You are missing something... (I'm not saying that to be argumentative or dismissive)

I don't doubt that many hotel choices are made due to location, but it is completely impossible for Hilton to have precisely the perfect location in every single place that a traveller visits. So you don't choose to be loyal TO A CHAIN based on location, you choose based on other factors. And if you choose Hilton Honors based on the location of one or two specific hotels, then you are indeed missing something...