A co-worker of mine lived at a Hilton for 6 years in the bay area because it was much cheaper then renting an apartment of similar quality. The hotel gave him a discount because it helped keep the occupancy rate of the hotel up.
I think he was paying $1500/month and he got daily room service to clean up, fresh towels and free laundry service. Free breakfast every morning, free internet, free TV, Free newspaper. And then because he was staying so long and he was on their Members plan, he was racking up points so fast he never had to pay for anything when he traveled and stayed at a Hilton.