Don't think they win when they lose business that they could have had. I generally have plenty of stays in a year (even as a LTP). So the only issue is whether or not they get these extra one nighters. Based on their policy they don't so they lose those. The policy doesn't particularly bother me one way or the other given my status, and I generally feel well treated by Starwood. They just lose a few stays for no particular reason that I can understand - that's their choice in writing the T&Cs but it doesn't seem to me that there would be any real downside to them to allow these types of stays in the program.