Mine (PP) showed up as a credit on my folio which was good

It actually states:

Date Cash MR Pound (where the room # goes) and in the credit column 181.14

The thing that brought this to my question though is that the night I checked out, I went to the currency converter that is linked above and found a $1.98 USD > GBP exchange rate. Since it was on the MR currency converter this is what I thought I should get.

So tell me, does the hotel make the spread as profit on the $198.00 vs. $181.14 that they credited me?

Although it does have this disclaimer below:
Note: Converted amount is based on the exchange rate from the close of business of the preceding day and is for comparison purposes only. All charges are subject to the hotel's exchange rate at check out.