So, that doesn't sound like such a bad deal to me. If you were earning the points on a stay at 30 points/dollar (regular earn + typical promotion bonus + Diamond bonus) you'd need to spend $733.
It sounds as if you have a very specific situation in mind, and very specific constraints (don't stay at Hilton much). So I'm going to be contrarian and say this is an exception, and one of the few times it might make sense to do this.