Opposite experience: I have found that they always honor their "free night" guarantee.
Last May, I spent a week at a Ramada Inn in Deerfield Beach. I got the price from the Ramada website, found it cheaper by a few dollars at Expedia, sent in the electronic "claim form" and was given the first night free.
Ditto, same hotel, same story, in November.
I am going back to Deerfield Beach later this month. This time, I only needed a hotel for one night. The Ramada Inn website gave me an $80 price. Expedia had it for $72 and I sent in the claim form yesterday (Sunday). Today I got an e-mail telling me that my night will be free.
I expected that when I had my week-long stays but was surprised that they were so quick to give it to me on a one-night visit.