Hyatt Gold Passport - PLT/DIA Guaranteed Availability Rates

How does Hyatt come up with the rates for the rooms if all the hotel is sold out and you have one of these "Guar Available" rates? Are they always extremely high compared to a normal daily rate?

Based on the rates I've seen, they must use the crazy maximum room rates posted on the back of the hotel door.

I also wonder how many of such rooms they set aside for Elite members before falling back on the "extraordinary room demand" exclusion. I often find rooms are sold out at some properties, even when logged in as a Diamond. It would seem to me that the times you would want to avail yourself of this benefit would be when room demand is extraordinary; otherwise, you could probably find a room, even if it was not at a Hyatt!

Rack Rates are the standard base all hotel chains use, and then discount down from those. Just like airlines have their base Y fare, and then a slew of discounted economy fares from this. When all the space is sold out, be it on the airplane or in the hotel, to honour a top-tier elite access to a room, or seat, charging that "full" rate is the norm...and realistic.