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The hotel is definitely in business but part of being in business is protecting your interests. By allowing the scenario to unfold as it did the management set the entire hotel up for negative publicity and potential legal action.
It would have been easy to take to take precautions already mentioned, separating them etc. but far easier just avoid the problem altogether by not booking the two on the same night. On a pure business standpoint the ramifications of such a snafu could be more costly than loosing one of the bookings.
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