According to figures from PricewaterhouseCoopers (PwC), more than 4,300 new rooms could be built in 2011 - almost twice as many as in an ordinary year.
Even if not all of those planned go ahead, there are likely to be a significant number of bricklayers tools being put to work in the capital.
However, it is not only the 2012 Olympics driving the trend, but also the emergence from the recession.
PwC warns that focusing on the Olympics alone could prove short-sighted as it is a one-off event and may not create a sustainable increase in room bookings.
But with high-profile venues such as the Savoy among a two-year list of luxury hotels due to open in the capital, a more sustainable market could emerge at the top end.
London is also finding favour with business travellers as, in the recent Conde Nast Travel Awards 2010, the UK Business Hotel category top ten consisted solely of hotels in the city.
Posted by Charlie Parkin