London is set to benefit from a 27 per cent increase in the number of luxury hotel rooms in time for the 2012 Games, according to new research.

PricewaterhouseCoopers (PwC) has found that approximately 2,400 rooms in 18 hotels are currently either under construction or in the planning stage across the capital. The research also found that some operators looking to achieve higher profits are looking at a higher suite to room ratio.

PwC head of hotel research Liz Hall said: "Demand should strengthen as the Olympics near but hotels will have to be pro-active with their marketing." It was also found that, while some existing operators expect some impact on trading due to increased luxury supply, others see the new openings as creating a 'halo effect' in the capital.

Image: The Savoy's reopening has expanded the capital's luxury hotel offer