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Don’t take this as fact, it’s speculation, but I would imagine that taking a hotel transfers the contract to BA Holidays and this renders your discount null and void.

I booked flights on (from my BAEC account) and was offered a ground transfer at additional cost, which I accepted.

Without any warning, BA then regarded this as a BAH contract and I could not upgrade the flights via the MFU facility – had to have several conversations with BAH people.

Very painful.

I won’t buy anything other then flights from BA, after that experience.