Wow. what a terrible move by the hotel! I used to stay there every week. This was years ago. Carla in the lounge was awesome! And they were even somewhat accommodating to their regulars when the NFL lockout forced the cowboys to hold training camp there.
If I'm a hotel manager with low occupancy, I'm thinking that I should probably offer people that travel a lot some incentives to come stay at my place. Like, maybe lounge access or breakfast coupons? If you turn away the regulars, what are you left with?
An SPG sales rep once told me that with positive space, the hotel should be happy to get $50 a night for a room. Their marginal cost is essentially zero (a few minutes for housekeeping, some laundry). I can't fathom how shutting off benefits for frequent travelers is a good business decision