I would agree that the owners of the hotel are entitled to run the business as they see fit, provided that they dont discriminate on race or religion.
However I and most others find the decision offensive, and as a result I would never use this hotel chain, and would ask anyone patriotic also not to patronise it.
If as a result, the owners go bust, and I hope that they do, then thats the result of taking a perfectly legal but potentialy unwise, and certainly unpopular, bussines decision.
Here in the UK I dont think that soldiers in general are treated as well as is the case in the USA, which is very sad, though there has been a slight improvement recently.
A right wing political party recently stated that asylum seekers and illegal immigrants are better treated than soldiers, this might be rabble-rousing, but if true it is shocking.
It is true that some soldiers behave badly when off duty, especialy when excessive drink has been taken, and I would hope that any soldiers reading this would think twice before behaving in a way that gives a poor image of the armed services.