The Royal Navy’s 12th Submarine Flotilla had it headquarters, HMS Varbel, located in the 88 rooms of the requisitioned Kyles Hydro Hotel, which overlooked Port Bannatyne. <br />This was the only British base for midget submarine and human torpedo training. <br />The Navy used the protection of the port and the secure waters of Loch Striven to the north for sea trials and training exercises. <br />The exercises mostly included beach reconnaissance training on Port Bannatyne as well as navigation and pilotage.
