There is another program (besides FPLP), called GSA Value Lodging, which has many more properties (including one in Monterey, Hyatt Regency).

That said, you make a very good point about the convenience factor and an occasional necessity to have a rental car (or take a cab to and from your work site) thus eliminating any savings by making you stay at a contract property. But... government rarely (if ever) operates based on logic...

And no, I'm not exactly a government employee (somewhat of a state employee), but many of my projects are paid for by the feds, thus requiring my travel arrangements to be governed by the same federal per diem limits. And yes, I've encountered plenty of difficulties (e.g., some hotels allow federal government contractors to stay on government rates, some don't), but I always end up finding a property (usually a member of either Hilton, or Starwood, or Marriott family) to stay at and be within the limits. On most occasions it's not as nice as I'd like it to be (e.g., Hampton Inn instead of Hilton, or Fairfield Inn instead of Marriott), but when traveling on taxpayer's money, that's something to be expected, IMHO. I'd love to be able to stay at the St. Regis when I come to DC, but its goverment rate is waaaaay above federal per diem...