The group, will provide “experienced personnel to assist in the planning and operation of the Athletes' Village”, London 2012 officials said.

Holiday Inn, along with other hotels in the IHG stable, will also provide accommodation and meeting rooms for London 2012.

There are 42 Holiday Inn hotels in London.

The company is the ninth to sign up as a domestic Tier Three sponsor - the lowest level of support under which a backer is able to use the Olympic logo in their advertising.

Half of the sum they are paying for sponsorship is expected to be provided as value in kind.

It means that London 2012 has now raised £500 million towards its sponsorship target of £750 million, part of a £2 billion budget needed to stage the Games.

Sebastian Coe, the chairman of London 2012, said: "Providing a smooth customer experience for athletes, spectators and dignitaries throughout their time at the Games can be a key challenge for any organising committee.

"For us to have Holiday Inn join our family provides us with another great pool of knowledge and skills to ensure that all of those attending the Games, whether from within the UK or from abroad, as competitors or spectators, will have an enjoyable and memorable experience.

"The global expertise of Holiday Inn in welcoming visitors and meeting customer needs will be vital between now and 2012”.

Andy Cosslett, the chief executive of IHG said: "With the £600 million relaunch of Holiday Inn well underway, being selected to welcome guests from LOCOG and its partner organisations to our hotels is perfect timing.

"Just like the world class sportsmen and women who will stay in the Athletes Village, we'll bring our own world class team to Stratford to make life as easy as possible for the athletes so they focus on the task in hand - competing and winning medals."

InterContinental Hotels, the world’s largest hotel group by the number of rooms, also owns the Crowne Plaza and Hotel Indigo chains.

Last month it reported that revenue per available room - its sector’s most closely watched measure of financial performance - fell 13.6 per cent in the first quarter of 2009. Operating profits from continuing operations fell by 44 per cent.

Shares in the FTSE 100 company, valued at £1.9 billion, have fallen 22 per cent on the year.

Holiday Inn joins eight other domestic Tier Three sponsors for the Games: Airwave, Atkins, Boston Consulting Group, Crystal CG, Freshfields Bruckhaus Deringer LLP, McCann Worldgroup, Populous and Trident.

Tier One sponsors are Adidas, BP, British Airways, BT, EDF Energy, Lloyds TSB and Nortel and Tier Two are Adecco, Cadbury and Deloitte.