They're actually within their rights with Pinniped's #3 above: T&C #11 (2005) or #12 (2006) says, "...at the hotel's current exchange rate."

On Sep. 7--9 I just used a PP at the Ren. Stanford Court in San Fran. for which I got $168.26. On Sep. 9 I drove to the Marriott Rancho Cordova near Sacramento, where the noob receptionist called the more experienced one over. They don't have forex service there, so I taught her to please call Marriott HQ &or go to oanda.com for the rate. I got $184 ^ !

However, not to know that a Pound, a Dollar, & a Euro are 3 different things is inexcusable. I wonder if any hotel would mistake 100 Mex. Pesos or 100 Yen for 100 USD ?!

BTW, Sonofzeus, yes, the value of the dollar did dive/pound did spike after Katrina & her impact on oil, but has since recovered to Aug. levels.