While you are probably correct about both points, my go-to example on this has always been the Addison TX Marriott. It's location is near many businesses, so it commands about $300/weeknight without anything special happening in the area. Nobody wants to vacation in Addison, though, so it is a Cat 3, which is quite low for a very nice Marriott in a major metro area. (Dallas)

Fun Fact: Addison claims to have the most restaurants per capita of any North American city. While other cities make this claim, the facts that very few people actually live in Addison, so many businesses are located in Addison and at one point most of the bigger cities in the Metroplex were dry, it's conceivable.