This is what you need to look at:

https://www.marriott.com/rewards/usepoints/morepack.mi

The OP's calculations are right, but you can't equate the hotel portion to miles at the same rates you did, since you can't get that kind of conversion rate from a straight points transfer.

I think you need to look at it this way:

- Assume that you are getting fair value for 115k points, as that is the normal going rate for 7 nights at a Cat 5 hotel. Ignore that portion.
- That leaves you with 120k points, which we will round down to the same 7 night Cat 5 hotel reward if redeemed for a hotel reward.
- As best I can tell, a Cat 5 hotel is probably, at most, a $300 per night hotel room. So, this values the 120k points at a max of $2100 for a hotel redemption.

I think the 300k miles easily eclipses the equivalent value of the points if used for a hotel reward, so I say go for it.

Now, if you were just transfering 120k Marriott points, not as part of the travel package, then I think the value erodes precipitously. Even after the bonus miles, you should only earn 60k miles. Even at $.02 per mile, I would think you are better off using the same number of points for a hotel stay.