But just how bad are some of the LQ properties? From the way I've heard some described, Hilton could be inheriting a liability. And certainly they wouldn't want to drag their whole program down to the lowest common denominator - a possibility as people are generally program-loyal, rather than brand-loyal.
I'm not saying what you suggest isn't doable and doesn't make sense from a business-plan perspective; your points are well articulated and well-taken. I'm just thinking they'd have to be careful. Making a run at the very bottom of the barrel is a risky strategy and they have to make sure not to lose more than they gain.