If you did pressure them, I'd bet my bottom dollar that the response would be "we upgraded you to a higher floor". Let's face it, they could give you the 7th floor (unimpressive) and claim they were going to give you the 6th floor before the "upgrade".
Indeed!
A long lasting bad taste remains with me from years ago after being 'upgraded' at HSYD into an exec room on the 27th floor ... 27 is almost the bottom of the habitable floors in this hotel .. I can't remember where the accommodation starts, buts its around 25-26-27. Nothing against the lovely airline hosties I shared the floor with, but you know 'something' is up when you've been upgraded to a floor full of contract rate guests. The noise from the Zeta bar downstairs was unbearable.
As everyone has already stated, because of the nature of the rooms at this hotel they can basically say anything, on any given day, to suit their own purposes when it comes to upgrades - I've stayed all over the place, on different floors, some exec, some not, and I really can't tell the difference ... perhaps the soaps are a bit bigger in the nominated 'exec' rooms?
The room types are the problem. H-SYD, if being fair dinkum, would take two floors and renovate them to larger base rooms. That'll allow an easy upgrade and be able to sell for a higher rate, but they'd lose rooms.
I was recently rather impressed at DT MEL. Its such a small thing really, but goes to show that sometimes small things are enough ... at least for me. DT MEL has 2 floors nominated as "HHonors" floors. Theres even a little placard to remind you of this when you get out of the elevator. They are quite high up, maybe near the top, which is always important to me as I'm sensitive to street noise. I'm not at all sure, having only stayed the once, if there is anything particularly special about the room themselves, though I was lucky enough to snag one with a window (not to be automatically assumed at this hotel). I asked for an upgrade at checkin and there wasn't one available, but, given I was booked against a P+P 'interior' room, I certainly felt like I'd been upgraded and left the hotel the next day with a smile and quite happy.
HSYD could well benefit from a similar idea I think, because status guests who know the hotel well walk in already knowing that this hotel likes to 'game' you.
Why would they do that when they seem to be consistently running at high occupancy? Certainly not to be "fair" to status members.
Certainly their rack rate would indicate this, but I wonder sometimes - as a recently posted lament by me ponders. Overnight, in late January, they halved their rack rate ... this smacks of 'trying it on' with a ridiculous rack rate followed by the certain realisation that they were facing operating an empty hotel.
As I said from the start, the offer made does have some merit. If I were travelling alone, I'd reject it but if with family, I'd grab a King Suite for $200 over a dogbox without hesitation. Horses for courses.
I really dislike this practise. For a relatively small return (in the scheme of running a hotel) they seriously annoy status customers who, by the very fact they hold decent status, means they are good paying clients.
I got hit by this at HSW 18 months or so ago and haven't stayed there since. It doesn't take a lot of pondering to realise that better rooms -are- available, but that they don't want to give you one. In my case I was offered an upgrade from a base to an exec at an upgrade price more than the rack rate (when combined with my already booked base rate). I told them to cancel my original booking and I'd take the exec room at the listed rack price. In the end, they relented and I got the exec room as an upgrade... but all this malarkey just made me feel like I was being played.
I'm not by nature a DYKWIA, but at the same time, I hate being gamed, I'm really sensitive to it. As per Marki's experience above, I've learned now to not get too flustered by this type of behaviour, I'll take my time, at check-in, pull my phone, check the website for both rates and availability and enter into a discussion about it - asking, if it becomes necessary, for the duty manager.
SYD desperately needs a DT in my view. Somewhere else in the chain to think about if HSYD is in one of its all too often experienced 'phases'