from the link below, an estimated 30,000 to 40,000 marathoners/tourists had hotel reservations PRIOR to hurricane Sandy. As a result, the hotels have a legal dilemma on their hands, honor the original reservation contract or dishonor it so they can rent rooms to storm victims.

Marathon Backlash Hits TwitterMeanwhile, the city's promises to use private transportation for the marathon haven't placated some irate citizens. Some people have taken to Twitter to vent their anger about the marathon and its impact on storm survivors.
Some survivors without power have been holed up in area hotels. Still, they can't get additional reservations because many hotels rooms previously were booked months in advance by runners, scheduled to participate in the race. (Read more: Available: NY Hotel Room, No Power for $400 a Night)
"#Disgraceful," tweeted one Twitter user.

Hotels are obliged to honor legitimate reservations — whether you're a stranded storm survivor or marathon runner. "If a guest has a legitimate reservation, you've got an obligation," said William Carroll, senior lecturer at Cornell University.
But there's nothing preventing hotels from proactively contacting those with reservations, who have yet to arrive, to confirm their travel plans, said Carroll, who is also a senior hotel and lodging analyst for market research firm PhoCusWright.
As the storm's aftermath continues, many travelers probably won't be able to get into New York City this weekend.


NYC Marathon Proceeds as Backlash Mounts - CNBC