tax profits to £27.3m in the 28 weeks to March 5, from £30.4m in its previous first half. While noting the impact on earnings of a strategic disposal programme, it emphasised that the average profit per pub across its estate was up three per cent.

The company noted it had, over recent months, invested about £500,000 in developing the 16-bedroom Crown Hotel in Stornoway on Lewis and £1m in the 24-bedroom Portree Hotel on Skye. A Punch spokeswoman emphasised the new £3m-plus investment programme across the Scottish estate was in addition to these developments.

Punch said it was seeking publicans and hoteliers to run refurbished sites across Scotland.

In February, brewer Heineken unveiled plans to invest £2m in its Star Pubs & Bars operation in Scotland this year creating around an additional 144 jobs. Heineken’s investment is focused on increasing food sales.