"And" as well as "&" are "stop words" and are not indexed my most, if not all SE's anyway, so it really doesn't matter.
Considering that the ampersand is especially common in query strings, you can understand why it's not given any weight in terms of relevance.
For example, look at the following URL:
In the above example, you can see that stripping out the ampersands and replacing them with spaces, which is what the SE's do, would make this page somewhat relevant for the search phrase "0012345 large blue widget".
Assuming that you can apply this premise to your titles, links and content, you be much better off to just optimize for "London Hotels" since most people would use that as the basis for their search anyway.