SPG: I pay 10,000 SPG points, SPG pays hotel $55.00 USD
I'm sure the relationship between SPG and Starwood Hotels evolves around lots of give and take. I imagine both SPG and Starwood Hotels bring something to the table. But, boy, was I surprised to see on my Folio that my 10,000 SPG Point (hotel) redemption, got the hotel $55.00 from SPG.
Now I understand why so many hotels have tried to manipulate Starwood's promise of no capacity controls on standard guest rooms, by adding an upgraded lamp and couch, and calling the room a Deluxe Room, so that the Deluxe Rooms are outside of the hotel's complement of standard guest rooms. The last place that I can remember seeing a hotel push this scheme to the limit, was the Sheraton hotel in Parsippany, New Jersey.