In the Navy, there is an expression, "You rate what you can get away with."

Perhaps this CEO of the business has a good relationship with the property, and they value his business.

Or perhaps the property management hopes that by bringing his subordinates into the lounge, they will be incentivized to stay there and possibly become elite members themselves.

If anyone is breaking the rules, it is the CEO, not the team members. So the latter shouldn't worry or push back against the CEO's invitations. If such leeway is abruptly terminated (or discovered) by the property, they could always bill charges to the CEO's room.