This is about them voluntarily giving guest information to ICE without informing the guests. Which caused actual harm to at least 6 residents in the state of Washington. There's no federal law saying that hotels must provide detailed guest info (name, DOB, drivers license, car license plate, room number, and other info) and the hotel. So my plain reading of their terms would suggest that data should only be shared "during the discovery process in litigation [or] pursuant to a court order"
Washington state however has a statute that protects consumers from such data sharing.
(Also, I added a link to the terms in an edit that also fixed formatting. Wasn't my intention to be deceptive by omitting it)