Perhaps Marriott loses money on government rates, but I thought it's often not available if occupancy is high.
Originally Posted by
nmpls
I don't think hotels are losing money on government rates unless it's a sell out during a time they can charge a premium like the pebble beach concours, the superbowl, or something.
Individual hotels are never obligated to offer government rate rooms, and some never do. This applies broadly to all hotel chains (Marriott, Hilton, Hyatt, etc.). There is no overarching contract between the US government and hotel chains for government rate rooms (like there is with the airlines for government rate flights).
Any reasonably competent hotel revenue manager should be able to make money from government rate rooms by simply offering them when they know they won't be full. That applies to government rate rooms offered for leisure travel as well.