I had a chat with one of the founders a while back. He said that hotels generally do not care if the room is switched as long as they are getting their money. He said he's never had a problem.

Their entire business model is based on the assumption that you can switch names. If that's not the case, seems like they were doomed from the start.

I can't say I've ever used them for either buying or selling. But if you're selling and are going to lose out on a reservation anyway, I can't see how it would hurt.