Manhattan Beach Mariott is a nice hotel by any standards, I can say this having stayed there myself. It's not like they put him up in some manky roach-ridden fleapit motor inn.
What should the company do, put him up in a $7500 per night penthouse suite every time he overnights?
And this prima donna's argument about the terrorist risk of staying near the US Embassy is complete and utter rubbish unless there was a travel advisory in force with anything other than the usual general threat warning (ie, the sort of advisory that says "don't travel to the UK")