+1 - This is a good way for both the employer and employee to wind up in a messy tax audit.

By the time transactions such as this are properly documented and accounted for as exception items, it will cost the average employer more than they save on the cash outlay for the room.

At a minimum, I wouldn't do this without express written permission laying out exactly what is reimbursed and how.

But, remember, if you don't "spend" cash, what you receive from your employer is not a reimbursement, but taxable income and the employer needs to issue a supplemental W2 for it and you need to report that income.