When you redeem a travel package award, you actually get two things (I was going to say two "pieces of paper", but they are literally pieces of paper). First, you get a hotel voucher (in this case, a 7 night stay at a cat 7). Second, you get airline miles deposited into your designated account. Accordingly, if you are planning to cram 8 people into one standard hotel room, you'll only need on hotel voucher.

Having said that, it reaches a point where you're better off doing the travel package because the incremental cost over just redeeming for miles is minimal. There is no requirement to use the hotel voucher at the same time as the miles, so you can just get extra hotel vouchers and use them in the future. I *think* they expire in one year but can be extended for another year for a minimal fee of $50.00 (If I'm wrong on that, someone will surely correct me).