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Gleneagles is to invest £18m in improvements to its luxury Perthshire hotel, in preparation for hosting the Ryder Cup in 2014, but has dropped plans for a £100m project to add 600 acres to its grounds.

Gleneagles is hoping to start work next year on the £100m expansion of its Perthshire hotel complex from 850 to 1,450 acres, including a luxury spa and a village of holiday homes.

Gleneagles is planning a £300m investment in the expansion of its golf resort, including a new five-star hotel, luxury homes and two additional golf courses, and the project is being backed by Dubai-based Ochil Developments.