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According to the contract, the two hotels will not only provide accommodations for the Olympic Family, but also serve as the headquarters and command centre of the IOC during the Beijing Games.

The Olympic Family officials come from the IOC, all the International Sports Federations, the national Olympic committees, the Games organizing committees and the Olympic sponsors.

"During the Beijing Games, the two hotels will receive main members of the Olympic Family, representing about 1,000 guests from outside Beijing," said Xiang Ping, vice director of BOCOG Games Services Department.

Officials from Beijing Hotel said that during the Games, the two hotels would not be open to the public.

Before signing the contract with the two hotels, BOCOG inspected and evaluated about 30 five-star hotels in Beijing. Beijing Hotel and the Grand Hotel Beijing walked away with the contract in recognition of their facilities, convenient location and services.

Beijing Hotel is one of the most distinguished addresses in China's capital city and has played a key role in the city's history since 1900.

Located on Chang An Avenue, the hotel is within walking distance of the Forbidden City, Tian'anmen Square and other major sights and is adjacent to the shopping area of Wangfujing Street.

The hotel offers 700 rooms and suites in four interconnected buildings.

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The Grand Hotel Beijing is located just to the west of Beijing Hotel. It also sits next to the Forbidden City and Tian'anmen Square and faces the Chang An Avenue.

The two hotels have already received many senior officials from IOC, such as Juan Antonio Samaranch, the former IOC president, Jacques Rogge, the current IOC president, and Hein Verbruggen, chairman of IOC Coordination Commission of the Beijing Games.

In order to provide adequate services to the Olympics guests, a series of training programmes that will include information about the Olympics will be held from next year.

BOCOG has signed services contracts with 112 hotels in Beijing, including 38 five-star, 40 four-star and 34 three-star hotels.

Together with the Olympic Village, the Athletes' Village and the Media Village, these hotels will accommodate 50,000 accredited athletes, journalists, officials and sponsors.

Beijing Hotel and the Grand Hotel Beijing are among the first group to sign lodging agreements with BOCOG.

As promised by BOCOG in June, Olympics guests will pay less for their rooms than did participants at Athens in 2004.

The average price for a five-star hotel room will be US$353, while rates at four-star and three-star hotels will be US$272 and US$176, respectively. This compares to prices of around 500 euros (US$628.9) for a five-star room during the 2004 Athens Olympics.