If the property ended up overbooked due to prior commitments to Priceline, Hot Wire, etc. that's was their choice in that no one forced them to enter into an agreement with either. It is their responsibility to consider that factor in their capcity control calculations.

The part that really gets to me is the "choice" scenario presented by the manager, ie. "Another guest stayed over unexpectedly"; we'll throw them out, but there's no housekeeping staff so you'll have to sleep on their bedding or you'll be walked."

Why not come clean ?-- "Sorry, but the laws in this state/municipality prevent us from evicting the guest."

Can't say that, if it isn't true -- had it been me, and I decided to go to that Hilton to grab some sleep, whatever else, I would have checked with the authorities, confirmed that was or wasn't the case and reported the incident to Mr. M's office (since I was still due the compensation?

Betcha there would be repercussions beyond $100. free room nights and picking up a night at the Hilton.

Instead she chose the "give the customer a choice routine" between two scenarios that were acceptable (but only to the property), sleeping on someone else's bedding or paying for a night elsewhere. .

But just suppose the OP called their bluff and told them to throw the other party out, give them sheets and they'd remake the bed themselves?.

What would they do then?

And what would they do after the OP reported the incident to Mr. M's office about what they attempted in an effort to avoid granting what they're required to provide to a guest with a valid reservation under Marriott's "walked guest rules" in addition to their totally insulting behavior?

I'd love to be a fly on the wall when the property's management was called to account by MI.

Imagine that conversation.