>>213509432
From an immediate benefits to the hotel owner perspective: because cheaping out on labor did nothing for this hotel that outweighs the negative publicity it produced.
From a broader sociological perspective: The capitalist bargain is that you spend a decent chunk of your week working, so you can spend the rest of it living relatively comfortably or better. If you are competing for who is willing to work in the worst conditions, it's a race to the bottom of your quality of life. This causes people to drop out of the rat race entirely. At that point the drop-outs are either placated with benefits at the cost of the economy or they get politically violent. Neither of those are good for any business owner.