Originally Posted by Counsellor

Rewards nights (i.e., from points, not paid) normally do not count towards promotions.

In answer to your other question, if you can get Gold for two years by staying 12 nights, and plan to do traveling (particularly on your own dime), I'd say Gold is definitely worth it. You get upgrades to the Concierge Lounge (or Club Lounge) in most full service properties, and that means free breakfast and usually heavy finger food or buffet for evening meal as well.

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MM=> UA 102%, AA 99.8%