Obviously , or else there likely wouldn't be an issue with booking the award night. But I think you're missing the point entirely.

By that logic, all hotels could just make their hyatt daily rates have a 2-night minimum and no one could ever book a one-night award. Not saying this would ever happen, but a more realistic scenario would be a hotel doing this for any busy periods when a hotel is expecting higher than usual rates. Which is exactly what it seems like this hotel and the Hyatt Maui are doing.

According to Jeff's post in that prior thread, the underlying package or rate description shouldn't be an issue. If they are selling a standard room for cash (excluding guaranteed availbility of course) you should be able to book an award night.