I agree with Ross' position regarding lugging chips up and down the strip .. plus dragging an unwilling non-collector spouse along in tow in the desert heat ... ain't no fun !
The other factor is convenience. It's nice to simply get on the elevator when one wants to take a shower, change clothes or shoes, or take a short nap or a dip in the beautiful Trop pool, or offer some in-house conveniences for that non-chipping spouse while the collector is doing his/her thing... , or to invite other chipper(s) upstairs to look at chips or transact some personal business (as no trading between non-table holders is permitted on the convention floor).
Yes, Undoubtedly there are several other hotels in town with a cheaper room rate, but there is nothing like staying at the convention hotel for convenience sake.... not to mention saving on cab fares between properties in traffic that pretty much stands still for most of the ride.
There is so much going on at the convention hotel during show hours and/or afterwards, whether it be the trade session, the auction, the educational meetings, chapter activities, etc. Plus it provides a central meeting place for everyone in attendance.
Since Brenda and I usually visit Las Vegas for the whole week .... what we have done in years past ... is to stay at the hotels with cheaper room rates (such as an overnight trip to Laughlin) in the beginning of the week to save a few bucks ... but once the convention begins, we check into to the convention hotel site.
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