Working with Inchmarlo Farms Ltd, Kirkwood Homes had reignited plans for the £100 million hotel and residential development near Banchory in a proposal of application notice (POAN) to Aberdeenshire Council last year.

Subsequent applications revised the residential element to include an extra ten homes, taking the overall provision on the site to 95.

Approving the proposals for the additional homes last week, councillors also agreed an amendment to the phasing which will allow 70 houses - 30 affordable units and 40 market sale units - to be built within the first phase of the development.

Councillors were told that the residential units are necessary to enable development to help finance the tourism element of the wider proposal, including the £26 million 5-star hotel.

Aberdeenshire Council said the revised proposal signalled significant progress in seeking to deliver the overall development package which had been envisaged and agreed at this location.

Talks are also at an advanced stage with a potential financial backer for the hotel development which is forecast to open by April 2024, it added.

In addition to hearing from the developer and landowner, the infrastructure services committee also heard from Banchory Community Council and a local resident – both raising concerns that the houses might be built but the hotel would not and any economic benefit to the area would be lost.

Mary Lennox from Banchory Community Council said: “What we fear is that, despite all the fine words, the housing will be built, the developer will walk away with the land value and there will be no hotel or resulted economic or employment benefit to the community.”

During the debate, some councillors shared those concerns and moved that the extant plans proceed unchanged – with the hotel being built before the houses.

However, others favoured the new approach saying there were solid, cogent reasons for the amendments and it was important to ensure the wider development was taken forward. After councillors voted 7-7, the chair gave his casting vote to support the recommendations.

Allan Rae, land director at Kirkwood Homes, said: “We are delighted that our proposals have been approved. We look forward to getting on site to start delivering the initial 70 new homes, the first 30 of which will be affordable.

“Importantly, the approval unlocks funding that crucially allows work to commence on the £30m Lucullan five-star hotel and spa.”