I became a "rewards member" with a major hotel chain once. Never again. The deluge of spam I got was intolerable.
The hotel has a room they want to sell for $100 a night. They can list it on their website for $100 a night, and after paying credit card processing fees, they get to keep the remainder.
The hotel now lists the same room on one of the booking sites that charges a x% fee for facilitating the transaction and providing discovery for the hotel (getting the room in front of interested customers). The hotel can either take a x% haircut, or charge x% more. So that same room might be $110 per night now instead of $100.
It's a business decision, and not all operators will make the same one, naturally.
You see similar things on online marketplaces, such as Amazon. Amazon's commission fee can be anywhere from 15%-30%, depending on the category. Unless there's huge margin baked into the product price, you may very well be paying 15-30% more for the product on Amazon. Not always, of course, as it does come down the the business and the strategy they've chosen.