So can you occupy rooms in more than one location at the same time?

No?

Then it's just a really expensive room with high booking/cancellation flexibility and customer lock-in (you won't pick another room in a city if you've already paid for this).

So this seems to be basically just a premium version of what a youth hostel line membership gets you. Not that there's anything wrong with that, I can imagine that the business model might work.

(If the answer is actually "Yes" then I'm surprised and 1600$ doesn't seem so bad.)