Since you were so adamant you tempted me to look it up, happens to be you're right!
However, I don't think it pays to break up reservations for a mere 250 points while having the slightest chance that you'll have to check out and check in again. Besides I'll opt for the 'complimentary in-room Internet access' welcome bonus.
Following is what SPG outlines for SPG Gold:
New! Your choice of a welcome gift with each stay. Choose from bonus Starpoints, complimentary in-room Internet access and a complimentary beverage.
Room & Suite Upgrades. Upgrade to a Specialty Room, where available, for as few as 1,000 Starpoints or a Suite for as few as 3,000 Starpoints.
I was wondering if these upgrades are offered for award nights customers, or it's just for paid nights? And if it is offered for award customers, did anybody have any success to do so at the LMDS?