<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by msrohud:
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?</font>
You had it until your last thought....yes it does make since to upgrade their best customers exactly for that reason, because they are the "Best" customers (remember though the upgrades are on a space available basis too)....it's just another way to build brand loyalty...how many Plats/Golds would stop staying at Marriott's if they didn't get an upgrade (I'm willing to bet alot)