It's a fair point... but having a hotel in that location is by far the most convenient. Even the closest hotel currently requires either a shuttle or a rather unpleasant walk uphill without much shade.
But aside from location, it'd be the brand theming. The property hotels at USO are mostly greatly themed... and, I assume, extra perks that a Universal Hotel can offer that off-site hotels can't. I mean, I believe some do now, but who knows if that will continue once this hotel gets built? They could easily have a monopoly of early entry, SNW early entry or included Express, which could make a stay there very alluring.