Coincidentally, we found a wallet with over $1,200 in cash. We actually drove to the address listed on the driver's license (3 miles from where the wallet was found), knocked on the door, and was informed that the person moved over a year ago.

I then proceeded to Google the individual, and based on the information in the wallet (it did not contain his own business card), determined a possible email address that would be of the person in question.

I emailed the individual, confirming his identity and indeed he lost his wallet, and arranged for him to pick it up.

While part of me wonders how many MR's that wallet would have paid for, the majority of me knows I did the right thing... even above and beyond by tracking the individual down.

Anyway, back to the original question... as long as you made a good faith effort in informing the hotel, the rest is up to them to retract or leave alone the points.

Now, in regards to churning credit cards and such, I believe they are completely unrelated in practice and ethics. While it may not be the way the program was intended, it is completely within a company's control to prevent abuse.