Cotton is the chief executive of the British Hospitality Association and his appointment was officially announced at the group's first meeting of the New Year.
His remit will include helping to develop the Visit London initiative, which was established last September with the support of Mayor of London Boris Johnson, his economic director of policy Anthony Browne and director of marketing Daniel Ritterband.
The group's objectives for the year ahead were also outlined at the meeting. These will include coordinating a city communications programme to strengthen the links between major event organisers and London public suppliers such as TFL.
Ritterband said: "Attracting conferences, congresses and all forms of business tourism is incredibly important for the London economy, and the Mayor is keen that everything is done to strengthen the capital's offer as the world's greatest business destination."
Visit London director of business tourism Tracy Halliwell added: "Visit London is determined that this group is one which makes real and valuable changes to London's business tourism offer."
The LBTG will meet again in April 2010.