It is interesting that the hotel is reimbursed at a low rate, but financially it is part of a much bigger picture.

There is always the "intangible" value for these hotels. That includes the value of a hotel being a part of the Marriott brand. Because of our loyalty to the brand, we never stay at another type when we are paying. Also, when staying on a reward, the hotel benefits financially in other ways such as people eating/drinking at the property.

Another benefit is the following situation: we are staying at the London County Hall on a 7 day award, but staying 8 nights and paying for one. Let's face it, if it wasn't beneficial for a property to be part of the Marriott brand, even with a low reimbursement award rate, they wouldn't do it.

It does put in to perspective why the properties designate a set number of rooms per property as available for rewards.

I wonder if it also makes sense when they upgrade their best customers to a better room they may be able to fill the "regular" room easier with a paying guest than if all they have is an upgraded room available to rent. Nice idea, huh?