I don't think this is aimed at points/miles collectors.
I don't think this is aimed at "traditional" (read: expense account) business travelers.
Millennials have been generally doing with less "stuff" than previous generations - used to smaller and more spartan spaces as they re-urbanize.
PRICE is going to be a big factor - press release said $90-100 but not enough specificity to really nail down comps. It did mention some cities but again, not enough detail. If it's $100/night in downtown Chicago in summer, they're gonna get takers.
People who read FT and chase miles/points and "aspirational" redemptions are who we personally surround ourselves with, but it's a big world out there and there is money to be made off of people not like us - people who buy on price and location and don't worry about status/points; they just put the money in their pocket. Look at WN/NK/Asian ULCCs, look at airbnb (how many listings are for single rooms? - Lots), look at the OTAs, etc.