People are judged by the company they keep. The FA board has chosen to stand by its contract with the Hotel chain. Its reasons are its own. Looking in from the outside, we are free to make our judgements of the participants based on our perception of their behavior.
Based on the information that I have seen, I personally think that the FA made a huge mistake by selecting a hotel chain with a history of civil rights violations, whether or not there was a court imposed settlement in place when the agreement was entered into. Now, they have compounded that error by deciding that the economic issue is more important than the ethical. What a disappointment.