Hoteliers expect to profit from the Olympic Games and have dismissed fears that a flurry of new hotels would create an oversupply of bedrooms in London.
Bid sponsors Radisson Edwardian and Hilton International said they were thrilled with the win.
A spokesman for Hilton UK and Ireland said: "Anything that is good for London is good for Hilton. We expect many tourists will take the opportunity to stay in the UK longer, visiting other parts of the country outside London."
Radisson Edwardian's partnership manager Nicky Wright was equally upbeat. "We think the decision is fantastic and will bring huge benefits to London and the UK, with rowing at Windsor and sailing at Weymouth."
The bid team has already signed up 30,000 bedrooms at a guaranteed "fair price" for 2012, and hoteliers played down any fears of oversupply in the capital.
Rene Angoujard, general manager of the Novotel London West, said: "Oversupply will not be a problem, as the Olympics is only one side of the story, and London is a booming city that can absorb future developments."
Hotel pr operty agents believe the level of feverish hotel development that accompanied the Sydney and Barcelona Olympics is unlikely, as London already has sufficient hotel stock.
A spokesman for property agent Jones Lang LaSalle Hotels said: "Now that London has been selected as the 2012 Olympic city there will be a potential increase in demand and infrastructure which can only underpin the city as one of the world's leading hotel investment markets."
Visit London's communications director Ken Kelling said: "The decision sends out a clear message that there is faith in London to organise the world's largest sporting event."
Visit London predicts year-on-year growth for the hotel industry leading up to 2012 and said stronger ties with Beijing - the next host city - would boost tourism further.