Image: The spa hotel will be in the centre of Bath

Malaysia-based YTL Hotels has secured a £20m (US$31.6m, EUR24.8m) development loan from the Royal Bank of Scotland (RBS) towards the construction of a new hotel and thermal spa in Bath, UK.

RBS' Consumer Industries Team has provided the funding, which will support the group's acquisition and redevelopment of three buildings in the heart of the historic spa city.

The Gainsborough Hotel and Spa will be housed in a Grade II-listed building and will become one of the UK's first to use natural thermal water when it opens in 2014.

YTL Hotels - the hospitality arm of YTL Corporation Berhad - took over the development of the new hotel and thermal spa from Bath Hotel and Spa Limited late last year.

Dato Mark Yeoh Seok Kah, executive director of YTL Hotels said: "[The project] will capitalise on one of the city's most unique attractions - the naturally occurring thermal spring waters - that have attracted tourists and visitors to the city for generations."

RBS head of consumer industries Neil Parry added: "The YTL team, supported by their sister company, Wessex Water, have a unique opportunity to create a distinctive hotel in a sought after location."

Details: www.ytlhotels.com