London hotel rates have seen a significant drop during the Olympic fortnight as hoteliers priced themselves out of the market, according to hotel portal HRS. It found that since the end of June, prices have decreased by an average of 32 per cent, with the average room price down from £164 to £112.

Earlier this month, online booking site Hotels.com had reported that rates had fallen around 25 per cent, with some bargain rates as low as £59 available.

Jon West, managing director HRS UK & Ireland, said: “After the predictions of astronomical hotel prices, hotels realised that they had priced visitors wanting to come to London for the Olympics out of the market."

Tripadvisor’s latest survey of hoteliers – of which 2,500 respondents were from the UK – found that more than half (58 per cent) of those who replied said the Olympics would have no lasting effect on their business. One hotelier cited “the negative impact of the Olympic games” as this year’s worst surprise for business, while another said that the “Olympics has been a non event for occupancy”.