So you are saying that I am entitled to use the IBM rate if I know the SET#?
Just ask your PM for a letter on the IBM letterhead that says you are on temporary assignment to IBM (or something to that effect) and that you are entitled to the IBM corp rate. I have never seen any corporate rate that says not valid for contractors/consultants, only the government rates. I don't see why you are upset about this, unless you plan to use it for personal trips.
In my experience most of the so called up-scale hotels ask to see your ID (ie W, St Regis, Luxury collection) but I never use a rate that I don't have the proper ID/letter for. They can charge you rack rate if you don't have your id, this almost happened to me once when it took a few days to get my government contractor ID.