How did the idea of "fraud" creep up in the first place?
Re-read the quote that I selected. I was referring specifically to the Rewards Club aspect of the conversation.
It's fraud if you try to get elite-level benefits off of someone who is not staying at the hotel. It's also fraud to try to get night/stay credit for someone who is not staying at the hotel.
I don't think calling the police to have me arrested for fraud will cross his mind.
I never mentioned police. I merely pointed out that attempts to get benefits or night/stay credits for a guest not staying in the room might be considered fraud by IHG. And, there are potential consequences, if caught.
If you're referring solely to the use of the room, I agree that the hotel will not care. In fact, with the exception of very high-demand nights where they might be able to re-sell a room, a hotel would rather have the reservation used than to go empty. Empty rooms don't generate ancillary revenue.