Originally Posted by
matrixwalker2012
makes sense since if the hotel wasn’t highly occupied, the room would’ve been unsold and generated no revenue, so the hotel gets something nominal for their troubles in hosting the reward member.
if the hotel was nearly full, then the room likely would’ve been sold for money, so it displaces cash revenue. Thus, Hilton Corp reimburses the hotel for the foregone revenue.
Yes, what you say has been my understanding for many years. My post was in response to @
patmcpsu, who wrote that the reimbursement rate doesn't depend on occupancy (but only on hotel brand, nothing else) yet cited a link that confirms that it does.