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If you're a confident, assertive cyclist it's the same as cycling in any other city really, just busier! If staying closer is an option it might not be a bad idea though, if you've got your bike with you anyway you could spend the time you would "commuting" exploring the more scenic parts of West London. Not all of the commute from east to west is particularly pleasant or scenic.
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Personally I find cycling in London better than cycling in most places in the UK. Slow traffic and lots of cyclists makes things a lot easier (if you steer clear of the HGVs and skip lorries).
But unless you have a good reason to stay near the Olympic Park I'd go somewhere more convenient. It wouldn't be my first choice of where to stay even if I wasn't working the other side of London.
@ltc @jj72
Cheers. Also forgot to mention I’ve never cycled in London before. Wondering if I should find a hotel that is closer…