I've been staying at Sheraton Tribeca for the past few months instead of the Four Points in Soho for work.

Last time I stayed there (few weeks ago) they charged my credit card on the day of arrival and when I asked front desk rep he specifically said it was because they were sold out, and if my credit card was declined they would have given the room away. So the hotel is def. still doing this.

Also, this happened to me at Four Points in Soho once - my credit card was invalid (i think it expired) and they gave my reservation away after trying to charge it the day of my arrival.