I have no hesitation about booking GOH award nights for various acquaintances, but I would only make the booking using a bank card from the acquaintances checking in for the reservations in their names; and I would make sure they know there is a financial risk if not cancelling the reservation in time or no-showing.
A “free night” at Hyatt can cost the bank card on file hundreds of dollars (or even more) if failing to cancel and/or show up on time.