Maybe you are correct! I actually wind up paying cash for many foreign stays because I have leftover local currency and using it to pay for the stay is a better return rate than exchanging the money into another currency.

Once, at the KL Ren, there were people next to me looking to exchange dollars into the local currency. They heard me saying I would pay cash to get rid of the local currency so we did a little side deal without any fee included, but otherwise paying the hotel bill keeps me from adding to my drawer full of orphan currency.