I believe it's any hotel that submits themselves to the system, and possibly has also had approval from the company. The discount is obviously going to be larger on a hotel that is more expensive to start with... personally I'm less likely to take a gamble on saving $10 for a 2.5* hotel vs. $150 for a 4-5* one.
What's the origin of your question? Are you trying to avoid a certain hotel, or get a further discount off of a less expensive one? We might be able to answer it better.
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