That's how you lose my business. If you want to play games with me I'll go elsewhere.

Similar example--was staying in a suite for one night (and entitled to an upgrade if available) and the higher was available (it was the next higher and the best suite in the hotel). Room was booked for 7 nights after my night, so it was empty for the night. There was no way, at check in that day, on a weekday, that the room would be taken for exactly one night on that night. Hotel insisted that they can't upgrade me.

Airlines play that trick w me too. Was on the waitlist for an upgrade to SQ first and at take off 2 of the 4 seats were empty. They'd rather let the seat go empty than let someone who paid $8k for a J ticket and offered a stupid amount of miles to upgrade take it.

Short vs. long term decisions.

FYI Firmdale Hotels are the worst at this. Just naming and shaming. Absolutely no value for long standing clients, which probably explains why they have no loyalty program.