Originally Posted by Mile High Club

They're hoping this gets picked up by the wire services and this gets them free publicity. They may only be able to convert 0.1% of free riders to regular pricing, but they will get free media exposure and they've determined it's worth the room giveaway. Besides, the room they are giving has a low COGS (ie cost to them) if it is not rented. So, assuming the room will be empty, what is the loss they incur if they give it away? Housekeeping and laundering costs? Wear and tear? Utilities? All these are less than the $20. The fixed costs (debt service, taxes, etc) don't go up if they give you the room for $20.