That truly is a problem for the programs, where people make a reservation in their name for the points/stay credit but someone else actually stays (and pays that first person outside the hotel transaction, or whatever). People do this to also 'transfer' prepaid noncancellable reservations (including Priceline) so its not too surprising that some hotels are cracking down.

It's too bad however. I've had similar situations (with SPG hotels) where I've checked in later and my wife (no status) checked in first. I just called ahead with her name and there was no problem, got the upgrade and she was even given the Plat Amenity card. So I'd say it should probably be ok but you never know...