And plentiful open electrical outlets on top of the workspace!! If that's the one "upgrade" I can get, I'll take it!!

How about one which does not require moving of beds and desks to get at it.

A few reasons I list below.. but an anecdote: my wife usually travels for work and just gets the cheapest rooms. I have IC RA Marriott Plat, etc... she came along for the first time, and now she's spoiled.

Larger suite = can lay out all our luggage after all the shopping to repack appropriately (3 large luggages from all the crap she bought)

Lounge access = quieter breakfast area, drinks free, some have nice views. while these are tied to status and not 'room' upgrade.. the two go hand in hand. you only get room upgrades when you have status usually.

Preferred treatment = this is subtle.. but only noticeable when sh!t hits the fan with your travel schedule.. extend a night or two, cut a night or two short, need a room in really short notice etc.. status helps reduce headaches.

Small details = some fruit upon arrival, dedicated checkin line, some little gift like a chinese ceramic USB key, just some small details that makes a diff over a long time.

When you stay in a hotel 5 nights a year.. any room with a bed, internet, good enough
when you go in and out of hotels half of your life, the smallest details make the biggest differences..

Bingo!

some hotels are actually good, and some upgrades are actually valuable

you can get upgrades via travel agents (free)
when theyre confirmed at booking, why not?

The best upgrade for me would be one to a non-smoking room. Unfortunately, where I usually travel (Indonesia and China), those still have ashtrays.

Otherwise, I don't really care whether I have a small or large room. What matters to me is if the walls/door are paper thin...again, a common issue in China (and Indonesia). Turning on a bit of music to serve a two-fold purpose- overtaking the human chirps outside of the room and serving as white noise while traveling alone- has proven useful and soothing.

If traveling with a girlfriend, the decision of where to stay/how to stay there will be hers.

Another advantage of the upgrade is that one is more likely to get a big and deep bathtub and a nice separate rain shower. Double bowl sinks and lots of bathroom counter space are also a plus.

When traveling alone a suite wouldn't have any value, but a top floor room with a nice view would, as would lounge access.

Many people here are mentioning lounge access. I personally have no concept of a hotel lounge. To me, an airline lounge is used so you can get away from the masses of people in the terminal and have a quiet place to work or relax, but why would you need that at a hotel where you already have your own private room? Other than perhaps free food, what is the attraction of a hotel lounge?

IME it's basically the free food (and sometimes drink) that appeals.

It's food without having to wait for it in a restaurant as well as sometimes a pleasant place to sit that isn't a bar. It's a place where you might feel comfortable chatting with other guests, much the same as one can sometimes talk with a seatmate on a plane. For some people, it must be a bit of DYKWIA in that the hotel openly treats you special and you have access to a place where they don't allow all guests.

In some hotels, the lounge floor is key-card controlled access. This provides extra security, especially in large hotels in urban areas where almost anyone can apparently enter the elevators leading to guest floors.

In most hotels the lounge is on the same floor as the executive level room. This means that in the morning you can just paddle down to the lounge, grab a paper and a real cup of real coffee and sit at a real table. There's usually breakfast of some sort - varies wildly - so you can get a little nosh without having to go out or order into your room and pay through the nose.

In the evening when you're back after a long day you can dump your stuff in your room and then go for a drink and/or a little nosh. On those days when you're by yourself and are beat the nosh can even BE your dinner. Or, if you want to go out there's generally a staff member there who can advise you, make a dinner reservation, whatever. All very civilized.

The ability to get a quick, easy, small breakfast is the main appeal of a domestic U.S. lounge for me. Saves me a trip to Starbucks or bagel shop down the street.

The drinks and evening spread are an added appeal of an international lounge. The evening spread can be quite good, and a lot of lounges abroad have full table service and good liquors and wines to choose from. On that level, a good hotel lounge isn't much different from a good international airline lounge. (Better than a J lounge, but obviously not at the level of, say, the LH FCT.)

Also, at some good international properties, the lounge attendant is also a competent concierge. That can be extremely helpful if you're in a city where you don't speak the language and would have a hard time booking restaurants, events, etc. yourself.

I'm in a hotel room 2 - 3 weeks a month, 11 months out of the year. I like having a larger room with a couch when I will be in a place for more than a week. It just makes being in a hotel room seem less like a hotel room. It sort of becomes home.

If I'm in the US, then I'm staying at a Hampton, Holiday Inn, etc. There a room upgrade gets me a mini fridge and microwave. Then I shop at the grocery store for my dinner and I don't have to eat in a restaurant for 3 meals day for a couple of weeks at a shot.

Company to watch the game, free drinks, a place to get away from your room

There are some people that can stay in the same room all day, and some who like the chance to get out and around.

I don't think anybody needs a lounge, but it's a nice place to kick back, read the paper, watch the news, etc.

It's sort of like asking why people need a living room in their house.