Tech, blogging, and social media conferences outside of WordCamps, I've often seen marketing propoganda displayed at hotels.

However, I've never seen an agreement to which prevented the separate hotel venue from the conference, from displaying such marketing materials.

I've also worked in hotels for a few years and been a part of arranging blocks of rooms for events. It's usually, depending on the facility's policy, done with either a contract stating the number of rooms held, pricing, and dates. These are then put into the reservation system as a group block, that the individual event attendee reserves under their name and expressing that they are a conference attendee (otherwise they are lopped into the regular hotel stay, or have to go elsewhere if the facility is booked.) Usually there's nothing about marketing, unless the actual event arranges something... much like BlogHer does (and did at BlogHer16, in Los Angeles, where BlogHer16 event signs were seen even from the 1st floor of the hotel, that their conference was at. That part cost money, aside from the conference rooms. They also had a gift bag for those who stayed at the hotel, filled with really valuable items from sponsors and the event.)

I could see if WCUS paid to block off rooms or an agreement with the hotel, this would be added to the sponsorship agreement. Was it prior... obviously not or this wouldn't have come to light. Will it be added in the future... perhaps it will? Hopefully it will.

While I'm glad some type of understanding was made, how it was done, was not done right. Going forward, make sure it's in the terms, and make sure that the hotel facility is aware of those terms and will make sure sponsors are aware that it is not permissable to display marketing propoganda in the "official" hotel.