Great idea, but I wouldn't hold back on breakfast etc. After all, you are trying to show off what your hotel has to offer. Charge $15 or $25 if you have to. They are all great deals.

You should also think carefully about one night restriction. I realize that you don't want too many of the shabby crowd moving in for the long haul. However, consider the customer's point of view too: I wouldn't fly from Chicago all the way to SF just to try a $10 hotel room. Any normal trip with some other business is probably 2-3 days, at least a weekend. To tell you the truth, while I like bargains and discovering things, I probably won't bother with a promotion that forces me to interrupt my trip or business in the middle to look for and move to another hotel.

So, instead of a dirt cheap rate for just one night, you might offer a meaningful discount to the kind of customers you want for the kind of trips they take. Just limit it to once per person/home address/cc etc.