The hotels, which form part of the InterContinental Hotel Group, are currently undergoing a £600m relaunch.
The sponsorship will see the chain provide hotel services to the London Organising Committee of the Olympic Games and Paralympic Games (LOCOG) and aid in the planning and roll out of the Olympic Village in East London as the “official hotel services provider” to London 2012.
Holiday Inn joins companies including BP, British Airways, EDF Energy and Lloyds TSB as 2012 sponsors.
Lat month InterContinental Hotels Group, which also owns the Crowne Plaza chain, reported first quarter profits fell 44%. The hotel group has been hit hard by the global economic downturn although insists it is performing strongly in a challenging year for the industry.
Andy Cosslett, chief executive of IHG, says: “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. “