IMHO, I haven't found it to be true for the most part. I've found many hotels to be comparably priced to Amex FHR/THC although the selection of hotels may not be as extensive and it also doesn't have the guaranteed late checkout.

Other than these 2 downsides, if you find a hotel that works for you, you can just charge $250 to the card to get the credit and cover the remaining with points at a value of 2 cpp which is far superior to what Amex offers you which is 1 cpp FHR or 0.67 cpp THC.