Jetsam don't give up. Every company whether aviation or commercial tries to penny pinch on staff hotel costs. With solidarity, persistence, rational argument or legal threats the staff can maintain a reasonable accommodation when travelling on company business.
As an example line staff used to demand that they received no less a standard than flight crew. We all had the same goal with a standard of what Lufthansa used to describe as "No less than you would take your spouse.".
By talking to other departments and combining resources and complaints you may well be able to provide a united front which may reduce overall company costs. Play the company ball, rather than the departmental one. It may work.