I see your point about overcrowding, but if you're already paying $150 or $100 for Ambassador or RA status, it seems like you shouldn't have to pay for lounge access as well. How many people actually earn RA status? If it's something you have to be invited to rather than earn through stays or pay for outright, I doubt the lounge would be "bursting at the seams."

Personally, I'd think the hotel would be smarter to keep it full than empty. After all, isn't that fairly valuable real estate that's sitting empty? (similar in value to those empty first class seats). I wonder how many people that are not RA actually pay $60/day for access? If there really are a number of people that would pay that, then their idea isn't so bad. But if it stays empty, then (IMHO) it's not so great.

I guess the situation similar to airlines, in that it's the business decision that's made in how they allocate their space. If the hotel's not full, and the suites (or lounge) are sitting empty, doesn't it make sense to upgrade a guest (based on whatever status they have) to a suite (or grant lounge access)? I guess theoretically someone could come later that night asking for the presidential suite (or a truckload of people could come at the last minute, all forking over the $60), but I wonder how often that actually happens.

And the bonus for the hotel is that if they give someone a free upgrade to a suite (or lounge access at least), that person will probably be more likely to go back to the hotel, rather than stay somewhere else. Like how the free upgrade I got at Hotel Palomar to a jacuzzi suite will make me more likely to stay there again (amongst other great things about that hotel). ^

And with respect to Mark Hopkins, when the walls are so thin that you can hear the person in the room next door snoring(!), it's not a good thing! (slightly off topic, sorry)