The British Hospitality Association (BHA) has backed down in
the dispute between LOCOG and the hotel chains threatening to pull their Olympic
A number of hoteliers are unhappy about rooms they
offered to LOCOG at preferential rates being sold on at up to ten times the
price by third party retailers, Thomas Cook and CoSport. These include
Whitbread, Starwood and Thistle, who had all threatened to tear up their
contracts if an agreement could not be reached.
The BHA stepped in, holding talks with LOCOG, but has now
agreed to take a back seat and allow the committee to resolve the disagreements
with the hotels directly.
A spokesman for the BHA said: “LOCOG is now in discussions
with individual hotel companies, who are resolving the issue on a case by case
basis. As a result, we have rather taken a back seat now that companies are
resolving the issue individually.”
It is rumoured that LOCOG has offered some hotel companies
compensation, although it would not confirm this and Whitbread, Starwood and
Thistle would only state they were ‘still in discussions’.
A Thistle spokesperson added: “Thistle Hotels continues its strong working
relationship with LOCOG and remains committed to the obligations defined within
the original contractual agreement.”