Whitbread's Premier Inn pulls out of Locog Olympic package agreement

15 April 2011 by
Whitbread's Premier Inn pulls out of Locog Olympic package agreement

Hoteliers that have provided rooms for the London 2012 Olympics at preferential rates have ripped up their agreements with organisers after their inclusion in dramatically marked up packages.

Whitbread has already withdrawn its Premier Inn rooms from use by third parties approved by London Organising Committee of the Olympic Games (LOCOG), and other hotel firms are expected to follow suit.

The move follows last month's news that Thomas Cook was selling rooms in packages at up to ten times the rates provided by hotels.

LOCOG secured almost 56,000 of the 114,000 rooms in London hotels at rates calculated at the average room rate achieved during 2007, topped up by inflation. Some of these have been passed on two third parties who are adding vast mark ups as part of hospitality packages.

Concerned that it appeared to be profiteering, Whitbread has withdrawn its permission to include hotel rooms in packages.

In a statement it said: "We have been disappointed to learn that some of the rooms we allocated to LOCOG have now been passed on to a third party who have significantly marked them up for onward sale.

"As the UK's biggest budget hotel chain we have a clear pricing policy which offers our customers great value for money. We do not intend to allow anyone to exploit our customers during the Olympics or any other major event, and we have asked LOCOG to honour our agreement and withdraw the rooms given to the third party."

The British Hospitality Association said it was now investigating and will meet with LOCOG to highlight the anger felt among hoteliers and attempt to find an agreement.

Hoteliers angry as 2012 rooms are sold on at huge mark-ups >>

Mayor slams hotel price hike for Olympics >>

New twist to Olympic room rate row >>

By James Stagg

E-mail your comments to James Stagg here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs
Looking for a new job? Find your next restaurant job here with Caterersearch.com jobs

Blogs on Caterersearch.com](http://www.caterersearch.com/blogs) Catch up with more news and gossip on all Caterer's blogs
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking