Originally Posted by peteropny

They do want to discourage the use of the the Diamond Guarantee since the likelihod of the property having to "walk" another guest at their expense is pretty high. In your example, if you invoked the guarantee paying the $655 / night, the HR is likely to have to walk another guest to another property (probably the PH paying the going rate for that property $325ish). This nets them only $325ish for your room/stay. In this example, the city obviously isn't sold out, if it was, the rate they'd have to pay for a walk could be a lot higher.