Plans to refurbish Rothiemurchas Lodge near Aviemore will get a £250,000 boost in the Budget today.
Money raised from fines on banks will be used to completely refurbish the site for military veterans who want to enjoy respite in the shadow of the Cairngorm mountains.
The funding will also pay for the installation of fully adaptable suites for injured veterans.
The lodge provides a unique facility as it can also be used by army units for adventure training and as a holiday location.
Members of the Armed Forces have used it since the 1940s, and the lodge offers about 120 beds for service personnel, reservists and their families.
Danny Alexander, local MP and chief secretary to the Treasury, said: “The Cairngorms are one of the most beautiful areas in the world, and provide the perfect tranquil respite for our brave Armed Forces, veterans and their families.
“Rothiemurchas Lodge is a brilliant facility for providing affordable accommodation in such a stunning location.
“I’m delighted that this donation will allow them to install facilities for injured veterans, as well as refurbish to ensure that they can continue to provide a much-needed resource for our troops.
“This money comes from Libor fines on banks – we’ve taken around £450million from those who broke the rules and demonstrated terrible values, and used the funds to support good causes across the UK, from homes for disabled veterans to refurbishing troop facilities in Argyll and Bute.”