20km away is not unreasonable as long as they paid for a taxi. Last time AA put us in Fairfield inn and we had to wait 90 minutes for a shuttle. I don't believe that just because I have that card I can expect that they will pay for the LAX Marriott or something.
Also if anyone is stuck at IST, most hotels are at least 20 minutes drive. The airline is not paying you a hotel that is next to a mall or a sight, it's for the destress pax to rest. So it's that guy going to check himself into the Ritz at Istanbul if AA or whoever put him into a hotel he doesn't like?
I hope people don't buy his story and expect the card will reimburse them.