The fiat currency price of a hotel room is converted into bitcoin at the moment of booking and the respective sum in bitcoin is transferred at the moment of executing the payment. (coinfox.info)
Tip: Make sure that you check the cash price of a hotel stay before booking a cash & points reward redemption. (johnnyjet.com)
Still pricey for what you get, but notice how the price when you pay with points stays the same irrespective of the cash price of the hotel. (milenomics.com)