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Potakas – I have used the Hilton at LGW many times and even though I always fly out of North terminal the transfer time is quite short. The Hilton does also have some good rates even in holiday times (they always quote exVAT so add 20%).

As Charles points out there are some other hotels, such as the Ashdown or Copthorne which offer nice location but at the cost of an expensive taxi ride.