Flaps,
Is there anything formalised in BA, in writing, about who gets the upgrades if and when a hotel offers them? Does it say anywhere that for example the chain of command, as valid on the aircraft, should be followed in these cases, or is it a matter for people themselves to sort out there and then at the hotel's front desk?
The formal "in writing" bit is exactly as justinzider said:
Where the Hotel wishes to upgrade Crew Members to superior rooms, (in addition to the Captain, and/or any specified in the agreement), such upgrades shall be allocated in the order of, Senior First Officers; First Officers; Cabin Service Directors and Pursers. Any room upgrade shall be at no extra charge to BA Group.
As far as I know, there's no agreement to upgrade anyone other than Captains. I'm also led to believe that the suspension was more a matter of the individual's attitude to the hotel's response than the demand/request for an upgrade itself.