A Scottish hotel group has secured £6 million funding ahead of what is expected to be a busy period for sector players north of the Border.

RAD Hotel agreed a funding deal from Santander Corporate Banking that will support continued expansion by the group.

The package includes a development loan that RAD will use to extend the Shawlands Park Hotel in South Lanarkshire, which it acquired last year. Run by Robert and Vivien Kyle, the company intends to build a new restaurant at the hotel.

The package also includes working capital facilities for the group, which owns three hotels in Ayrshire. These include the Lochside Hotel & Spa near New Cumnock.

The funding package has been arranged for RAD by Christie Finance at a time when the hotel sector in Scotland appears to be well placed to benefit from the upturn in the economy.

After a long period in which consumer and business spending has been under pressure, growth in the economy is likely to encourage both groups to spend more freely.

Craig Dickson, associate director at Christie Finance, said: "The Scottish hotel market, in particular Aberdeen and Inverness, appears to be performing well when it is compared to the rest of the UK with occupancy and average room rate ahead year on year so far in 2013.

"2014 is also shaping up well with the Commonwealth Games, The Ryder Cup and The Homecoming all likely to drive occupancy forward."

Mr Dickson said a number of hotel groups are showing confidence in the prospects for the Scottish market by developing new facilities.

These include a Malmaison hotel in Dundee and De Vere villages in Glasgow, Edinburgh and Aberdeen.

There are also signs that the sector is attracting renewed attention from newcomers.

"Whilst financing for hotels currently remains fickle unless the borrower is an experienced operator or hotel management professional, we are beginning to see some early signs that the lifestyle hotel operator is gradually returning to the sector," said Mr Dickson.

The Kyles moved into the hotel and pubs trade in 1991 after working in hairdressing.