Is HH mostly for business travelers and the rich? What about the more budget-oriented traveler?

I spend many nights in hotels (maybe 100+ in 2007). So, you might think that I should be loyal to a particular chain and reap the benefits. But the major international chains I know of (e.g., Hilton and Marriott) are so expensive that that extra cost would far outweigh the meager benefits (occasional room upgrades and free hotel stays).

As an example, the Conrad Bali is about $150+. You can easily find very comfortable alternative accommodations for $50 to $70. If someone else is paying, I say go for it. Or, if you're on a 2 night trip with someone you want to impress, I say go ahead and splurge. But on a 3-week trip, the cost difference adds up to well more than $2000. That could easily fund a second trip, or allow you to enjoy a 5 week vacation rather than 3 week vacation. In my possibly skewed view, you get fairly little for that extra $100/night (most of my enjoyment comes from visiting the city and surroundings, not sitting in my room. Plus you end up paying more for food, internet, tips, and everything else at the hotel.

IMHO, airline loyalty programs are an absolute must for the frequent traveler, but hotel loyalty programs are only appropriate for the business traveler and the rich. Am I missing something?

(please forgive me if there are previous threads on this, as I suspect there are...but I couldn't find them).