Hyatt franchise employees have told me that they get paid vacation after working for a year, which is why (they say) some employees will quit shortly after working for a year.

I've also had discussions with lounge attendants about where would be good places to go for some free nights, so the benefit doesn't seem to apply only for executives.

IIRC Starwood set employee rates to approximate the hotel's marginal cost of having the room occupied: housekeeping, heat/AC, electric, water, etc. Back then it was in the $30-40 range for many Sheratons and Westins. I don't think I ever heard whether there were inventory controls, although surely some dates would be blocked (around big special events, etc. or maybe even high season in some resort areas).