Oh, its definitely a 'thing'. Its used selectively though. A well heeled doctor from town would have no problem renting a room in that hotel.
Its nice of you to try though. Some of the lower end brands (especially the pay by the week brands) might be more accommodating if they are available in the part of town you are looking to rent. We have placed homeless students in Value Place, Woodspring Suites, Extended Stay America.
Unfortunately, the points won't really work there. Good luck.