Here is the update.

Since I had my business class ticket booked via American Airlines using my miles, both American and Gulf told me that they do not provide a layover hotel for mileage tickets. American used to provide a letter to Gulf Air a few years ago which would allow for a layover hotel.

After arriving into Bahrain I decided to give it a shot and went up to the transfer desk requesting a hotel. To my surprise they provided me with a hotel (Golden Tulip Bahrain), food coupons, transportation and the visa fees was waived. The agent did not ask for any information besides the connecting ticket.

I don't know if I was lucky or the agent had no clue what he was doing.