Working in the hospitality industry and to answer the original question of the OP, yes; hotel employees can report guests. However, this is generally only done in extremely severe circumstances.

What does happen on a regular basis is that a note will be placed with your profile, which can be visible to all hotels within the same chain (This does depend on the system the hotel/chain uses). This note can contain pillow and linen preferences, if you like a slice of lime or lemon in your diet coke, had troubles during your stays, what those issues were specifically, investigation results as well as compensation to the guest. You can imagine that guests who have a long history of causing "trouble", will be looked at differently by the front desk agents, then guests who do not have such history. Granted, this is not the way it should be especially within the luxury hotel industry however it is human nature for this to happen.

There are however stronger methods then warning notes that hotels can implement: blacklisting from the hotel or the entire chain. Where I currently work only the General Manager (or his representative) and the Duty Manager have the authority to remove guests from the premises (either voluntarily or with police assistance) and "blacklist" a guest at the hotel. Should we feel the need to blacklist said person from the entire chain this needs to go through the Vice President of Ops as well as the CEO of the Hospitality Division (corporate) and should be backed-up with sufficient reasons.

Examples of cases where blacklisting occurred vary in degree of severity, some examples that I personally experienced (with different chains and different hotels) are:

* Guest (despite several warnings to temper his language) continuously uses extreme profane language to staff for no reason at all;

* After guests girlfriend turned down his marriage proposal and left the hotel, the villa where the guest was staying in was literally destroyed (think smashing windows with the TV, finding FF&E in the swimming pool) and was set on fire (half of the villa was destroyed). Guest then left the resort without settling his dues;

* Streaking (and filming it) during breakfast in a packed restaurant in a GCC country, one of the locals called the police who came to arrest them.


Please note that I do not work for Starwood, nor did these examples happen within Starwood, or any one single chain for that matter. These are examples which have happened during one point in my career and not recent.