In the UK now you cannot be refused services on the grounds of sexuality. Of course you might get a less than friendly service from some of the smaller private hotels etc. To be honest this being London I would doubt that most of the hotel staff would bat and eyelid if you were swinging naked from a chandelier.
As to the old gay hotels out in earls Court I would have always said steer a very wide path from them. They are nasty, over priced and grotty as all hell. So I would say that it really depends on where the Hustlaball is happening in London. If your mate wants to be close to the venue and or the tourist sights etc. So that and his budget should be really the only thing that should influence his choices.
Travelodge, Premier Inn. Express by Holiday Inn etc all have city centre establishments.