CELEBRITY entrepreneur Duncan Bannatyne has embarked on a £5m expansion of his North-East based company’s hotel and spa operations.

It forms the first part of a £15m investment programme by the Darlington based Bannatyne Group during 2010-11.

So far, the company has bought the Charlton House Spa Hotel, in Somerset, and is due to start developing three new spas in the south.

The company has also recently invested more than £300,000 in its spas in Inverness and Chafford Hundred, in Essex, which has created a wider range of services and generated 14 jobs.

Mr Bannatyne said: “The performances of all our businesses have remained strong during the recession because people are not compromising on their health and wellbeing or denying themselves UK hotel breaks.

“We are now in a position to grow the business organically and through acquisition if the opportunities are a good fit for the group.

“The spa business has been an area of real growth for the group.

“We have indentified a number of our health clubs that will benefit from the addition of a spa, which will drive the trend for wellbeing as people focus their healthy lifestyles around a strong blend of exercise, relaxation and rejuvenation.”

The 26-bedroom Charlton House Spa Hotel in Shepton Mallet, already has a spa, but Mr Bannatyne is planning to extend the hotel to increase the number of spa treatment rooms and introduce a large fitness area.

After securing planning permissions, the group will also begin the development of two spas at its health clubs in Banbury, Oxfordshire, and Broadstairs, in Kent, which will expand its UK portfolio of Bannatyne Spas to 30.

A third spa location has been identified at the group’s health club in Shrewsbury, but is still in the early stages.

Each spa will create up to eight jobs.