Olympics to send hotel prices soaring

Hotel room prices are expected to soar to unprecedented heights for the 2012 Olympics.

But demand will drop by 80 per cent straight after the Games, a study claims. The Olympics committee has already booked out 50,000 rooms for officials, dignitaries and staff.

The study, by Rubicon, was based on findings from the winter Olympics in Vancouver. It warned that hotels that raise their prices should be prepared for tourists after the Games not wanting to pay high rates.

Andy Storey, of Rubicon, said: "Hotels should be mindful of losing the revenue they make during the Olympics."