Look we all can agree that is an absolute bs response and is functionally void of any actual reasoning or justification. In this situation, were I presented with such a ludicrous (LUDICROUS) argument, I would tell the hotel that I want them to detail to me what rooms are "better and best" when compared to others and explain the criteria used to determine that. Per the terms they must still determine at their discretion what is the best room, which still technically means they have to have SOME criteria and it can't just change from minute to minute. If you are going to be intellectually deceptive, then I would press them on it within the bounds of their own construct.

It's all very odd because as I recall this hotel has always been known for treating elite guests well.