As others have pointed out, pricing reflects supply and demand. As a customer, one may not be aware of the reason a lower quality option may cost more than a higher end property. On my last trip to Japan, the St. Regis in Osaka was priced less than some lower category MPG hotels.

Things like proximity to an event will obviously influence prices. When one of my children was competing at a national championship, the hotels closest to the venue were understandably more expensive than those that were farther away. The group rate for the Sheraton, which wasn't even that close to the venue, was about $50 more per night than the group rate for the Four Seasons. We stayed at the Four Seasons, which was about a mile away farther away, and used the free (except for tips) car service for the entire competition.